You are a consultant who was hired to evaluate a new product line for Markum Enterprises. The upfront investment required to launch the product line is $150 million (time 0). The product will generate free cash flow of $8 million the first year, and this free cash flow is expected to grow at a rate of 3.5% per year. Markum has an equity cost of capital of 12%, a debt cost of capital of 5%, and a marginal tax rate of 40%. Markum plans to finance the project with perpetual debt of $100 million that has an interest rate of 4%. Calculate the present value (PV) of the unlevered firm. ANSWER CHOICES: 140   150   160

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Q: Chris and Karen have a combined take-home income of $5,000. Their total monthly payments on consumer…

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Q: generates $802 per month in income on average. What is Eva's net monthly cash flow?

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.