1987 1988 1989 1990

Net Sales 5,000 5,000 5,300 5,618

COGS 3,075 2,921 3,097 3,282
Gross Profit 1,925 2,079 2,203 2,336

Total Expense 1,550 1,395 1,479 1,567

EBIT 375 684 725 768

Interest 100 100 106 112
IBT 275 584 619 656
Tax 104 221 234 248
Net Income 171 363 385 408
Dividends 96 96 96 96
Retained Earnings 75 267 289 312

Asset
Cash 88 355 376 399
Receivable 1,600 1,600 1,696 1,798
Inventory 1,500 1,425 1,511 1,601
Prepaid Expense 62 59 62 66
Current Assets 3,250 3,439 3,645 3,864
Fixed Assets 1,250 1,250 1,325 1,405
Total Assets 4,500 4,689 4,970 5,268

Liabilities
Bank Loans 250 250 265 281
Accounts Payable 500 475 504 534
CP of Long-Term Debt 50 50 50 50
Other 450 450 450 450
Current Liabilities 1,250 1,225 1,269 1,315
Long Term Debt 1,000 950 900 850
Total Liabilities 2,250 2,175 2,169 2,165
Common Stock 100 100 100 100
Paid-in Capital 300 300 300 300
Retained Earnings 1,850 2,117 2,406 2,718
Total L and Net Worth 4,500 4,692 4,974 5,282

Change in WC 50 214 163 173

Capital Exp. 190 201.4 213.484 226.293
Depreciation 165 175 185 197 WACC
FCF 196 223 300 318 TV
PV FCF 196 199 240 228 PV TV
FCF Growth % 13.57% 34.70% 6.00%
NPV 3,875
0.1178
4,208
3,013