Find the value of Boston Beer Company based on its projected future cash flows. Explain the process you used to arrive at the number. Make sure to highlight all necessary assumptions and comment on any potential problems with these assumptions (focus on the most important assumptions).

(in thousands) Years Ended December 31, 1992 1993 1994 Nine Months Ended September 30, 1994 1995 (Unaudited) $1,645 $4,894 $9,085 $8,109 $8,261 341 69 330 476 (3) 925 21 280 525 21 1,086 (19) 188 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization (Gain) loss on disposal of fixed asset Stock option compensation expense Changes in assets and liabilities: Accounts receivable Inventory Prepaid exponses Other current assets Other assets Accounts payable Accrued expenses Total adjustments Net cash provided by (used for) operating activities Cash flows from investing activities: Additions to fixed assets Proceeds on disposal of fixed assets Purchases of restricted investments Maturities of restricted investments Net cash used in investing activities Cash flows from financing activities Principal payments on long-term debt Proceeds from revolving line of credit Repayments of revolving line of credit Partners' distributions Net cash used in financing activities (1,393) (919) (135) (308) 28 908 2,361 1.282 2,927 (3,689) (1,847) 2 3 (34) 728 5,079 715 5,609 (1,948) (4,049) (285) (593) (172) 6.353 3,673 4,205 13,290 (7,217) (1,255) (393) (190) (178) 5.129 3,520 (38) 8,071 (5,013) (730) (406) (598) (703) (2,731) 1,508 (7.418) 843 (893) (2,621) (1,830) (749) 12 (18) (209) 297 (805) (1,171) 1.145 (2.647) (815) 799 (1.846) (1,535) 45 (612) 615 (1,487) (755) (50) (50) (50) (50) (50) 700 (700) (1.493) (2.477) (2.527 (11.669) (11.669) (5.610 (5.660 (5.555 (1,543) (5,605) Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosure of cash flow information: Interest paid 629 5.921 $6,550 2,277 6.550 $8.827 (1,026) 8.827 $7,801 565 8.827 $9.392 (6,249) 7801 $ 1.552 $247 $242 S236 $236 $230 34 48 26,727 (in thousands) Years Ended December 31, 1992 1993 1994 Nine Months Ended September 30, 1994 1995 (Unaudited) $1,645 $4,894 $9,085 $8,109 $8,261 341 69 330 476 (3) 925 21 280 525 21 1,086 (19) 188 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization (Gain) loss on disposal of fixed asset Stock option compensation expense Changes in assets and liabilities: Accounts receivable Inventory Prepaid exponses Other current assets Other assets Accounts payable Accrued expenses Total adjustments Net cash provided by (used for) operating activities Cash flows from investing activities: Additions to fixed assets Proceeds on disposal of fixed assets Purchases of restricted investments Maturities of restricted investments Net cash used in investing activities Cash flows from financing activities Principal payments on long-term debt Proceeds from revolving line of credit Repayments of revolving line of credit Partners' distributions Net cash used in financing activities (1,393) (919) (135) (308) 28 908 2,361 1.282 2,927 (3,689) (1,847) 2 3 (34) 728 5,079 715 5,609 (1,948) (4,049) (285) (593) (172) 6.353 3,673 4,205 13,290 (7,217) (1,255) (393) (190) (178) 5.129 3,520 (38) 8,071 (5,013) (730) (406) (598) (703) (2,731) 1,508 (7.418) 843 (893) (2,621) (1,830) (749) 12 (18) (209) 297 (805) (1,171) 1.145 (2.647) (815) 799 (1.846) (1,535) 45 (612) 615 (1,487) (755) (50) (50) (50) (50) (50) 700 (700) (1.493) (2.477) (2.527 (11.669) (11.669) (5.610 (5.660 (5.555 (1,543) (5,605) Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosure of cash flow information: Interest paid 629 5.921 $6,550 2,277 6.550 $8.827 (1,026) 8.827 $7,801 565 8.827 $9.392 (6,249) 7801 $ 1.552 $247 $242 S236 $236 $230 34 48 26,727