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  • Cashflow Example

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    manikandan039715
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    The document provides initial and future financial conditions for a firm over a 5 year period including revenue, costs, assets, liabilities, tax rates, and capital expenditures. It also includes a cash flow statement showing revenue, expenses, taxes, depreciation, capital expenditures, changes in working capital and free cash flows projected over 5 years with a terminal value calculated in year 5. The net present value of the projected free cash flows is calculated to be $30 using a discount rate of 6%.

    Original Description:

    A sample statement showing NPV calculation by discounted cashflow

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    The document provides initial and future financial conditions for a firm over a 5 year period including revenue, costs, assets, liabilities, tax rates, and capital expenditures. It also includes a cash flow statement showing revenue, expenses, taxes, depreciation, capital expenditures, changes in working capital and free cash flows projected over 5 years with a terminal value calculated in year 5. The net present value of the projected free cash flows is calculated to be $30 using a discount rate of 6%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    25 views1 page

    Cashflow Example

    Uploaded by

    manikandan039715
    The document provides initial and future financial conditions for a firm over a 5 year period including revenue, costs, assets, liabilities, tax rates, and capital expenditures. It also includes a cash flow statement showing revenue, expenses, taxes, depreciation, capital expenditures, changes in working capital and free cash flows projected over 5 years with a terminal value calculated in year 5. The net present value of the projected free cash flows is calculated to be $30 using a discount rate of 6%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Initial Firm Conditions

    Revenue $
    COGS
    $
    SG&A
    $
    AR
    Inventory
    AP

    $
    $
    $

    Future Firm Conditions


    35.00 Revenue Growth
    22.00 COGS Growth
    2.00 SG&A Growth

    Rates
    8% tax rate
    6% Disc Rate
    2%

    35%
    14%

    4.00 Onetime AR increase $ 2.00 Capital Expenditure


    5.00 Terminal Value
    $ 30.00 Intitial investment
    3.00 Terminal Value Year
    5 Expected life

    Annual Depreciation of Equipment

    $ 20.00
    5

    4.00

    Time
    Working Capital
    Change in WC

    0
    6

    1
    8
    2

    2
    8
    0

    3
    8
    0

    4
    8
    0

    Time
    Revenue
    COGS
    SG&A Expenses
    Depreciation
    Operating Profit
    Tax @ 35%
    NOPAT
    Depreciation
    CAPEX
    Change in WC
    Free Cashflow (FCF)
    PV (FCF)
    PV (Terminal Value
    NPV
    NPV

    1
    35.00
    (22.00)
    (2.00)
    (4.00)
    7.00
    (2.45)
    4.55
    4.00

    (2.00)
    6.55
    $5.75

    2
    37.80
    (23.32)
    (2.04)
    (4.00)
    8.44
    (2.95)
    5.49
    4.00

    9.49
    $7.30

    3
    40.82
    (24.72)
    (2.08)
    (4.00)
    10.02
    (3.51)
    6.52
    4.00

    10.52
    $7.10

    4
    44.09
    (26.20)
    (2.12)
    (4.00)
    11.77
    (4.12)
    7.65
    4.00

    11.65
    $6.90

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    (20.00)

    (20.00)
    (20.00)

    29.31
    29.31

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    5
    8 (AR + INV AP)
    0 WC(this period) WC(last period)

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    5
    47.62
    (27.77)
    (2.16)
    (4.00)
    13.68
    (4.79)
    8.89
    4.00

    12.89
    $6.69
    $15.58

    30

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