Problem 12.28 – Defense Electronics, Inc. (DEI)
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Given that the company plans to set up a manufacturing plant to produce new RDSs, the market data on DEI The firm wishes to set up a manufacturing plant to produce radar detection systems (RDS). Compute the cash flow at time 0, the project’s discount rate, the aftertax salvage value of the plant, the OCF, and finally, the NPV and IRR of the project.
Calculator Preview
Your numbers will vary.