0 1 2 3 4

Sales 50,000 55,000 60,500 66,550

COGS 35,000 38,500 42,350 46,585
Depreciation 5,500 5,500 5,500 5,500

(EBIT) 9,500 11,000 12,650 14,465

Tax on EBIT 4,750 5,500 6,325 7,233
EBIAT 4,750 5,500 6,325 7,233

Add depreciation 5,500 5,500 5,500 5,500

Gross cash flow from operations 10,250 11,000 11,825 12,733

Less investments into: Fixed assets 110,000 - - - -

Unlevered free cash flows (UFCF) (110,000) 10,250 11,000 11,825 12,733

7.3% 7.5% 7.7%

WACC 13.33%
Unlevered terminal value (UTV) 141,876

PV of UFCF (years 1-4) at WACC 33,449

PV of UTV at WACC 85,996
VL 119,445
(110,000)
NPVL 9,445

1
 D 53,087
Equity investment 56,913
Equity value 66,358

2
 5

69,212
48,448
5,720

15,044
7,522
7,522

5,720

13,242
-

13,242

4.0%