a. Free Cash Flow CO Y1 Investment in fixed assets Sales NOPAT Depreciation Working Capital Delta WC Interest expense Free Cash Flow Y2 Y3 3.000.000 3.000.000 280.231 833.333 660.000 60.000 100.000 796.458 600.000 600.000 -3.600.000 3.300.000 197.938 833.333 726.000 66.000 100.000 865.271 3.630.000 280,232 833.333 726.000 726.000 100.000 287.565 b. Weighted Average Cost of Capital (WACC) Invested Capital Investment in Fixed Assets Investment in WC Total Investment 3.000.000 600.000 3.600.000 Debt/Investment Equity 55% 44% Cost of Equity Cost of Debt WACC 5,9% 2,1% 8% c. NPV CO Free Cash Flow Discount multiplier Discounted FCF NPV Y1 -3.600.000 -3.600.000 -1.891.083 Y2 796.458 0,926355 737.803 Y3 865.271 0,858133 742.518 287.565 0,794936 228.596