A B C D Fibre Company is planning to launch services in Newtown a community with 875 homes. The initial fibre install is 527,000 plus $2,100 for each home. You can make the assumption that all capital is invested at time zero. The planning period is 8 years, and you may assume a terminal value of the project of 8 times Year 7 Net Cashflow. Terminal value is what it is estimated you could sell the business for at the termination of the planning period. In Year 2 the average revenue per User will increase by $5 and each year thereafter. Variable cost is 32% and does not change, and the tax rate is 15% and is paid out in cash. 10 marks Revenue (The $100,000 is just an example to show that the excel works, you need to replace the $100,000 with revenue calculation) Variable Cost 32% $32,000 Net Revenue $68.000 Amortizalion (Deduct) (15 year Straight Line) A B C D Fibre Company is planning to launch services in Newtown a community with 875 homes. The initial fibre install is 527,000 plus $2,100 for each home. You can make the assumption that all capital is invested at time zero. The planning period is 8 years, and you may assume a terminal value of the project of 8 times Year 7 Net Cashflow. Terminal value is what it is estimated you could sell the business for at the termination of the planning period. In Year 2 the average revenue per User will increase by $5 and each year thereafter. Variable cost is 32% and does not change, and the tax rate is 15% and is paid out in cash. 10 marks Revenue (The $100,000 is just an example to show that the excel works, you need to replace the $100,000 with revenue calculation) Variable Cost 32% $32,000 Net Revenue $68.000 Amortizalion (Deduct) (15 year Straight Line)