Beruflich Dokumente
Kultur Dokumente
22,500
2,500
1,100
1,400
660
No. Of Stores
Increase in Annual Growth Revenue
Free Cash Flow Growth
Upfront Investment Required
30
10% Over 5yrs
5%
1.5 million
Exhibit 2 Projections of Incremental Expected Sales and Cash Flows for Home Delivery
Project 2002-2006 (in thousands of dollars).
Sales
EBITDa
Depreciation
EBIT
Tax Expense
EBIATa
CAPXb
Investment in Working Capital
2002E
2003E
2004E
2005E
2006E
1,200
2,400
3,900
5,600
7,500
180
360
585
840
1,125
(200)
(20)
8
(12)
(225)
135
(54)
81
(250)
335
(134)
201
(275)
565
(226)
339
(300)
825
(330)
495
300
300
300
300
300
Annual capital expenditures of $300,000 were in addition to the initial $1.5 million outlay, and are assumed to
remain constant in perpetuity.
b
5.0%
6.8%
7.2%
40%
0.25
1.50
1.5
5%
5%
7.20%
15.80%
1500
6.80%
0.25
Exhibit 2
Years
2002E
2003E
2004E
2005E
Sales
EBITDa
1,200
180
2,400
360
3,900
585
5,600
840
Depreciation
EBIT
Tax Expense
EBIATa
(200)
(20)
8
(12)
(225)
135
(54)
81
(250)
335
(134)
201
(275)
565
(226)
339
300
300
300
300
(112)
0.86
-96.72
6
0.75
4.47
151
0.64
97.24
314
0.56
174.62
Initial Investment
0
(1500)
CAPXb
Investment in Working
Capital
Free Cash Flow
Discount Factor
Present Value
1.00
-1500
14.49% DF @ 14.49%
PV
2728.49
1228.49
1228.49
Target D/E
Target D/V
New Equity Beta
New Equity Return
0.33
0.25
1.80
17.94%
2006E
Terminal Value
7,500
1,125
(300)
825
(330)
495
300
0
495
0.48
237.72
4812.50
0.48
2311.15
0.5083492921
251.6328996067
0.5083492921
2784.1364023922
Asset Beta
Cash Flow Growth rate
Risk Free Rate of Return
Market Risk Premium
Cost Of Equity
Initial Investment
Cost of Debt
Project Debt Beta (d)
Additional Debt
Debt
Cost of Debt
Interest Paid
Tax
Tax Benefit
Debt Tax Shield
Present Value of Firm
1.5
5%
5%
7.20%
15.80%
1500
6.80%
0.25
750
750
6.80%
51
40%
20.40
300
1528.49
20.4
20.4
300
5%
40%
1.5
0.25
6.80%
5%
7.20%
25%
75%
1.92
18.80%
15.12%
5%
40%
1.5
0.25
6.80%
5%
7.20%
50%
50%
1.83
18.20%
11.14%
Years
5%
40%
1.5
0.25
6.80%
5%
7.20%
75%
25%
1.75
17.60%
7.46%
2002E
2003E
Sales
EBITDa
1,200
180
2,400
360
Depreciation
EBIT
Tax Expense
EBIATa
(200)
(20)
8
(12)
(225)
135
(54)
81
300
300
(112)
Initial Investment
(1500)
CAPXb
Investment in Working
Capital
Free Cash Flow
Discounting Factor WACC = 15.12%)
Present Value
1.000
-1500.00
0.869
-97.290
0.755
4.53
1.000
-1500.00
0.900
-100.77
0.810
4.86
1.000
0.931
-1500.00 -104.225
0.866
5.20
25% Debt
NPV Case - 1
NPV Case - 2
NPV Case - 3
1469.97
2040.53
2687.67
50% Debt
3116.52
4003.79
5010.91
75% Debt
9379.56
11471.49
13847.90
2004E
2005E
2006E
Terminal Value
(25% Debt)
Terminal Value
(50% Debt)
Terminal Value
(75% Debt)
3,900
585
5,600
840
7,500
1,125
(250)
335
(134)
201
(275)
565
(226)
339
(300)
825
(330)
495
300
300
300
151
314
495
5135.87
8464.98
21128.05
0.655
98.97
0.569
178.78
0.495
244.82
0.495
2540.15
0.495
4186.70
0.495
10449.74
0.728
109.99
0.655
205.80
0.590
291.91
0.590
3028.74
0.590
4992.00
0.590
12459.70
0.806
121.68
0.750
235.47
0.698
345.44
0.698
3584.10
0.698
5907.34
0.698
14744.34