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How can this analysis help to improve our understanding regarding the value of Buster's Burritos? 1) Using the information provided in the case, construct a
How can this analysis help to improve our understanding regarding the value of Buster's Burritos?
1) Using the information provided in the case, construct a DCF forecast model to help understand the value of Buster's Burritos. Tax Rate 33.33% \begin{tabular}{l|c} & Buster's Calculations \\ \cline { 2 - 2 } Revenue & $5,000 \\ Cash Operating Expenses & 3100 \\ Depreciation & 400 \\ \multicolumn{1}{c}{ Earning before interest and taxes } & $1,500 \\ Taxes & $500 \\ \cline { 2 - 2 } NOPAT & $1,000 \\ \hline + Depreciation add back & 400 \\ \hline - Capital expenditure (refrigerator) & 1200 \\ - Increase in net working capital investment & 300 \\ \hline Free cash flow to my investor (Grandma) & $100 \end{tabular} FCF = NOPAT + Depreciation - Capex - Change NWC $100 FCF = NOPAT - change NFA - Change in NWC $100Step by Step Solution
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