Please solve Net Present Value (NPV) and Adjusted Present Value (APV) of Firm.

AIT Group plc HBS Case a Bo3-104 from Exhibit 1 1.87 CALCULATE Discount Rate for Equity (CAPM) Year End (March) 005/06 steady State. 29,4 EBITDA (pre exceptional items) (Exhibit 9a) 12 Costs for redundancy and 10.2 reorganization (1) Gross operating Cash Flow (2) 10.2 (ncrease) decrease in current assets (3) 3.6 in current assets (4) Change in Net Working Capital 0,0 Free Cash Flow Tax shield from debt carry forward 0.4 CALCULATE Present value of on-going tax shields CALCULATE Net Present Value of Cash Flows Net Present Value of Debt tax shields Total Enterprise Value Value of Debt (Exhibit 4b) Value of Equity from Exhibit 4b 2002/03 and 2003/o4 from Exhibit 9b; other years projected as described below 1) Assume EBITDA increases after 2003/o4 proportional to percentage sales growth 2) after 2003/2004 is flat (may be conservative since current liabilities are greater than non-cash assets in Exhibit 4b) 3) CapEx after 2003/04 is assumed to be flat Assume no corporate tax until steady state (due to tax-loss carry-forwards): then 33% tax shields are carried over until we readh steady state interest payments in FY2006 continued until perpetuity Debt is from Exhibit 4b projected post-financing balance sheet AIT Group plc HBS Case a Bo3-104 from Exhibit 1 1.87 CALCULATE Discount Rate for Equity (CAPM) Year End (March) 005/06 steady State. 29,4 EBITDA (pre exceptional items) (Exhibit 9a) 12 Costs for redundancy and 10.2 reorganization (1) Gross operating Cash Flow (2) 10.2 (ncrease) decrease in current assets (3) 3.6 in current assets (4) Change in Net Working Capital 0,0 Free Cash Flow Tax shield from debt carry forward 0.4 CALCULATE Present value of on-going tax shields CALCULATE Net Present Value of Cash Flows Net Present Value of Debt tax shields Total Enterprise Value Value of Debt (Exhibit 4b) Value of Equity from Exhibit 4b 2002/03 and 2003/o4 from Exhibit 9b; other years projected as described below 1) Assume EBITDA increases after 2003/o4 proportional to percentage sales growth 2) after 2003/2004 is flat (may be conservative since current liabilities are greater than non-cash assets in Exhibit 4b) 3) CapEx after 2003/04 is assumed to be flat Assume no corporate tax until steady state (due to tax-loss carry-forwards): then 33% tax shields are carried over until we readh steady state interest payments in FY2006 continued until perpetuity Debt is from Exhibit 4b projected post-financing balance sheet