realoption - Discounted cash flow analysis Year 1 2 3 4 5 6...

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Unformatted text preview: Discounted cash flow analysis Year 1 2 3 4 5 6 Projection Revenues $455.0 $551.0 $800.0 $1,080.0 $1,195.0 $1,255.0- COGS(75%)-341.3-413.3-600.0-810.0-896.3-941.3 = GP 113.8 137.8 200.0 270.0 298.8 313.8- SG&A (24% of sales)-109.2-132.2-192.0-259.2-286.8-301.2 = OpProfit 4.6 5.5 8.0 10.8 12.0 12.6 CashFlows EBIT(1-tax rate)(33%) 3.0 3.7 5.3 7.2 8.0 8.4 + Depreciation 19.0 21.0 21.0 46.0 48.0 50.0- CapExp-100.0-8.0-9.5-310.0-16.0-16.0-17.0- Increase in NWC-25.0-4.0-5.0-75.0-7.0-8.0-9.0 = FCF-125.0 10.0 10.2-358.7 30.2 32.0 32.4 + Terminal value 610.0 Discount 12% x factor 1.000 0.893 0.797 0.712 0.636 0.567 0.507 = PV-125.0 9.0 8.1-255.3 19.2 18.1 325.4 NPV-0.4 Discounted cash flow analysis (Phase I) Year 1 2 3 4 5 6 FCF-125.0 10.0 10.2 11.3 11.2 11.0 10.4 Terminal value 200.0 Discount 12% factor 1.000 0.893 0.797 0.712 0.636 0.567 0.507 PV-125.0 9.0 8.1 8.1 7.1 6.2 106.6 NPV (Phase I) 20.1 Discounted cash flow analysis (Phase II) Year 1 2 3 4 5 6 Projection FCF-370.0 19.0 21.0 22.0 Terminal value...
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This note was uploaded on 04/02/2009 for the course DEPARTMENT FIN 4320 taught by Professor Sherwoodbishop during the Spring '08 term at Southwestern.

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realoption - Discounted cash flow analysis Year 1 2 3 4 5 6...

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