7 1 2

Units 2,000 2,200

Unit price 18
Unit COGS 9
Tax rate 35%
r 10%

a) Cash flow from operations

0 1 2
Sales 36,000 39,600
COGS 18,000 19,800
Gross profit 18,000 19,800
Depreciation 10,000 10,000
EBT 8,000 9,800

NOPAT 5,200 6,370

Depreciation 10,000 10,000
CFO 15,200 16,370

b) Capex
0 1 2
Investment in machine ( 30,000)

c) Working capital
Cash 2%
A/R 4%
Inventory 9%
A/P 5%
0 1 2
Sales - 36,000 39,600
Cash - 720 792
A/R - 1,440 1,584
Inventory - 3,240 3,564
A/P - 1,800 1,980
NWC - 3,600 3,960

Change in WC ( 3,600) ( 360) ( 396)

4 Answer: FCF ( 33,600)

4 Answer: 14,840
4 Answer: 15,974
4 Answer:
 3 1 2
2,420 Units 2,000 2,200
Unit price 18
Unit COGS 9
Tax rate 35%
r 10%

a) Cash flow from operations

3 0 1 2
43,560 Sales 36,000 39,600
21,780 COGS 18,000 19,800
21,780 Gross profit 18,000 19,800
10,000 Depreciation 10,000 10,000
11,780 EBT 8,000 9,800

7,657 NOPAT 5,200 6,370

10,000 Depreciation 10,000 10,000
17,657 CFO 15,200 16,370

b) Capex
3 0 1 2
Investment in machi (30,000)

c) Working capital
Cash 2%
A/R 4%
Inventory 9%
A/P 5%
3 0 1 2
43,560 Sales - 36,000 39,600
871 Cash - 720 792
1,742 A/R - 1,440 1,584
3,920 Inventory - 3,240 3,564
2,178 A/P - 1,800 1,980
4,356 NWC - 3,600 3,960

4,356 Change in WC ( 3,600) ( 360)

Answer: FCF (30,000)

Answer: 11,600
Answer: 16,010
22,013 Answer:
Cost of capital 44% - 171,940,269.47 25%
Revenue increase 121%
Oprationnal Cost 23%
Maintenance Cost first 4 7%
Maintenance Cost last 4 6%

Year 0 Year 1
2009 2010
Total sales revenues 400,000,000.00
Operational cost 92,000,000.00
Maintenance cost 28,000,000.00
Total Cost 120,000,000.00
EBITDA 280,000,000.00
Depreciation expenses - 125,850,000.00
EBIT 154,150,000.00
TAX 32% - 49,328,000.00
NOPAT 104,822,000.00
Add Back Depreciation expenses 230,672,000.00

Cash flow from operations ###

Year 0 Year 1
2009 2010
Cash flow from operations 230,672,000
WORKING CAPITAL
Working capital 40,000,000
Change in working capital -40,000,000 -10,000,000
CAPEX
Investment -839,000,000
TOTAL CAPEX -839,000,000 0
FCF

FREE CASH FLOWS (FCF) -879,000,000 220,672,000

-879,000,000 153244444.444444
NPV -171,940,269
Year 0 Year 1
2009 2010
EVA - 264,338,000.00
MVA - 367,712,108.10 - 183,568,055.56

PI -20.49% 583485590.738031

Break-even
Actual rate value
Cost of capital 20% 36%
Revenue increase 21% 0%
Oprationnal Cost 23% 54%
Maintenance Cost first 4 7% 71%
Maintenance Cost last 4 6% 67%

NPV ('000 000)

Cost of capital NPV ('000 000)
0% 2720.67343601
3000
4% 2044.0901276005
8% 1530.9579156539
2500
12% 1135.9071061298
16% 2000
827.4724233126
20% 583.485590738 NPV
1500
24% 388.0969491534
28% 229.8172315784
1000
32% 100.2095207527
36% 500 0
40% -96.5194193514
44% 0
-171.9402694721
0% 5% 10%15%20%25%30%35%40%45%50%
-500
 114 110

Year 2 Year 3 Year 4 Year 5

2011 2012 2013 2014
484,000,000.00 585,640,000.00 708,624,400.00 857,435,524.00
111,320,000.00 134,697,200.00 162,983,612.00 197,210,170.52
33,880,000.00 40,994,800.00 49,603,708.00 51,446,131.44
145,200,000.00 175,692,000.00 212,587,320.00 248,656,301.96
338,800,000.00 409,948,000.00 496,037,080.00 608,779,222.04
- 209,750,000.00 - 151,020,000.00 - 117,460,000.00 - 75,510,000.00
129,050,000.00 258,928,000.00 378,577,080.00 533,269,222.04
- 41,296,000.00 - 82,856,960.00 - 121,144,665.60 - 170,646,151.05
87,754,000.00 176,071,040.00 257,432,414.40 362,623,070.99
297,504,000.00 327,091,040.00 374,892,414.40 438,133,070.99

### ### ### ###

Year 2 Year 3 Year 4 Year 5
2011 2012 2013 2014
297,504,000 327,091,040 374,892,414 438,133,071

50,000,000 60,000,000 70,000,000 77,000,000

-10,000,000 -10,000,000 -7,000,000 5,000,000

0 0 0 0

287,504,000 317,091,040 367,892,414 443,133,071

138649691.358025 106193147.719479 85560017.5129315 71568464.9275551

Year 2 Year 3 Year 4 Year 5

2011 2012 2013 2014
- 281,406,000.00 - 193,088,960.00 - 111,727,585.60 - 6,536,929.01
- 135,708,912.04 - 64,665,102.02 - 25,984,265.53 - 1,055,750.53
000 000)

NPV ('000 000)

%40%45%50%
 Year 6 Year 7 Year 8
2015 2016 2017
1,037,496,984.04 1,255,371,350.69 1,518,999,334.33
238,624,306.33 288,735,410.66 349,369,846.90
62,249,819.04 75,322,281.04 91,139,960.06
300,874,125.37 364,057,691.70 440,509,806.96
736,622,858.67 891,313,658.99 1,078,489,527.38
- 75,510,000.00 - 50,340,000.00 - 33,560,000.00
661,112,858.67 840,973,658.99 1,044,929,527.38
- 211,556,114.77 - 269,111,570.88 - 334,377,448.76
449,556,743.89 571,862,088.11 710,552,078.62
525,066,743.89 622,202,088.11 744,112,078.62

### ### ###

Year 6 Year 7 Year 8
2015 2016 2017
525,066,744 622,202,088 744,112,079

72,000,000 68,000,000 63,000,000

4,000,000 5,000,000 63,000,000

0 0 0

529,066,744 627,202,088 807,112,079

59338356.1529972 48850616.7198664 43654991.6926229

Year 6 Year 7 Year 8

2015 2016 2017
80,396,743.89 202,702,088.11 341,392,078.62
9,017,029.85 15,787,769.53 18,465,178.20
Cost of capital 17% 17% 25%
Revenue increase 121%
Oprationnal Cost 23%
Maintenance Cost first 4 7%
Maintenance Cost last 4 6%

Year 0 Year 1
2009 2010
Total sales revenues 400,000,000.00
Operational cost 92,000,000.00
Maintenance cost 28,000,000.00
Total Cost 120,000,000.00
EBITDA 280,000,000.00
Depreciation expenses - 125,850,000.00
EBIT 154,150,000.00
TAX 32% - 49,328,000.00
NOPAT 104,822,000.00
Add Back Depreciation expenses 230,672,000.00
Cash flow from
###
operations
Year 0 Year 1
2009 2010
Cash flow from operations 230,672,000
WORKING CAPITAL
Working capital 40,000,000
Change in working capital -40,000,000 -10,000,000
CAPEX
Investment -839,000,000
TOTAL CAPEX -839,000,000 0
FCF

FREE CASH FLOWS (FCF) ### 220,672,000

-879,000,000 188608547.008547
NPV 761,142,929
Year 0 Year 1
2009 2010
EVA - 37,808,000.00
MVA 534,487,251.36 - 32,314,529.91

PI 90.72% 583485590.738031
 114 110

Year 2 Year 3 Year 4 Year 5

2011 2012 2013 2014
484,000,000.00 585,640,000.00 708,624,400.00 857,435,524.00
111,320,000.00 134,697,200.00 162,983,612.00 197,210,170.52
33,880,000.00 40,994,800.00 49,603,708.00 51,446,131.44
145,200,000.00 175,692,000.00 212,587,320.00 248,656,301.96
338,800,000.00 409,948,000.00 496,037,080.00 608,779,222.04
- 209,750,000.00 - 151,020,000.00 - 117,460,000.00 - 75,510,000.00
129,050,000.00 258,928,000.00 378,577,080.00 533,269,222.04
- 41,296,000.00 - 82,856,960.00 - 121,144,665.60 - 170,646,151.05
87,754,000.00 176,071,040.00 257,432,414.40 362,623,070.99
297,504,000.00 327,091,040.00 374,892,414.40 438,133,070.99

### ### ### ###

Year 2 Year 3 Year 4 Year 5
2011 2012 2013 2014
297,504,000 327,091,040 374,892,414 438,133,071

50,000,000 60,000,000 70,000,000 77,000,000

-10,000,000 -10,000,000 -7,000,000 5,000,000

0 0 0 0

287,504,000 317,091,040 367,892,414 443,133,071

210025567.974286 197982309.084654 196325804.689173 202117935.646177

Year 2 Year 3 Year 4 Year 5

2011 2012 2013 2014
- 54,876,000.00 33,441,040.00 114,802,414.40 219,993,070.99
- 40,087,661.63 20,879,600.75 61,264,313.98 100,341,293.11
 Year 6 Year 7 Year 8
2015 2016 2017
1,037,496,984.04 1,255,371,350.69 1,518,999,334.33
238,624,306.33 288,735,410.66 349,369,846.90
62,249,819.04 75,322,281.04 91,139,960.06
300,874,125.37 364,057,691.70 440,509,806.96
736,622,858.67 891,313,658.99 1,078,489,527.38
- 75,510,000.00 - 50,340,000.00 - 33,560,000.00
661,112,858.67 840,973,658.99 1,044,929,527.38
- 211,556,114.77 - 269,111,570.88 - 334,377,448.76
449,556,743.89 571,862,088.11 710,552,078.62
525,066,743.89 622,202,088.11 744,112,078.62

### ### ###

Year 6 Year 7 Year 8
2015 2016 2017
525,066,744 622,202,088 744,112,079

72,000,000 68,000,000 63,000,000

4,000,000 5,000,000 63,000,000

0 0 0

529,066,744 627,202,088 807,112,079

206250634.376409 208980836.552338 229851293.815581

Year 6 Year 7 Year 8

2015 2016 2017
306,926,743.89 429,232,088.11 567,922,078.62
119,651,889.61 143,018,147.66 161,734,197.78
Cost of capital 25% 17% 25%
Revenue increase 121%
Oprationnal Cost 23%
Maintenance Cost first 4 7%
Maintenance Cost last 4 6%

Year 0 Year 1
2009 2010
Total sales revenues 400,000,000.00
Operational cost 92,000,000.00
Maintenance cost 28,000,000.00
Total Cost 120,000,000.00
EBITDA 280,000,000.00
Depreciation expenses - 125,850,000.00
EBIT 154,150,000.00
TAX 32% - 49,328,000.00
NOPAT 104,822,000.00
Add Back Depreciation expenses 230,672,000.00
Cash flow from
###
operations
Year 0 Year 1
2009 2010
Cash flow from operations 230,672,000
WORKING CAPITAL
Working capital 40,000,000
Change in working capital -40,000,000 -10,000,000
CAPEX
Investment -839,000,000
TOTAL CAPEX -839,000,000 0
FCF

FREE CASH FLOWS (FCF) ### 220,672,000

-879,000,000 176537600
NPV 345,421,771
Year 0 Year 1
2009 2010
EVA - 104,928,000.00
MVA 113,185,651.83 - 83,942,400.00

PI 41.17% 583485590.738031
 114 110

Year 2 Year 3 Year 4 Year 5

2011 2012 2013 2014
484,000,000.00 585,640,000.00 708,624,400.00 857,435,524.00
111,320,000.00 134,697,200.00 162,983,612.00 197,210,170.52
33,880,000.00 40,994,800.00 49,603,708.00 51,446,131.44
145,200,000.00 175,692,000.00 212,587,320.00 248,656,301.96
338,800,000.00 409,948,000.00 496,037,080.00 608,779,222.04
- 209,750,000.00 - 151,020,000.00 - 117,460,000.00 - 75,510,000.00
129,050,000.00 258,928,000.00 378,577,080.00 533,269,222.04
- 41,296,000.00 - 82,856,960.00 - 121,144,665.60 - 170,646,151.05
87,754,000.00 176,071,040.00 257,432,414.40 362,623,070.99
297,504,000.00 327,091,040.00 374,892,414.40 438,133,070.99

### ### ### ###

Year 2 Year 3 Year 4 Year 5
2011 2012 2013 2014
297,504,000 327,091,040 374,892,414 438,133,071

50,000,000 60,000,000 70,000,000 77,000,000

-10,000,000 -10,000,000 -7,000,000 5,000,000

0 0 0 0

287,504,000 317,091,040 367,892,414 443,133,071

184002560 162350612.48 150688732.93824 145205844.701086

Year 2 Year 3 Year 4 Year 5

2011 2012 2013 2014
- 121,996,000.00 - 33,678,960.00 47,682,414.40 152,873,070.99
- 78,077,440.00 - 17,243,627.52 19,530,716.94 50,093,447.90
 Year 6 Year 7 Year 8
2015 2016 2017
1,037,496,984.04 1,255,371,350.69 1,518,999,334.33
238,624,306.33 288,735,410.66 349,369,846.90
62,249,819.04 75,322,281.04 91,139,960.06
300,874,125.37 364,057,691.70 440,509,806.96
736,622,858.67 891,313,658.99 1,078,489,527.38
- 75,510,000.00 - 50,340,000.00 - 33,560,000.00
661,112,858.67 840,973,658.99 1,044,929,527.38
- 211,556,114.77 - 269,111,570.88 - 334,377,448.76
449,556,743.89 571,862,088.11 710,552,078.62
525,066,743.89 622,202,088.11 744,112,078.62

### ### ###

Year 6 Year 7 Year 8
2015 2016 2017
525,066,744 622,202,088 744,112,079

72,000,000 68,000,000 63,000,000

4,000,000 5,000,000 63,000,000

0 0 0

529,066,744 627,202,088 807,112,079

138691672.511483 131533811.348901 135410936.791489

Year 6 Year 7 Year 8

2015 2016 2017
239,806,743.89 362,112,088.11 500,802,078.62
62,863,899.07 75,940,408.98 84,020,646.46