Compute for:2018-2021 Free cash flow (per yr)Present Value of Free Cash Flow (2018-2021) (Per year) Forecasted Years2018201920202021Sales grwoth rateOperating costs as a % of salesGrowth in net fixed assetGrowth in NOWCDepreciation as a % of operating capitalTax RateWACCLong-run FCF growth9%9%9%8%86%85%8%87%85%8%8%8%8%7%40%8%8%8%8%7%7%40%40%40%10%10%10%10%6%6%6%6% Historical2017SalesOperating CostDepreciation33002871116.6312.4304.1EBITEBT + DEPNet fixed assetsNWOCTotal Operating CapitalNet CAPEX1080864194480CAPEXChange in NWOC196.664FCF43.4PV of FCF39.5

Free Cash flows are the cash flows of the companies which are available to make payments to its…

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Compute for: 2018-2021 Free cash flow (per yr) Present Value of Free Cash Flow (2018-2021) (Per year)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Compute for:

2018-2021 Free cash flow (per yr)
Present Value of Free Cash Flow (2018-2021) (Per year)

Forecasted Years
2018
2019
2020
2021
Sales grwoth rate
Operating costs as a % of sales
Growth in net fixed asset
Growth in NOWC
Depreciation as a % of operating capital
Tax Rate
WACC
Long-run FCF growth
9%
9%
9%
8%
86%
85%
8%
87%
85%
8%
8%
8%
8%
7%
40%
8%
8%
8%
8%
7%
7%
40%
40%
40%
10%
10%
10%
10%
6%
6%
6%
6%

Historical
2017
Sales
Operating Cost
Depreciation
3300
2871
116.6
312.4
304.1
EBIT
EBT + DEP
Net fixed assets
NWOC
Total Operating Capital
Net CAPEX
1080
864
1944
80
CAPEX
Change in NWOC
196.6
64
FCF
43.4
PV of FCF
39.5

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