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You are using the value-based management model. Based on the following data, what is the horizon value at the end of year 5? Year 1
You are using the value-based management model. Based on the following data, what is the horizon value at the end of year 5?
Year 1
Revenue 650.00
Fixed Costs 90.00
Varibale Costs 220.00
Additional investment in NWC 3.00
Additional investment in operating long- 80.00
term assests
Depreciation 75.00
Tax Rate .40
The free cash flow is expected to grow at 8% from year 1 to 5 and 6% after year 5 to infiity. WACCcomp=12%
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