RWJ 7th Edition Solutions - Colby College

10. There are a number of reasons. Two of the most important have to do with transportation costs and exchange rates. ... Capital spending –$21,000,000 Change in NWC –1,500,000 Total cash flow –$22,500,000 Now we can begin the remaining calculations. ... If the stock price at expiration is $140, the payoff is: Payoff = 10(100)($140 ... ................
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