Discounted Cash Flow Analysis Using W

RWACC = 10%
Revenue = $ 200,000
Expenses = $ 100,000
LT Invest = $ 60,000
NWC(0) = $ 50,000
Tc= 35.0%
g1 -g10 = 10.0% 20% 16.0% 12.8%
g11 = 2.0%
Depreciation (Straight Line) 40

0 1 2 3
Revenues $ 200,000 $ 240,000 $ 278,400
-Expenses $ (100,000) $ (120,000) $ (139,200)
-Depr/Depl/Amort $ (1,500) $ (1,500) $ (1,500)
= EBT $ 98,500 $ 118,500 $ 137,700
- Taxes $ (34,475) $ (41,475) $ (48,195)
= Net Income $ 64,025 $ 77,025 $ 89,505
+Depr/Depl/Amort $ 1,500 $ 1,500 $ 1,500
=OCF $ 65,525 $ 78,525 $ 91,005
-LT Invest $ (60,000)
- ST invest $ (50,000)
=ATICF $ (110,000) 65,525 78,525 91,005
Discount Factors 1 1.0996 1.20912016 1.3295485279
DCFs = (110,000.00) 59,589.85 64,943.92 68,448.05
NPV = $1,273,082.23
$1,273,082.23

IRR 1,383,082.23
Cash Flow Analysis Using Weighted Average Cost of Capital
10.2% 8.2%
4 5
$ 314,035 $ 346,192
$ (157,018) $ (173,096)
$ (1,500) $ (1,500)
$ 155,518 $ 171,596
$ (54,431) $ (60,059)
$ 101,086 $ 111,538
$ 1,500 $ 1,500
$ 102,586 $ 113,038
102,586 113,038
1.4619715613 1.6075839288
70,169.93 70,315.17
6.6% 5.2%
6 7
$ 374,552 $ 399,099
$ (187,276) $ (199,550)
$ (1,500) $ (1,500)
$ 185,776 $ 198,050
$ (65,022) $ (69,317)
$ 120,755 $ 128,732
$ 1,500 $ 1,500
$ 122,255 $ 130,232
122,255 130,232
1.7676992881 1.9437621372
69,160.27 67,000.08
4.2% 3.4%
8 9
$ 420,023 $ 437,641
$ (210,012) $ (218,820)
$ (1,500) $ (1,500)
$ 208,512 $ 217,320
$ (72,979) $ (76,062)
$ 135,533 $ 141,258
$ 1,500 $ 1,500
$ 137,033 $ 142,758
Terminal Value=
137,033 142,758
2.1373608461 2.3502419864
64,113.00 60,741.90
 2.7%

10
$ 452,325
$ (226,163)
$ (1,500)
$ 224,663
$ (78,632)
$ 146,031
$ 1,500
$ 147,531
$ 1,890,469

2,038,000
2.5843260882
788,600.06
 Weighted Average Cost of Capital

Rf= 2.0%
MRP = 6.0%
Beta = 2.0
R e= 14%
Debt = $400,000
Equity = $600,000
Tc= 35%
Rd = 6%
Wd= 40%
We= 60%

R wacc = 9.9600%