Gary has been approached by Senwes to buy 70% of Top Harvest. Do a valuation of the business using the following assumptions ( work with net profit after tax and use the Cost of Equity to discount the cash flows). You only have a project the net profit over 10 years and discount with the cost of equity.

VALUATION OF TOP HARVEST
ASSUMPTIONS
1. Business has very high growth potential
2. Growth p.a. for next three years =		2,0%
3. Growth p.a. for next following seven years =		2,0%
4. Business will have good prospects for at least 10 years
6. Profits (NPAT) for financial year ('000) =		-
7. Cost of Equity (Re) =		17,0%
9. Assume Cash flow and Profits will be the same