Income Statement 31, March 2018 31, March 2019 Adjusted

Net Sales 75,000 100,000 100,000

Cost of sales 50,000 50,000

R&D 15,000 10,000

Sales and Marketing 10,000 10,000

Other Expenses 10,000 10,000
Depreciation and Ammortiation 5,000 6,155
Operating Earnings 10,000 10,000
Interest paid 3,600 4,755
Pre-tax profit 6,400 5,245
Taxes (34%) 2,176 1,783
Net Income 2,800 4,224 3,462

Balance Sheet 31, March 2018 31, March 2019 Adjusted

Assets
Cash and cash equivalents 10,000 10,000
Lease Asset Capitalised 11,552
Accounts Receivable 20,000 20,000
Inventories 10,000 10,000
Property, plant and equipment-gross 50,000 50,000
R&D 8,000 0 13,000
Other fixed assets 5,000 5,000
Total Assets 95,000 119,552
Liabilities and Shareholders' Equity
Accounts payable 15,000 15,000
Debt 40,000 51,990
Total Liabilities 55,000 55,000
Shareholders' Equity 40,000 52,561
Total Liabilities and Shareholders' Equity 95,000 107,561

Tax Rate 34% 34%

Beta 1.2 1.2
Risk free Rate 5% 5%
Market Risk Premium 7.20% 7.20%
Interest Rate 9% 9%

Post Tax Cost of Debt 5.94% 5.94%

Cost of Equity 13.64% 13.64%
WACC 9.79% 9.81%

Economic Value Added -1,232

Net Operating Profit after Tax 6,600
WACC 9.79%
Capital Invested 80,000
 2017 2018 2019
R&D 6 9 15
2 2 2
0 3 3 3
0 0 5 5 5
Ammortisation 2 5 10
Balance 4 4 5 13
B/D 6 15 30
Ammortisation 0 5
C/D 6 15 25

Y1 Y2 Y3 Y4
Investment -100 - - -
Depreciation -25 -25 -25 -25
Cost of Capital -10 -10 -10 -10
NOPAT 50 50 50 50
FCFF -85 15 15 15

0 1 2 3 4 5
Value of Asset 12,835
Lease Rental 2,000 2,000 2,000 2,000 2,000
0.9174312 0.84168 0.7721835 0.7084252 0.6499314
2,000
if any amount is required to be divided equally over a period of time, then we will divide t
9% for 10 years

In BS in the beginning of the year we are ready with 2 numbers:

Asset 12,835 1,284 11,552
Liability (BB) 12,835 845 11,990

Interest Calcuation
1,155
845

NOPAT 10,373
Capital 104,551
Cost of Capital 9.81%
Debt 51,990 0.4972716
Equity 52,561 0.5027284

EVA 115.31
 100 109

6 7 8 9 10

2,000 2,000 2,000 2,000 2,000 9%

0.5962673 0.5470342 0.5018663 0.4604278 0.4224108 6.4176577

time, then we will divide the value by present value interest factor annuity (PV IFA)