1. What can you tell me about this chart Exhibit 7?
2. How would you make this chart to look for efficient, what percentages or numbers would you change to achieve a better result for the chart numbers?

Exhibit 7. Valuation of GE Appliances Using DCF Analysis (millions of US dollars) GE Appliances Actual Actual* Projected Projected Projected Projected Projected Income Assume 2013 2014 2015 2016 2017 2018 Revenue (USD, millions) $5,700.0 $5,814.0 $5,988.4 $6, 168.1 $6,353.1 $6,543.7 Revenue growth (%) 2. 00% 3.00% 3.00% 3.00% 3.00% Less direct & indirect costs 2.0% (5,345.0) (5,451.9) (5,560.9) (5,672.2) (5,785.6) (5,901.3) EBITDA 355.0 362.1 427.5 495.9 567.5 642.4 EBITDA margin (%) 6.2% 6.2% 7. 1% 7.6% 8.9% 9.8% Depreciation (175.6) (179.4) (190.6) (192.4) (192.4) (192.4) EBIT 179.4 182.7 236.9 303.5 375.1 450.0 GE Appliances 0 2 3 A DCF Valuation 2013 2014 2015 2016 2017 2018 EBIT $179.4 $182.7 $236.9 $303.5 $375.1 $450.0 Less recalculated taxes 40% (71.8) (73.1) (94.8) (121.4) (150.0) (180.0) Add back depreciation 175.6 179.4 190.6 192.4 192.4 192.4 Net Operating Cash Flow $283.2 $289.0 $332.7 $374.5 $417.5 $462.4 Present Value factor 10% 1.000 0.909 0.826 0.751 0.683 PV of NOCF 289.0 302.5 309.5 313.7 315.8 Net Present Value (NPV) $1,531 * Estimated sales based on the first 6 months. ** Electrolux corporate finance policy was to use 10.0% for all dollar-based acquisition valuations