(All amounts in billions in BDT) Year 0 Year 1 Year 2

Net Sales (5% yearly growth till Y5, 100*1.05 =

100
0% growth from Y6 to infinity) 105
Operating Profit Margin (before
dep.) [10% margin of Net Sales till 100*10% = 10 105*10% =
Y3, 12% margin of Net Sales from Y4 10.5
to infinity]
Lost Contribution - 8.0 - 8.0
- Depreciation (40 bil./20 Years) - 2.0 - 2.0
Operating Profit before Tax 0.0 0.5
Tax (30%) 0.0 - 0.15
NOPAT 0.0 0.35

(All amounts in billions in BDT) Year 0 Year 1 Year 2

NOPAT 0.0 0.35
Initial Investment - 40
+ Depreciation 2.0 2.0
Sustaining CAPEX - 2.0 - 2.0
Change in Working Capital (Working - 10 - 0.5 - 0.5
1)
Free Cash Flow - 50 - 0.50 - 0.15

(All amounts in billions in BDT) Year 0 Year 1 Year 2

Free Cash Flow - 50 - 0.50 - 0.15
Terminal Value (Y5
FCF/WACC)
Total amount to discount - 50 - 0.50 - 0.15
1/(1+.085)^0= 1/(1+.085)^1= 1/(1+.085)^2=
Discount Factor [1/(1+WACC)^year] 1 0.922 0.849

- 50 x 1 = - 50

- 0.50 x 0.922
= - 0.46
Present Values at Year 0 (Amount - 0.15 x 0.849
to Disc. x Disc Fact.) = - 0.13
3.62 x 0.783 =
2.83
111.37x 0.722
= 80.36
Sum of Present Values (Y1 to Y4) -0.46 + -0.13 + 2.83 + 80.36 = 82.61
Net Present Value - 50 + 82.61 = 32.61
 Working 1 - Change in Working Capital (WC) Calculatio
(All amounts in billions in BDT) Year 0 Year 1 Year 2
Net Sales (5% yearly growth till Y5, 100*1.05 =
0% growth from Y6 to infinity) 100 105

Required WC 105*10% =
(10% x Net Sales of following year) 100*10% = 10 10.5 110*10% = 11

Change in WC 10-0 = 10 10.5-10 = 0.5 11-10.5 = 0.5

(All amounts in billions in BDT) Year 0 Year 1 Year 2

Free Cash Flow - 50 - 0.50 - 0.15
Terminal Value
(Y6 FCF/WACC)
Total lamount to discount - 50 - 0.50 - 0.15
Discount Factor 1/(1+.085)^0= 1/(1+.085)^1= 1/(1+.085)^2=
[1/(1+WACC)^year] 1 0.922 0.849

- 50 x 1 = - 50

- 0.50 x 0.922
= - 0.46
- 0.15 x 0.849
Present Values at Year 0 (Amount = - 0.13
to Disc. x Disc Fact.) 3.62 x 0.783 =
2.83
7.72 x 0.722 =
5.57
112.46 x 0.665
= 74.49
Sum of Present Values (Y1 to Y5) -0.46 + -0.13 + 2.83 + 5.57 + 74.49 = 82.3
Net Present Value - 50 + 82.3 = 32.3
8.5 2.1
0.4
0.6
3.5

6.4
16
 Year 3 Year 4 Year 5 Year 6
105*1.05 = 116*1.05 = (0% growth)
110 110*1.05 = 116 122 122

110*10% = 11 116*12% = 122*12% = 122*12% =

13.9 14.6 14.6

- 3.0 - - -
- 2.0 - 2.0 - 2.0 - 2.0
6.03 11.89 12.59 12.59
- 1.81 - 3.57 - 3.78 - 3.78
4.22 8.32 8.81 8.81

Year 3 Year 4 Year 5 Year 6

4.22 8.32 8.81 8.81

2.0 2.0 2.0 2.0

- 2.0 - 2.0 - 2.0 - 2.0
- 0.6 - 0.6 0.0 0.0

3.62 7.72 8.81 8.81

Year 3 Year 4 Year 5 Year 6

3.62 7.72 8.81 8.81
8.81/0.085 =
103.65
3.62 111.37
1/(1+.085)^3= 1/(1+.085)^4=
0.783 0.722
Working Capital (WC) Calculation
Year 3 Year 4 Year 5 Year 6 Year 7
105*1.05 = 116*1.05 =
110 110*1.05 = 116 122 122 122

116*10% = 122*10% = 122*10% = 122*10% =

11.6 12.2 12.2 12.2 -

12.2-12.2 = 12.2-12.2 =
11.6-11 = 0.6 12.2-11.6 = 0.6 -
0.0 0.0

Year 3 Year 4 Year 5 Year 6

3.62 7.72 8.81 8.81
8.81/0.085 =
103.65
3.62 7.72 112.46
1/(1+.085)^3= 1/(1+.085)^4= 1/(1+.085)^5=
0.783 0.722 0.665
 (All amounts in billions in BDT) Year 0 Year 1 Year 2
Net Sales (5% yearly growth till Y5, 100*1.05 =
0% growth from Y6 to infinity) 100
105
Operating Profit Margin (before
dep.) [10% margin of Net Sales till 105*10% =
100*10% = 10
Y3, 12% margin of Net Sales from Y4 10.5
to infinity]
Lost Contribution - 8.0 - 8.0
- Depreciation (40 bil./20 Years) - 2.0 - 2.0
Operating Profit before Tax 0.0 0.5
Tax (30%) 0.0 - 0.15
NOPAT 0.0 0.35

(All amounts in billions in BDT) Year 0 Year 1 Year 2

NOPAT 0.0 0.35
Initial Investment - 40
+ Depreciation 2.0 2.0
Sustaining CAPEX - 2.0 - 2.0
Change in Working Capital (Working - 10 - 0.5 - 0.5
1)
Free Cash Flow - 50 - 0.50 - 0.15

(All amounts in billions in BDT) Year 0 Year 1 Year 2

Free Cash Flow - 50 - 0.50 - 0.15
Terminal Value (Y5
FCF/WACC) (Y5- Infinity)
Total amount to discount - 50 - 0.50 - 0.15
1/(1+.085)^0= 1/(1+.085)^1= 1/(1+.085)^2=
Discount Factor [1/(1+WACC)^year] 1 0.922 0.849

- 50 x 1 = - 50

- 0.50 x 0.922
= - 0.46
Present Values at Year 0 (Amount - 0.15 x 0.849
to Disc. x Disc Fact.) = - 0.13
3.62 x 0.783 =
2.83
111.37x 0.722
= 80.36
Sum of Present Values (Y1 to Y4) -0.46 + -0.13 + 2.83 + 80.36 = 82.61
Net Present Value - 50 + 82.61 = 32.61
 Working 1 - Change in Working Capital (WC) Calculatio
(All amounts in billions in BDT) Year 0 Year 1 Year 2
Net Sales (5% yearly growth till Y5, 100*1.05 =
0% growth from Y6 to infinity) 100 105

Required WC 105*10% =
(10% x Net Sales of following year) 100*10% = 10 10.5 110*10% = 11

Change in WC 10-0 = 10 10.5-10 = 0.5 11-10.5 = 0.5

(All amounts in billions in BDT) Year 0 Year 1 Year 2

Free Cash Flow - 50 - 0.50 - 0.15
Terminal Value
(Y6 FCF/WACC)
Total lamount to discount - 50 - 0.50 - 0.15
Discount Factor 1/(1+.085)^0= 1/(1+.085)^1= 1/(1+.085)^2=
[1/(1+WACC)^year] 1 0.922 0.849

- 50 x 1 = - 50

- 0.50 x 0.922
= - 0.46
- 0.15 x 0.849
Present Values at Year 0 (Amount = - 0.13
to Disc. x Disc Fact.) 3.62 x 0.783 =
2.83
7.72 x 0.722 =
5.57
112.46 x 0.665
= 74.49
Sum of Present Values (Y1 to Y5) -0.46 + -0.13 + 2.83 + 5.57 + 74.49 = 82.3
Net Present Value - 50 + 82.3 = 32.3
8.5 2.1
0.4
0.6
3.5

6.4
16
 Year 3 Year 4 Year 5 Year 6
105*1.05 = 116*1.05 = (0% growth)
110 110*1.05 = 116 122 122

116*12% = 122*12% = 122*12% =

110*10% = 11
13.9 14.6 14.6

- 3.0 - - -
- 2.0 - 2.0 - 2.0 - 2.0
6.03 11.89 12.59 12.59
- 1.81 - 3.57 - 3.78 - 3.78
4.22 8.32 8.81 8.81

Year 3 Year 4 Year 5 Year 6

4.22 8.32 8.81 8.81

2.0 2.0 2.0 2.0

- 2.0 - 2.0 - 2.0 - 2.0
- 0.6 - 0.6 0.0 0.0

3.62 7.72 8.81 8.81

Year 3 Year 4 Year 5 Year 6

3.62 7.72 8.81 8.81
8.81/0.085 =
103.65 Year 1 Year 2
3.62 111.37
1/(1+.085)^3= 1/(1+.085)^4=
0.783 0.722
Working Capital (WC) Calculation
Year 3 Year 4 Year 5 Year 6 Year 7
105*1.05 = 116*1.05 =
110 110*1.05 = 116 122 122 122

116*10% = 122*10% = 122*10% = 122*10% =

11.6 12.2 12.2 12.2 -

12.2-12.2 = 12.2-12.2 =
11.6-11 = 0.6 12.2-11.6 = 0.6 -
0.0 0.0

Year 3 Year 4 Year 5 Year 6

3.62 7.72 8.81 8.81
8.81/0.085 =
103.65
3.62 7.72 112.46
1/(1+.085)^3= 1/(1+.085)^4= 1/(1+.085)^5=
0.783 0.722 0.665