7 8 Sales growth (gross): 9 Operating PM 10 Fixed capital investment rate 11 WC inv rate 12 Cash tax rate 13 COC 14 Market securities 15 Debt 16 # shares outstanding 17 18 19 20 Sales 21 Operating Profit 22 NOPAT 23 New Investment 24 Add'l WC 25 Free cash flow 26 PV to year 10 27 Pv after year 10 Base year 1.45 20% 20% 10% 21% 12% $15,000 $50,000 10,000,000 Fade rate 0.04 1% Yr. 10 and after 1.05 10% Year 1 Year 2 Year 3 $282,000.00 $386,340.00 $513,832.20 Note: Fade rate is the year-to-year reduction in the rate to some steady state rate Year 1 growth (grosss) = 1.41, year 2 growth (gross) =1.37, etc. Note: on a per $ of sales basis Note: on a per $ of sales basis (all dollars in thousands) Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Residual 7 8 Sales growth (gross): 9 Operating PM 10 Fixed capital investment rate 11 WC inv rate 12 Cash tax rate 13 COC 14 Market securities 15 Debt 16 # shares outstanding 17 18 19 20 Sales 21 Operating Profit 22 NOPAT 23 New Investment 24 Add'l WC 25 Free cash flow 26 PV to year 10 27 Pv after year 10 Base year 1.45 20% 20% 10% 21% 12% $15,000 $50,000 10,000,000 Fade rate 0.04 1% Yr. 10 and after 1.05 10% Year 1 Year 2 Year 3 $282,000.00 $386,340.00 $513,832.20 Note: Fade rate is the year-to-year reduction in the rate to some steady state rate Year 1 growth (grosss) = 1.41, year 2 growth (gross) =1.37, etc. Note: on a per $ of sales basis Note: on a per $ of sales basis (all dollars in thousands) Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Residual