Construct a DCF analysis and determine the Enterprise Value using the information outlined below. Forecast out five years of projections before using the Gordon Growth method to calculate Terminal Value.

• Revenues
  • Current Year: $ 95,000
  • Projected Year 1: $100,000
  • Projected Year 2: $105,000
  • Projected Year 3: $110,000
  • Projected Year 4: $115,000
  • Projected Year 5: $120,000
  • Long-term industry growth rate of 3%
• Gross Margins forecasted at 38%
• Depreciation at 8% of Revenues
• Capital Expenditures of 9% of Revenues
• Operating Margins forecasted at 16%
• Tax Rate of 25%
• DSO, DIO, and DPO of 30, 60, and 30 days respectively
• Prepaids running 2% of revenues and Accruals running 3% of revenues
• Target Capital Structure of 35% Debt and 65% Equity
• Company pays 5% for its debt
• Risk free rate of 2%, levered beta of 1.2 and market risk premium of 6%
• Use a 360-day year