Question 1

Using a range of WACC of 8% to 10% and an EBITDA multiple of 9 to 11 times to calculate the terminal value,

please establish a valuation range (EV) for ARAG. In Excel, you will need to use the NPV function (=NPV) and the

data table of the What-If Analysis to answer this question (see instructions in the template).

Questions (SECTION 1)
Question 1		Year 1	Year 2	Year 3	Year 4	Year 5
UFCF		11.0	12.0	13.0	14.0	15.0
EBITDA (year 5)						21.0
Multiple						10
Terminal value						210.0
Total Cash Flows		11.0	12.0	13.0	14.0	225.0
WACC	9%
NPV	186.4
Sensitivity Analysis - Data table	186.4	8%	9%	10%
	9	179.9	172.7	165.9
	10	194.2	186.4	179.0
	11	208.5	200.0	192.0
Minimum	165.9
Maximum	208.5