Analysts expect that under new management the firm could increase it revenue and operating expenses by 12% next year 10%and the following year 7%. Analysts believe the marginal cost to be 6%, the Wacc 8% and the tax to be 20%.

Assumptions. You must adjust numeric value of each assumption as necessary to project cash flow, income, assets & liabilities, etc.

Valuation. Construct a valuation using a DCF analysis to calculate the Enterprise and Equity Values. Apply an EBITDA multiple of 7 to calculate TV.

Commentary. Your commentary should focus on how much your would pay for this firm and why.

	Actual	Projected
	2018	2019	2020	2021	2022	2023
Total Revenue	47,000.0	51,700.0	56,870.0	62,557.0	68,812.7	75,694.0
Cost of Revenue	30,000.0	33,000.0	36,300.0	39,930.0	43,923.0	48,315.3
Gross Profit	17,000.0	18,700.0	20,570.0	22,627.0	24,889.7	27,378.7
Operating Expenses
Depreciation	900.0	636.2	683.2	734.9	791.8	854.3
S, G & A	7,800.0	8,580.0	9,438.0	10,381.8	11,420.0	12,562.0
Non-recurring charge	500.0	-	-	-	-	-
Operating Income	7,800.0	9,483.8	10,448.8	11,510.3	12,677.9	13,962.4
Interest Expense	335.0	30.1	30.1	30.1	30.1	30.1
Earnings before income taxes	7,465.0	9,453.7	10,418.7	11,480.2	12,647.8	13,932.3
Income Taxes	1,513.0	1,890.7	2,083.7	2,296.0	2,529.6	2,786.5
Net Income	5,952.0	7,563.0	8,335.0	9,184.2	10,118.3	11,145.8

Balance Sheet
All numbers are in millions.
	2018	2019	2020	2021	2022	2023
Cash	1,750.0	8,326.8	15,576.9	23,567.7	32,373.3	42,075.3
Receivables	4,097.0	4,506.7	4,957.4	5,453.1	5,998.4	6,598.3
Inventories	4,783.0	5,261.3	5,787.4	6,366.2	7,002.8	7,703.1
Current Assets	10,630.0	18,094.8	26,321.7	35,387.0	45,374.5	56,376.7
Net PPE	6,362.0	6,832.0	7,349.0	7,917.7	8,543.3	9,231.4
Goodwill	1,860.0	1,860.0	1,860.0	1,860.0	1,860.0	1,860.0
Total Assets	18,852.0	26,786.8	35,530.7	45,164.7	55,777.8	67,468.1
Payables	2,888.0	3,176.8	3,494.5	3,843.9	4,228.3	4,651.2
Other Liabilities	830.0	913.0	1,004.3	1,104.7	1,215.2	1,336.7
Long Term Debt	4,224.0	4,224.0	4,224.0	4,224.0	4,224.0	4,224.0
Common Equity	1,762.0	1,762.0	1,762.0	1,762.0	1,762.0	1,762.0
Retained Earnings	9,148.0	16,711.0	25,045.9	34,230.1	44,348.3	55,494.2
Total Liabilities & Equity	18,852.0	26,786.8	35,530.7	45,164.7	55,777.8	67,468.1

Depreciation		636.2	683.2	734.9	791.8	854.3
PPE
Beg		6,362.0	6,832.0	7,349.0	7,917.7	8,543.3
Additions		1,106.2	1,200.2	1,303.6	1,417.4	1,542.4
Depreciation or Disposals		636.2	683.2	734.9	791.8	854.3
End	6,362.0	6,832.0	7,349.0	7,917.7	8,543.3	9,231.4
Debt
Beg		4,224.0	4,224.0	4,224.0	4,224.0	4,224.0
Additions		-	-	-	-	-
Reductions		-	-	-	-	-
End	4,224.0	4,224.0	4,224.0	4,224.0	4,224.0	4,224.0
Interest Calculation
Beg Debt Level		4,224.0	4,224.0	4,224.0	4,224.0	4,224.0
Interest Rate		0.7%	0.7%	0.7%	0.7%	0.7%
		30.1	30.1	30.1	30.1	30.1
Cash
Beg		1,750.0	8,326.8	15,576.9	23,567.7	32,373.3
Operating Cash Flow		8,199.2	9,018.2	9,919.1	10,910.1	12,000.1
NWC		(516.2)	(567.8)	(624.7)	(687.0)	(755.8)
Debt Borrowings		-	-	-	-	-
Sources		7,683.0	8,450.4	9,294.4	10,223.1	11,244.3
Dividends		-	-	-	-	-
Capital Expenditures		1,106.2	1,200.2	1,303.6	1,417.4	1,542.4
Debt Payments
Uses		1,106.2	1,200.2	1,303.6	1,417.4	1,542.4
End	1750	8,326.8	15,576.9	23,567.7	32,373.3	42,075.3

Firm Name		Food N Pak
Your Name		Webster University
Initial Year		2018
Receivables	% of Sales	8.7%
Inventories	% of Sales	10.2%
Payables	% of Sales	6.1%
Other Liabilities	% of Sales	1.8%
Cost of Revenue	% of Sales	63.8%
SGA	% of Sales	16.6%
Interest Rate	% of Debt	0.7%
Tax Rate	% of EBT	20.0%
Dividend	% of NI	0.0%
Discount Rate
Depreciation Life	Years	10
Capital Expenditures (Asset/Sales Ratio)	% of Chg Sales	10.0%
Growth Rate	1	10.0%
	2	10.0%
	3	10.0%
	Terminal	10.0%
Non-recurring	% of Sales	0.0%
Debt Growth	% Growth Rate	0.0%
Debt Reduction	% of O/S Balance	0.0%
Round	Num of places	1