Year 0 Year 3 Year 1 25,000 4,500 (1,250) (2,500) Year 2 25,000 4,800 1,550 300 25,000 5,200 2,450 1,200 Year 4 25,000 6,000 3,250 2,000 Year 5 25,000 6,500 3,650 2,400 Year 6 25,000 7,200 4,250 3,000 Total Debt EBITDA Free Cash Flow before Debt Service Net Equity Cash Flows Expected Equity Return Exit Year Terminal Value 1. EBITDA Multiple 2. Perputity Method (use Next Year's Cash Flow) WACC Growth Rate 20% Year 5 8.0x 10.0% 5.0% OUTPUT CASH FLOW PROJECTIONS FOR DCF 0 1 3 4 5 2 Year 2 6 Year 6 Year 0 Year 1 Year 3 Year 4 Year 5 Equity Cash Flows Terminal Value (Exit Year) 1. EBITDA Multiple 2. Perputity Method (use Next Year's Cash Flow) Average Debt Equity TV Equity Cash Flows + TV Net Present Value IRR