ASSIGNMENT 2

Growth 5 g 75% roic 100% Req rate 25% Early maturity 15 g 25% roic 100% required rate 20% Late maturity G_lr 2.80% ROIC_lr 8% Req rate 8% K_0 $ 100,000.00 FCF_1 $ 25,000.00 EV_G $ 218,912.00 K_5 $ 1,641,308.59 FCF_6 $ 1,230,981.45 PV_20 $ 20,796,802.54 pv_0 $ 6,814,696.25 K_20 $ 46,648,795.94 fcf _21 $ 2,425,737.39

PV_20 $ 46,648,795.94

t K_t FCF_t discounted fcf_t 1 $ 175,000.00 $ 25,000.00 $ 20,000.00 2 $ 306,250.00 $ 43,750.00 $ 28,000.00 3 $ 535,937.50 $ 76,562.50 $ 39,200.00 4 $ 937,890.63 $ 133,984.38 $ 54,880.00 5 $ 1,641,308.59 $ 234,472.66 $ 76,832.00 6 $ 2,051,635.74 $ 1,230,981.45 $ 336,140.00 7 $ 2,564,544.68 $ 1,538,726.81 $ 350,145.83 8 $ 3,205,680.85 $ 1,923,408.51 $ 364,735.24 9 $ 4,007,101.06 $ 2,404,260.64 $ 379,932.54 10 $ 5,008,876.32 $ 3,005,325.79 $ 395,763.07 11 $ 6,261,095.40 $ 3,756,657.24 $ 412,253.20 12 $ 7,826,369.26 $ 4,695,821.55 $ 429,430.41 13 $ 9,782,961.57 $ 5,869,776.94 $ 447,323.35 14 $ 12,228,701.96 $ 7,337,221.18 $ 465,961.82 15 $ 15,285,877.45 $ 9,171,526.47 $ 485,376.89 16 $ 19,107,346.82 $ 11,464,408.09 $ 505,600.93 17 $ 23,884,183.52 $ 14,330,510.11 $ 526,667.64 18 $ 29,855,229.40 $ 17,913,137.64 $ 548,612.12 19 $ 37,319,036.75 $ 22,391,422.05 $ 571,470.96 20 $ 46,648,795.94 $ 27,989,277.56 $ 595,282.25 21 $ 47,954,962.22 $ 2,425,737.39 22 $ 46,648,795.94