Based on the financial data projections, you will estimate the free cash flow to the firm (FCFF) over the next
Assumptions for the MH company Business Plan
The forecasted turnover for the year N+1 is estimated at 4.4 million SAR. You anticipate an increase in turnover in N+2 of +15%, +10% in N+3, +5% in N+4, then a stabilization of growth at 2% per year. The projected operating margin rate is +4% for N+1, +5% for N+2 and +6% for subsequent years. Depreciation expense is estimated at 4% of revenues, as well as CAPEX. The working capital requirement is assumed to equal 10% of the current yearly revenues.