Find the free cash flow for the attached spreadsheet. Using that information,

Determine the terminal value and then determine the IRR, NPV, and payback period (using discounted cash flows

use the following parameters

A. Assumed parameters
UFCF growth rate after 1985		g		2%
B. Observed parameters:
Tax rate		T		35%
C. Estimated Parameters
Required rate of return for all equity firm		rA		14.62%

Projected income statement 2004 Pounds Price per pound ($) $ Revenues (thousands) COGS Gross profit Sales Administrative and General Depreciation Pretax operating profit (EBIT) Net plant and equipment (NPP&E) Other long-term assets (OLTA) Total assets 2006 2007 2008 2009 5,500 12,000 14,265 14,500 14,750 5.27 $ 5.85 $ 6.50 $ 7.21 $ 8.00 28,999 25,339 3,660 3,190 833 70,230 57,588 12,642 7,725 787 92,669 75,988 16,681 8,803 758 104,557 85,738 18,820 9,933 746 118,059 96,808 21,251 11,216 748 $ (363) $ 4,130 $ 7,119 $ 8,141 $ 9,287 3b. Projected balance sheet Assets Cash Accounts receivable Inventories Other current assets Total Current assets 2005 2004 $ $ 2005 2006 2007 2008 2009 450 $ 2,485 2,935 $ 290 $ 702 $ 927 $ 1,046 $ 1,181 2,415 5,850 7,719 8,709 9,834 5,063 9,790 12,919 14,575 16,458 581 1,404 1,853 2,092 2,361 8,348 $ 17,746 $ 23,418 $ 26,422 $ 29,834 7,000 100 6,944 435 7,019 1,056 7,218 1,390 7,535 1,568 7,966 1,771 $ 10,035 $ 15,727 $ 25,821 $ 32,026 $ 35,525 $ 39,571 Liabilities Accounts payable Net asset value (TA-A/P) 2,083 4,733 6,246 7,047 7,957 $ 10,035 $ 13,645 $ 21,088 $ 25,780 $ 28,478 $ 31,614 Total Liabilities $ 10,035 $ 15,727 $ 25,821 $ 32,026 $ 35,525 $ 39,571 Assumptions: marginal tax rate=35% assume that this is a projet within a larger company where they can take advantage off losses the year they may occur Rember, you hav all the informatin to fu=igure out increase in cpaex each yer (hint think about net capex and depreation to find out the capex each year Nihat Bulent Gultekin Galveston Fishing Company