Net Sales

1996 1997

Sales $130,000 $260,000

Cost of Sales 61,620 123,240
Gross Profit 68,380 136,760
less Expenses
Selling and Administrative Exp 61100 122200
Dep exp 1625 3250
TOTAL EXP 62725 125450
Operating Income 5655 11310
Interest Income 221 230
Interest exp -243 -239

Tax 2319 4637

Net Income 3800 7142

FCFF
Operating Income
NOPAT (EBIT*(1-T)) 3336 6673
Add: Dep 1625 3250
Less: Change is working capital 13000 26000
PP&E 5200 10400
Less: CAPEX 6825 13650
FCFF -14864 -29727
1 2
 FCFF 6825 13650
WACC / Discount Rate 8.00% 8.00%
Terminal Value 110906 221812
CASh Flows 102691 190168
cashflows -pv Total Cash Flows
Enterprice Value 1,166.02
Debt 0
Cash 200000

total enterpirce value(2006) ev-debt+cash

201,166.02
Total Shares 100,000
Price Per Share 2.0116602

we 42 58
wd 0.72 77.5
we 0.775
 1996 1997 1998 1999 2000

$100,000 $200,000 $250,000 $300,000 $350,000

PROJECTION
1998 1999 2000 2001 2002 2003

$325,000 $390,000 $455,000 $500,000 $540,000 $575,000

154,050 184,860 215,670 225,000 243,000 258,750
170,950 205,140 239,330 275,000 297,000 316,250

152750 183300 213850 235000 253800 270250

4063 4875 5688 6250 6750 7188
156813 188175 219538 241250 260550 277438
14138 16965 19793 33750 36450 38813
429 269 203 188 184 233
-233 -177 -173 -188 -184 -233

5796 6956 8115 13838 14945 15913

9003 10455 12054 20289 21874 23365

8341 10009 11678 19913 21506 22899

4063 4875 5688 6250 6750 7188
32500 39000 45500 50000 54000 57500
13000 15600 18200 20000 21600 23000
17063 20475 23888 26250 28350 30188
-37158 -44591 -52022 -50088 -54095 -57600
3 4 5 6 7 8
 17063 20475 23887.5 26250 28350 30187.5
8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
277265 332718 388172 410156 425250 433945
220102 244558 264183 258468 248129 234447

22.5
8.025 WACC / Discount rate
 Sales Growth 30%
Sales Growth 2001 to 2006
25%
20%
15%
10%
7.50%
5%
Dep Exp 1.25%
selling Exp 47%

2004 2005 2006

$605,000 $645,000 $735,000

272,250 290,250 330,750
332,750 354,750 404,250

284350 303150 345450

7563 8063 9188
291913 311213 354638
40838 43538 49613
456 435 221
-456 -435 -221

16743 17850 20341

25006 26557 29713

24094 25687 29271

7563 8063 9188
60500 64500 73500
24200 25800 29400
31763 33863 38588
-60605 -64612 -73628
9 10 11
31762.5 33862.5 38587.5
8.00% 8.00% 8.00%
436734 455027 506461
218476 210766 217212
2409200