A. Suppose Wishing Well (see Problem 6) is evaluating a new motel and resort on a romantic site in..

A. Suppose Wishing Well (see Problem 6) is evaluating a new motel and

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A. Suppose Wishing Well (see Problem 6) is evaluating a new motel and resort on a romantic site in..
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resort on a romantic site in Madison County, Wisconsin. Explain how you would forecast the

after-tax cash flows for this project. (Hints: How would you treat taxes? Interest expense?

Changes in working capital?)

B. What is meant by the flow-to-equity valuation method? What Discount rate is used in this method? What assumptions are necessary for this method to give an accurate valuation?