Using the following set of parameters:

Gross Margin: 40%

Fixed costs $2,000

Revenue Growth Rate for Years 1 to 5: 10%

FCF Steady Growth Rate after Year 5: 3%

Discount Rate: 12%

Year 1 Revenue: $5,000

Tax Rate 35%

Terminal Year: 5

Please answer the following questions;

What percentage of the total enterprise value is attributed to the terminal value?

How sensitive is your valuation to the inputs? If each input (revenue growth rate for years 1-5, FCF Steady growth rate, or discount rate) changes by 10% of their original value, which input affects the total enterprise value the most? You will have to change each input separately (3 scenarios) to see which input has the greatest effect.

		1	2	3	4	5
Revenues
Gross profits
Fixed Costs
Net Operating Income
Taxes
Free Cash Flow
NPV for Years 1-5 Cash Flows
Terminal Value (as of Year 5)
PV of Terminal Value
Enterprise Value
PV of Terminal Value / Enterprise Value