I need help with the written question asking what expenses need to be excluded as well as the PV (Terminal value).

How do I find the remaining slots as well as the written question regarding the financial manager.

HHow do I find the remainder NPVs

9000000 5 1800000 30000000 6% 2% Question: When calculating incremental unlevered net income, what expenses should we exclude and why? Answer: Assumptions (Amounts in $ Thousands Unless otherwise Indicated) Initial Capital Expenditure (Year) Useful Life of Equipment Annual Depreciation Sales in Year 1 Sales Growth Rate per Yearthrough Year 6 Sales Growth Rate In Year 7 and beyond See aan row oro Free Cash Flow Growth Rate in Year 7 and beyond Cost of Goods Sold (% of sales) Incremental SG&A Expense Market Research Expense Initial Net Working Capital (Year) Accounts Receivable % of Next Year Sales (Year 1 and beyond) Inventory % of Next Year COGS (Year 1 and beyond) Accounts Payable % of Next Year COGS (Year 1 and beyond) inte Interest Expense 72% 5000000 500000 6000000 15% 20% 15% 1000000 30% 20% Tax Rate Cost of Capital Year Unlevered Income Statements Year 0 0 Sales Year 1 30,000,000 21,600,000 8,400,000 Year 2 31,800,000 22,896,000 8,904,000 Year 3 33,708,000 24,269,760 9,438,240 Year 4 35,730,480 25,725,946 10,004,534 5 37,874,309 27,269,502 10,604,806 Year 6 40,146,767 28,905,672 11,241,095 Year 7 40,949,703 29,483,786 11,465,917 Less: Cost of Goods Sold Gross Profit Less: Expenses SG&A Expenses Depreciation EBIT Less: Income Tax 5,000,000 0 5,000,000 1,800,000 1,600,000 480,000 5,000,000 1,800,000 2,104,000 631,200 5,000,000 1.800.000 2,638,240 791472 5,000,000 1,800,000 3,204,534 961,360 5,000,000 1,800,000 3,804,806 1,141,442 5,000,000 0 6,465,917 1,939,775 6,241,095 1,872.328 Unlevered Net Income 1,120,000 1,472,800 1,846,768 2,243,174 2,663,365 4,368,766 4,526,142 Working Capital Calculations Inventory Accounts Receivable Accounts Payable NWC Level Change in NWC CF from Change in NWC 4,579,200 4,770,000 3,434,400 5,914,800 -85,200 85,200 4,853,952 5,056,200 3,640,464 6,269,688 354,888 -354,888 5,145.189 5,359,572 3,858,892 6,645,869 376,181 -376,181 5,453,900 5,681,146 4,090425 7,044,621 398,752 -398,752 5,781.134 6,022,015 4,335,851 7467,299 422,677 -422,677 5,896,757 6,142,455 4,422,568 7,616,645 149,346 -149,346 6,000,000 6,000,000 -6,000,000 -7,616,645 7,616,645 4,526,142 Unlevered Cash Flows Unlevered Net Income Add Back: Depreciation CF from Change in NWC CF from Capital Expenditure Free Cash Flow Terminal Value (FCFS in Year 6 and beyond) 1,120,000 1,800,000 85,200 1,472,800 1,800,000 -354,888 1,846,768 1,800,000 -376,181 2,243,174 1,800,000 -398,752 2,663,365 1,800,000 -422,677 4,368,766 0 -149,346 7,616,645 -6,000,000 -9,000,000 -15,000,000 3,005,200 2,917,912 3,270,587 3,644,422 4,219,420 12,142,786 4,040,687 23,441,225 0.3349 1.0000 -15,000,000 4,225, 259 0.8333 2,504,333 0.6944 2,026,328 0.5787 1,892,701 0.4823 1,757,534 0.4019 1,623,862 Discount Factor (1/(1+r)^n) PV(FCF) NPV in which PV (Terminal Value) PV(Terminal Value)/NPV 0