Intrest Rate 11.

50%
Tax Rate 33%
EBIT Multiplier 5.95 Year 1 2 3 4
Required Rate of Return 20% Beginning Debt 1200 1155 1100 1050
Ending debt 1155 1100 1050 1000
Depriciation 80 80 80 80
Cap Ex 72 72 72 72
Change in NWC 21 21 21 21
EBIT 235 244.4 254.18 264.34
-Interest -138 -132.825 -126.5 -120.75
PBT 97 111.575 127.68 143.59
-Taxes -32.01 -36.81975 -42.1344 -47.3847
Net Income 64.99 74.75525 85.5456 96.2053

less:Debt Repaid -45 -55 -50 -50

less:Change in Capex -72 -72 -72 -72
less: Change in WC -21 -21 -21 -21
Add: depriciation 80 80 80 80

FCFE 6.99 6.76 22.55 33.21

NPV of FCFE ₹ 69.38
DTV + NPV of FCFE ₹ 497.30

DTV + NPV of FCFE if D ₹ 348.46

 5 6 7 8 Value of the Firm in 8th Year(Terminal Value) 1839.978
1000 925 840 740 Discounted Terminal Value ₹ 427.92
925 840 740 640
80 80 80 80 Value of the Firm in 8th year less of Debt 1199.978
72 72 72 72 DTV ₹ 279.08
21 21 21 21
274.92 285.91 297.35 309.24
-115 -106.375 -96.6 -85.1
159.92 179.535 200.75 224.14
-52.7736 -59.24655 -66.2475 -73.9662
107.1464 120.2885 134.5025 150.1738

-75 -85 -100 -100

-72 -72 -72 -72
-21 -21 -21 -21
80 80 80 80

19.15 22.29 21.50 37.17