YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL EBITDA 48,507 56,308 56,946 57,567 73,271
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Question:
YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | TOTAL | |
EBITDA | 48,507 | 56,308 | 56,946 | 57,567 | 73,271 | 292,599 |
Less | ||||||
Amortization: | 917 | 917 | 917 | 917 | 917 | 4,585 |
917 | 917 | 917 | 917 | 917 | 4,585 | |
Income/(loss) before taxes: | 47,590 | 55,391 | 56,029 | 56,650 | 72,354 | 288,014 |
Income taxes 40% | 19,036 | 22,156 | 22,412 | 22,660 | 28,942 | 115,206 |
Net Income | 28,554 | 33,235 | 33,617 | 33,990 | 43,412 | 172,808 |
Add - Back Amortization | 917 | 917 | 917 | 917 | 917 | 4,585 |
Cash Flow | 29,471 | 34,152 | 34,534 | 34,907 | 44,329 | 177,393 |
Assume that you are at day 1 of Year 1.
Assume a discount rate of 20%.
Required: (Document your answer for each item)
- Calculate the present value for each year.
- Determine the Residual Value (Year 5 earning discounted)
- Calculate the Total Discounted Cash Flow.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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