Question
What is the terminal cash flow of the following? Someone is buying an existing business in 2018 and hoping to increase its profitability before selling
What is the terminal cash flow of the following?
Someone is buying an existing business in 2018 and hoping to increase its profitability before selling it. 2017 is year 0, 2018 is year 1, and 2024 is year 7 and the terminal year/year of sale.
Net working capital: 315.9 (2017), 272.1 (2018), 193.0 (2024)
Net equipment: 326.3 (2017), 375.1 (2018), 464.6 (2024)
Depreciation: 10.4 (2017), 14 (2018), 42.9 (2024)
Capital expenditures: 4.1 (2017), 62.8 (2018), 23.3 (2024)
Net revenue: 1602 (2018), 2007 (2024)
Operating expenses: 920 (2018), 1064 (2024)
Salary: 500 (2018), 626 (2024)
Operating profit: 168 (2018), 274 (2024)
Business income tax: 32%
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