The paper is to be written in MlA format with app research in the essay on Psychosis in the news. I will leave the rubric in files and the syllabus…..
Is there a big jump of unlevered net income from Year 5 to Year 6? Why?
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Also read the weekly outline (for week 8) on the TWO due dates for the case discussion (one for
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sessions will participate more on the discussion board (i.e., make more than the minimum 3
Choose one of the below topics, and post your initial response on that topic.
1. In the case study, when calculating incremental unlevered net income, should we include
all the expenses mentioned in the case? If not, what expenses should we exclude and
2. Is there a big jump of unlevered net income from Year 5 to Year 6? Why?
3. How do you calculate the level of net working capital (NWC)? What is the value of
NWC at the end of Year 0, 1, and 6?
4. Which of the following free cash flow (FCF) streams is (are) a growing perpetuity?
FCF in Year 5, 6, 7 …
FCF in Year 6, 7, 8 …
FCF in Year 7, 8, 9 …
If you use the growing perpetuity formula: Year N TV = (Year N+1 CF)/(r−g), what is
the present value of that terminal value (is it Year N TV or some other numbers)?