MEA GAB - Managerial FINANCE* Professor FV Spreadsheet prepared by _ Ryama Nakanishi* Excelrite Integrated Systems WACC Computation ( Weighted Average Cost of Capiall Weight of Debt 3:035\Risk Premium 6 . 5. 46 Total Investment | 5 9, 200, 00`^` Weight of Equity 1036\Risk. Free Hlate 5:46) Guideline LIFE* 5 years Cost of Debt 736\Beta 1 . 25 Depreciation Schedule ( exhibit 1 1 Cost of Equity 13. 2546| Tax Plate 40135 Year Total WALL / Weighted Average Cost of Capital! 10.53.536} Percent 2036 3.2%' 19.296 11. 525{ 11. 5.29^ 5. 765{| 10 0/96 Dollar Amount\ 5. 1, BOO, OOQ_OU | $ 2. BBQLOOK. OO| $ 1. 123. 090. 00| {` 1, 036, 20 0.00 / 5 1, 636, 802. 00| $ 513, 4010. 00 | 5\ Yearly Saving Calculation ( exhibit 4 ) Free Cash Flow Chart Condition Percentage Expected Saving Year Actual Net Operate Savings ! $ 2. 612, 50 0.010 $ 2.547, 187. 50 2, 463,507. 81| 5 2, 421, 420.12| $ 2, 360, 234. 61 2. 3:01 , 462.50 3035 Higher 3, 250,QQQ. DO Less Depreciation ! 1 . 724.090.0 0 \$ 1 , 036, BOOLOO 518 , 40 0.00 15 56 Lower 10136 |2 , 125 . 090. 00 Income Before Tax . $ 312. 500. 010 13:32, 212.5 0 1\ 155, 507. 81| $ 1, 3:24,620. 12\ $ 1, 324, 064. 61 1, 783 , 462.50 Expected Saving Tax |4[^` 325 , 0010. 00 (133, 125.0 01/} 302, 202.13\ $ 553,248.05\ 524, 633.15 713, 385.010 2.50 56 $87 . 50 0.00 (194, 687. 501/ } 453, 3 04.6.9\ 794, 450. 7 7 1. 070 , 07 7.50 5 1 Inflation Rate* Net Income ! Add Depreciation ! 1 , 724.DOYOU\ 5 1, 036, 809.00| $ 1, 036, 20 0.010\ 518 , 4010.00 Free Cash Flow : | 5 19,000, 040_.001| $ 2. 287, 50,0.010 $ 2.680 . 312.50 $ 2, 181 , 304. 69| $ 1, 267, 512.07\\ \$ 1 , 8:31 , 250. 7 7\ 1. 5. 8 8 , 47 7.50 $ 2,069, 480. 26.` $ 2,193, 743. 27\ \1 , 515 , 1 6 4. 97| $ 1 , 251, 059. 91| \$ 1, 109, 210. 24\ B /0. 927. 24 NEW :| 5` 1 10, 186 . 52 I RR : 10. 98925}