As a summer intern, you are asked to prepare a spreadsheet calculating the project free cash flow associated with a project your employer is considering. Initially your boss assumes that no debt will be used to fund the project. During your presentation to the committee that evaluates projects, you learn that, in fact, the project will be financed with 25% debt. Determine whether the following statements are true or false, and explain your a. You need to go back to your office and adjust the project’s free cash flows to include the interest on the debt.
b. You need to go back to your office and adjust the project cash flows to update the taxes paid due to the tax shield provided by taking on debt.
c. Your cash flow model does not need to be updated because the financing of the project does not affect the free cash flow calculation.

Select the word from the list that best fits the definition sometimes

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?