After Tax WACC
Example - Sangria Corporation - continued
The company would like to invest in a perpetual crushing machine with
cash flows of $2.085 million per year pre-tax. Given an initial investment
of $12.5 million, what is the value of the machine?
0
. 1084
- 5 1.^355
0 1=
= − +
−
= +
r gNPV C C