This week, please read the continuing case at the end of Chapters 5 and 6 in your textbook.
After studying the Chapter 6 case, respond to the following:
- What is PCI, Inc.’s current level of cash flow?
- Assuming that the level of cash flow is fixed at an 8% rate of discount, what is PCI really worth on a discounted cash flow basis? What is PCI worth on a book value basis?
- Assuming the 8% discount rate and assuming fixed cash flows, what does MCS expect to be able to realize as a net annual cash flow beginning next year? Case See Attachments