If the project is initiated, it will require an expenditure on research and development of 4% of the total
amount that company x spent on research and development in the last financial year. Also, an investment in a new production facility, which is estimated to cost $24 million, will be necessary. The project is three years.
For a NPV analysis using free cash flows, in year 0 would the free cash flow be = (capex) + (expenditure after tax)?.
so would you have a capex and cash flow from operations in year 0?.
Free cash flows = Cash flows from operation - Capex In year 0, for NPV analysis using... View the full answer