Completed analysis for DCF method (dollars in millions) Discount rate CAPM rate (r) Exit value Exit value NPV: Forecast period FCFs PV of FCFs TV TV growing perpetuity (g = 5%) PV of TV Total NPV XXX Expected NPV (50% Prob. of Success) 50% of XXX Equity stake 30/Expected NPV 2011 2012 2013 2014 2015 2016 2017 Revenue 137 198 260 335 425 525 EBITDA 38.84 60.12 76.7 98.85 125.35 157.85 EBIT 38.16 59.13 75.4 97.18 123.23 155.23 Interest Expense 0 0 0 0 0 0 Net Income 26.71 41.39 52.78 68.02 86.26 108.66 Free Cash Flow 20.39 32.26 40.8 52.58 66.67 84.46 1 2 3 4 5 6