Required:

You generally require investments to triple in value over a 5 year period. Based on your above analysis discuss why you would, or would not, in at least 150 words, acquire this biotechnology company.

Scenario Summary Changing Cells: Result Cells: Current Values: 5% 20% Best scenario Worst scenario 7% 3% 20% 10% 10.5 8.5 Revenue Revenue Revenue $ 7,400,000.00 $ 7,400,000.00 $ 7,400,000.00 $ 7,770,000.00 $ 7,918,000.00 $ 7,622,000.00 $ 8,158,500.00 $8,472,260.00 $ 7,850,660.00 $ 8,566,425.00 $ 9,065,318.20 $ 8,086,179.80 $ 8,994,746.25 $ 9,699,890.47 $ 8,328,765.19 FCFF FCFF FCFF $ 3,236,280.00 $3,189,660.00 $ 3,383,910.00 $ 3,495,280.00 $3,552,260.00 $ 3,539,310.00 $ 3,767,230.00 $ 3,940,242.00 $ 3,699,372.00 $ 4,052,777.50 $ 4,355,382.74 $ 3,864,235.86 $ 4,352,602.38 $4,799,583.33 $ 4,034,045.64 % Increase % Increase % Increase 8.00% 11.37% 4.59% 7.78% 10.92% 4.52% 7.58% 10.54% 4.46% 7.40% 10.20% 4.39% $ 76,272,716.25 $ 96,388,849.98 $ 66,374,504.15 Growth in revenue EBITDA Margin EBITDA Multiple Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Profit projection for fifth year if you were to sell the firm after five years Notes: Current Values column represents values of changing cells at time Scenario Summary Report was created. Changing cells for each scenario are highlighted in gray. Scenario Summary Sheet1 + 9 18 Particulars 19 Revenue $ 20 Less: Initial fees & expenses $ 21 EBIT S 22 Less: Interest $ 23 EBT $ 24 Less: Tax @ 30% $ 25 EAT $ 26 Less: Yearly capital expendit $ 27 FCFF $ 28 % Increase 29 1 7,400,000.00 $ 520,000.00 $ 6,880,000.00 $ 399,600.00 $ 6,480,400.00 $ 1,944,120.00 $ 4,536,280.00 $ 1,300,000.00 $ 3,236,280.00 $ 2 7,770,000.00 $ 520,000.00 $ 7,250,000.00 $ 399,600.00 $ 6,850,400.00 $ 2,055,120.00 $ 4,795,280.00 $ 1,300,000.00 $ 3,495,280.00 $ 8.00% 3 8,158,500.00 $ 520,000.00 $ 7,638,500.00 $ 399,600.00 $ 7,238,900.00 $ 2,171,670.00 $ 5,067,230.00 $ 1,300,000.00 $ 3,767,230.00 $ 7.78% 4 8,566,425.00 $ 520,000.00 $ 8,046,425.00 $ 399,600.00 $ 7,646,825.00 $ 2,294,047.50 $ 5,352,777.50 $ 1,300,000.00 $ 4,052,777.50 $ 7.58% $ 5 8,994,746.25 520,000.00 8,474,746.25 399,600.00 8,075,146.25 2,422,543.88 5,652,602.38 1,300,000.00 4,352,602.38 7.40% 76,272,716.25