What is the project npv in millions of dollars

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You are considering a new project. The initial cost is $165 million. You expect free cash flow (FCFF) of $5million the 1st year, and that this free cash flow will grow by 11.5% over the following 10 years (i.e., g=11.5% for t=2 through t=11). After that, free cash flow is expected to grow at a constant rate of 5.7% forever. Assume a WACC equal to 10%. What is the project's NPV "in millions of dollars"? Answer should include four digits to the right of the decimal point.

Reference no: EM132703551

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