Sales growth	10%
Costs of goods sold/Sales	25%
Current assets/Sales	20%
Net fixed assets/Sales	120%
Current liabilities/Sales	15%
Depreciation rate (of the average of the fixed assets at cost)	5%
Interest earned on cash balances	5%
Tax rate	36%
Cash balance every year	$ 130,000
Debt is the PLUG variable
No new common stock to be issued
Number of shares outstantding	100,000

Free cash flow calculation

Year

0

1

2

3

4

5

Profit after tax

Add back depreciation

Subtract increase in current assets

Add back increase in current liabilities

Subtract increase in fixed assets at cost

Subtract after-tax interest on cash

Free cash flow

Valuing the firm
Weighted average cost of capital, WACC	14%
Long-term growth rate of FCFs, g	5%
Year 5 FCF
Terminal value