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What can you tell me about this chart Exhibit 7? How would you make this chart to look efficient, what percentages or numbers would you

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

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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

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