{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Company Valuation - • The terminal value of the business...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Company Valuation Several key ratios were used to valuate the five year business plan. Those ratios include return on investment, return on sales, and return on assets, current ratio, quick ratio, cash turnover ratio and debt to equity. The expected total expected ROI is 193% which means that the investors are getting a large return on their money. Each year the ROI increases. The discount rate is 8.19% The net cash flow during the fifth year of operations is projected to be $588,998
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • The terminal value of the business at the end of year five is projected approximately $2,156,088. As indicated above, the investor portion of this amount is 193% or approximately $3,027,748. The Internal Rate of Return (IRR) is 61% and NPV is $1,392,157 • Total return on assets is 161% • Owner’s equity at the end of the fifth year of operations will be approximately $1,692,157....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online