startup cocommenced operations at the beginning of 2020. $125...

startup cocommenced operations at the beginning of 2020. $125 million of equity was raised to fund the purchase of equipment as well as for general corporate purposes. As part of its business planning process, a 5-year forecast was developed (Base Case) as well as upside and downside scenarios (High and Low Cases, respectively). At the end of 2020, StartupCo issued $150 million of 5-year debt, repayable in equal annual installments at the end of each year, to finance its future capital program..

1. Using the high case calculate the change in noncash working capital in 2023e that would appear on the cash flow statement

-$141

$141

-$1828

$1828

1. Using the low case calculate the interest coverage ratio using EBITDA for 2021e

2.7x

1.9x

0.9x

0.3x

3 . Using the base case calculate the roe in 2022e

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2021E 2022E 2021E 2024E 2021E Live Case Income Statemont Assumptions Annual Sales Growth Coat of Sales (1 of Salonj SGIA Exporia ( of Sales) Interest Rate Emactive Tix Rate Balan on Shoot Assumptions Accounts Receivable (Los) Accounts Payable (Days) Capital Expenditures Equity Issued (Ropaid) Scenario Inputs Basa Casa In came Statemont Assumptions Annual Sales Growth (H) Coat of Sales (1 of Sales) SGIA Expored (1 of Sales) Interest Rate Effective Tix Rate Balan on Shoot Assumpdans Accounts Receivable (Days) Accounts Payable (Days) Capital Expandtures Equity Issued (Ropaid) Low Casa Inooma Statement Assumptions Annual Sales Growth Coat of Salon (1 of Salon) SGIA Exporta (1 of Sales) Interest Rate Emfoctivo Tix Rate Balan on Shoot Assumptions Accounts Receivable (Days Accounts Payable (Days) Capital Expandtures Equity Issued (Ropaid) High Casa Inooma Statement Assumptions Annual Sales Growth Coast of Sales (" of Salma) SGIA Exporea (" of Sales) Interest Rate Effective Tix Rate Balan on Shoot Awumptions Accounts Receivable (Days) Accounts Payable (Lars) Capital Expandtures Equity Issued (Ropaid)

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2020 2022E 20218 20240 202 JE Income Statement Salon Rovonu $50 000 Coat of Sala Grow Profit 527, 500 Doprociation Exporia Internet Export $0 314 0 Not In com $10, 1500 Balance Shoot Asrots Cash & Cash Equivalents $194,000 Total Current Ascots $198,000 Proporty, Plant & Equipment $91, 800 Total Assets 5290, 500 Lisbilldos Accounts Payable Total Current Liabilities 50 Long Term Debt $150 000 Total Liabilities 3155,000 FO Sharchaldor' Equity Share Capital Retained EXIT $10 80 Total Sharchaldor Equity $195 500 Total Llabilltion and Shareholdon' Equity Cash Flow Statement Operating Activitdon Not Incomic Adjustments For Doprociation Exporead Changes In Non Cash Working Capital Cash Gonorated From Operating Activities 519,000 Invoting Acdivides Additions to Property, Plant & Equipment $10oom Cash (Used For) Invoting Acdivides $100,000) Financing Activiton Issuanos (Ropaymont) of Debt $160 000 Issuno (Buy back) of Equity Cash (Land For sonorated From Finanding Activities $275,000 Cash (Used) Gonerated In the Forlad $194 000 Cash & Cash Equivalents, Beginning of Parked Cash & Cash Equivalents, End of Porlad $194 000

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Model Inputs and Assumptions General Assumptions Forecast Scenario Days Per Year 365; Capital Expenditure Assumptions Asset Salvage Value (%% of Capital Addition) 15% -- Asset Useful Life 10 Years ;

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5.10%

5.50%

4.20%

4.50%