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The free cash flows for the Years 0-5 (10 marks) The terminal value (2 marks) Calculate DCF ,The discount rate has been assumed to be

  1. The free cash flows for the Years 0-5 (10 marks)
  2. The terminal value (2 marks)
  3. Calculate DCF ,The discount rate has been assumed to be 10%, the owners mentioned the selling price of the company as Rs 5,00,000 Lakhs.

A) Use the discounted cash flow method to calculate the value of equity and arrive at a decision of buyo-buy. If it's a no-buy, quote the maximum possible amount that you would be willing to pay to acquire the company.

B),What would be the share price if there are 1 Crore shares of the Green Energy Company in the market?

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\begin{tabular}{|l|l|r|r|r|r|r|} \hline & Year 0 & \multicolumn{1}{|c|}{ Year 1 } & \multicolumn{1}{|c|}{ Year 2 } & \multicolumn{1}{|c|}{ Year 3 } & \multicolumn{1}{|c|}{ Year 4 } & \multicolumn{1}{c|}{ Year 5 } \\ \hline Revenue & 290212 & 319233.2 & 351156.5 & 386272.2 & 424899.4 & 424899.4 \\ \hline \begin{tabular}{l} Cost of \\ goods sold \end{tabular} & -191586 & -210744.6 & -231819.1 & -255001.0 & -280501.1 & -280501.1 \\ \hline Production & -36682 & -33013.8 & -29712.4 & -26741.2 & -24067.1 & -21660.4 \\ \hline \begin{tabular}{l} Administrati \\ ve expenses \end{tabular} & -11480 & -10906 & -10360.7 & -9842.7 & -9350.5 & -8883.0 \\ \hline Depreciation & -18745 & -19245 & -19745 & -20245 & -20745 & -18745 \\ \hline \begin{tabular}{l} Operating \\ income \end{tabular} & 31719 & 45323.8 & 59519.3 & 74442.4 & 90235.7 & 95110.0 \\ \hline Interest & -766 & -842.6 & -926.8 & -1019.5 & -1121.5 & -1121.5 \\ \hline Tax & -10113 & -11124.3 & -12236.7 & -13460.4 & -14806.4 & -14806.4 \\ \hline Net Income & 20840 & 33356.9 & 46355.8 & 59962.5 & 74307.8 & 791821 \\ \hline \end{tabular}

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