Amount Paid to Chrysos

3500

3000

2500

2000

1500

1000

500

0
Time Admission
0
1
2 75620.952
3 77889.58056
4 80226.2679768
5 82633.056016104
6

Q3

Q4 Time
0
1
2
3
4

w1)
WC
40 40
43.6 3.6
47.524 3.92400000000001
51.80116 4.27716

w3) Tax
Profit/Loss before tax
0
1 -2197.8640776699
20012.2736261665
 3 80671.2118936436
4 114307.706660275

Q5

Time Intial Expenses

0 -2500
1
2
3
4
5 1500

w1) Exchange rate

0 72
1 76.2352941176471
2 80.719723183391
3 85.4679421941787
4 90.495468205601
5 95.8187310412246

Q6) Yilandwe

Q b) i)

Time
0
1
2
3
4
W1) Revenue

Components sold
0
1 150
2 480
3 730
4 360

w2) Cost of Parts

Components sold
0
1 150
2 480
3 730
4 360

w3) Variable Cost

0
1 150
2 480
3 730
4 360

w4) Royalty Fee

0 Royalty
1 36
2 36
3 36
4 36

Q7 )

b) i)

Sales Revenue 0
Number of Drones Produced
Selling Price
Revenue
Less
Variable Cost per unit
VC
FC
Training Cost
Cashflows before Tax
WC Required -1032000
Machinery -35000000
Tax Payable (20%)
Net Cash Flows -36032000
DF 1
PV of cash flows -36032000
NPV 1187209.69507546

2) (b) (ii)
Jigu Project: Asset Value
Asset Value of 46.1 m is estimated as PV of future cashflows related to the project
46111168.19015

Honua Co offer

Asset Value (Pa) 37616756.8025135

Exercise Price (Pe) 30000000
Exercise Date (t) 2
Risk free rate (r0) 2.30%
Volatility (s) 30%

w1)
Working Capital
Revenue 5160000
WC Required 1032000

w2)
Tax
Cashflows before Tax
Tax allowable depreciation
Taxable Cash flows
Tax Payable (20%)

June 2014 Q1

a) Using the Forward Rate Contracts

5.06/1.0677 4.73915893977709

b) Using Futures Contracts

Pay in dollars Sell CHF

That will pay in $ in the future

Using options

Number of Contracts 38.188679245283

Premium payable 102600
Payable in CHF today

Worst Outcome
In $ as per Option 5035000
Amount Required 5060000
25000
Forward Rate

Fixed
Floating

CMC Co Borrows at Fixed of 2.20%

Counter Party Borrows at Floating rate of Y + 0.8
And Swap
Counter Party Benefits 1.60%
CMC Co Loss Y - 0.4 %
Net Saving 1.20%
Payment to the bank 0.40%
Net Saving 0.80%

C) 0.980392156862745
0.961168781237985
0.942322334547044
0.923845426026514
3.80772869867429

Annual Payments to be made 15.7563025210084

Payment Made DF
15.7563025210084 0.980392156862745
15.7563025210084 0.961168781237985
15.7563025210084 0.942322334547044
15.7563025210084 0.923845426026514

Dec-14

Q1)
C)

Appendix 1 Current Value of Avem & Fugae

Mil
Avem 12000
Fugae 922.5
12922.5

Free cash flows to equity (for combined company)

Avem 1666.66666666667
Fugae 76.5
Synergy 40
1783.16666666667
New MV 13373.75
Additional Value (due to merger) 451.249999999998

w1 D(1+g) / (re-g)
922.5
D 76.5
re 11%
g 2.497

C ) ii)

W5 Calculating Discount Factor

Beta for luxury travel

Equity Beta 1.6

Ve 360
Vd 357

Asset Beta 0.892193308550186

Asset Beta (for luxury travel) 1.4

W6 Equity Beta (Fugae) for Luxury travel

Beta Asset 1.4

T 20%
Ve 922.5
Vd 387.6

Beta Equity 1.8711891598916

Cost of Equity 15.227134959349600%

W8 Cost of Debt

0 -102.13
1--4 12.96
4 105.4
8.131088%
W7

0 0
1--4 5.4
4 100

W 10 Expand as expected
1
Cash Flows 3277.6
DF at 12% 0.892857142857143
PV 2926.42857142857

W 11 Not expand as expected

32224.7455324604
-42000
-9775.25446753958

W 10 Grows then Slows

1
Cash Flows 3277.6
DF at 12% 0.892857142857143
PV 2926.42857142857

W 13 Expected NPV

Does not grow

Does grow Continues
Slows Down

Stanzial

Year 1
Expected Dividend 250
DF 0.87719298245614
PV 219.298245614035

2017
Sales Revenue 28100
Operating Profit 2248
Interest Paid 350
Profit before taxation 1898
Taxation 569.4
PAT 1328.6
Non Cash Expenses 1025
Less: Increase in WC -172
Less: Capital Investment -1250
Free Cash flow to equity 931.6
DF 0.87719298245614
PV 817.19298245614

Q9

20x1
Sales Revenue 16146
Operating Profit
Less: Tax (28%)
Dividend
Free Cash flows
DCF (13%)

PV (first 4 years) 12026.911034341

PV (after 4 years) 28060.9264200235
40087.8374543645

Combined Equity Beta of Pursuit & Fodder Co

Asset Beta (Pursuit Co) 0.686046511627907

Asset Beta (Fodder Co) 1.41666666666667

Asset Beta of combined 0.848406546080965

Free Cash Flows after acquisitions

1
Sales Revenue 51952000
Operating Profit 15585600
Less tax (28%) 4363968
Less additional investment 513000
Free Cash Flows 10708632
PV (9%) 0.91743119266055
9824433.02752294

PV 189161845.197484
Previous Valuation 180095000
9066845.19748381
Premium Paid 9021375
 45470.1974838078

Q 10 ) Nente Co

Cost of capital 11%

Free Cash flow of Nente Co

PBIT 1230
Non Cash Expense 1206
Cash Investment -1010
Tax -246
1180

Free Cash flow to firm 13471.0067114094

Non - Current Assets 6500
6971.00671140939
Value per share 2.90458612975391

Percentage Gain in value of Nente Co & Mije Co for cash offer

Nente Co
Cash Value purchase for share 2.95
Value of share 2.9
Gain in share 0.0500000000000003
Gain in share 1.72413793103449

Mije Co
Additional Value after acquisition 770000
3200000
3970000
Old EPS 0.32
New EPS 0.397
Increase in EPS 0.077
Value created as per EPS gain 11550000
Less: Cost of Nente Co 7080000
Additional Value created 4470000
Gain in Mijee Co 0.447
Percentage gain in share value 9.3125

Percentage Gain in value of Nente Co & Mije Co for Share offer

Value of Nente Co Shares 2.9

Value of Mije Co Shares 4.8
Current Earning of combined company 3970
Shares of combined company 11600
EPS per share 0.342241379310345
Price per share 5.13362068965517
Gain in share price for Mije 6.95043103448277
Gain in share price for Nette

Mlima Co

Ve 1400
Vd 1785

Asset beta of Ziwa 3.92678571428571

Mlima Co's Value without undertaking the Bahari Project

20x3 (Reference Only)

Sales Revenue 389.1
Operating Profit 58.4
Net Interest cost -17.5

Profit before Tax 40.9

Taxation 10.2
Investment
Profit after tax 30.7

DF 1
30.7

With Bahari

1
Inflows 4

Cash Flows 4
0.900900900900901
PV 3.6036036036036
NPV 120.322125196358

Value of bond

Interest payment 5.2

DF 0.934579439252336
4.85981308411215

Chikepe Co

i) Current Equity Value of Foshoro Co

 Current Year
Revenue 878.1
PBIT 192.3
Interest 78.6
Tax 22.7
PAT 91

Growth rate for PAT 2.99088664112861

Approx 3%

Free Cash Flow to Firm PBIT + Non cash expense - Additional Cash expense - Tax
167.64
Estimated Value of Co 2466.70285714286
Equity Value of Co 986.681142857143

ii) Equity Value of Combined Company

1
Sales Revenue 4200
Operating Profit 840
Less: Tax 168
Less: Additional Investment 200
Earning 472

DF 0.925925925925926
PV 437.037037037037

Combined Market Value of Company 21419

Equity Value of combined Co 14993.3
Equity value of Foshoro Co 986.681142857143
Equity value of C Co 12600
Synergy Benefits 1406.61885714286
Premium Paid to Foshoro 296.004342857143
1110.61451428571
As a percentage of current value 8.81440090702947

Cost of Capital

Asset Beta Chikpe Co 0.8

Asset Beta Foshoro Co 0.95
Asset Beta of combined 0.81088620638893

Equity Beta of combined 1.08905714285714

Cost of Equity 9.6234

Cost of capital 8.32638

Opao Co
i) Equity Value of Opao Co
Equity Value of Tai Co
Equity Value of Combined Co

Appendix 1

Sales Revenue
Profit
Less: Tax
Less: Additional Investment
Net Flows

DF
PV

ii)

Percentage Gain for Cash for cash share

Percenatge gain for Tai Co 16%

Percenatge gain for Opao Co 11%

Percentage Gain for Share for share basis

For Opao 6
For Tai 39.4736842105263

Percentage Gain for Mixed

Percenatge gain for TAi Co 20.7894736842105

Percenatge gain for Opao Co 9.7186

Appendix 2

MV of Opao Share (Current) 2.5

MV of Tai Co Share (Current) 3.80228136882129

Additional Value created to Tai Co shareholders 157.8

Additional Value created to Opao Co shareholders 562.2

Additional Value created for Opao 319.68

5000
 5319.68
Share Price after acquisition Opao 2.65984
Value for Tai 1400.32
528.422641509434
Number of Tai Shares for exchage 263
Ratio 2.00921156467465

Additional Value given to Tai 234.07

Value given to Opao Shareholders 485.93

Cigno Co

b) i)

Equity Value of Anatra Co 21000

Market Value of Debt 9000
Premium payable to Anatra 7350
Total Value Attributable to Anatra Co 37350

Value gained from acquisition 37478.8000566408

Additional Value attributable to Cigno 128.800056640808

1
After Tax Free cash flows 1600
DF 0.91743119266055
PV 1467.88990825688
Appendix 1
Free Cash Flows Anatra Co R&D
Sales Revenue
PBIT
Less: Tax
Less: Additional Investment
Free Cash Flows

DF
PV
Appendix 2
Cost of capital Combined Company

Asset Beta of C 0.723684210526316

Asset Beta of A 0.68
Equity Value of C 36
Equity Value of A 21
Asset Beta of Combined 0.707590027700831
Equity Beta combined 1.07553684210526
Cost of Equity 11.8287578947368
Cost of Capital 8.96925473684211
Approx 9%

Appendix 3
Value created from Disinvestment of manufacturing

Profit before Tax 747

PAT 582.66
Value from Sell off 5593.536

Morada Co

B) i)
Cost of Equity of Morada Co
Current Position 12%
After 1st Proposal 11.60%
After 2nd Proposal 12.27

Appendix 1
Cost of Equity of Morada Co 12.2
Cost of Debt of Morada Co 4.7

Market Value of Debt 126.432

Market Value of Equity 360
Cost of capital 10.0063%

Cost of Debt 0
Value
Interest Payable
Redemption
Flows
DF 1

Appendix 2

Cost of Equity of Morada Co 11.6163725770328

Cost of Debt of Morada Co 4.4
127.764
Market Value of Debt 25.5528
Market Value of Equity 360

Asset beta of Morada Co 0.93

Asset Beta of Repairs Business Unit 0.65
Asset Beta of Hotel Business Unit 1.05662524589872
Equity Beta of Hotel Business Unit 1.11662465386183

Appendix 3

Cost of Equity of Morada Co 12.27

Cost of Debt of Morada Co 6.2

Cost of Debt 0
Value
Interest Payable
Redemption
Flows
DF 1

Market Value of Debt 190

Market Value of Equity 360
Cost of Capital 9.745%

Appendix 4

Current Forecast
After Tax Earning for the year 28000
Reduction in earning due to reduction in non-
current assets
Sale of non-current asset
Reduction in interest payment

Current Forecast ($ 000)

Non Current Assets 280000
Current Assets 48000
328000

Equity & Liabilities

Share Capital 50000
Retained Earnings 137000
Total Equity 187000

Non current liabilities 120000

Current Liabilities 21000
Total Liabilities 141000

Total Equity & Liabilities 328000

Chrysos Co
B) i)

Appendix 1

Option 1
Small Machinery Parts manufacturing sold to local sup 3102

Option 2 Management Buyout

Sales Revenue 3360

Operating Costs 2520
Profit Before Depreciation, Interest & Tax 840
Less: Depreciation 309.6
Taxable Income 530.4
Tax (18%) 95.472
Cash Flows 434.928

Amount Paid to Chrysos 3288.05568

Chrysos Co Financial Position after reconstruction

$m
Non- Current Assets
Land & Buildings 6000
Equipment 5520
Current Assets
Inventory 1440
Receivables 720
Cash 1439
15119

Equity
Share Capital 2400
Reserves 10319

Current Liabilities
Laon 1800
Payables 600
15119
Food & Beverage

13749.264
14161.74192
14586.5941776
15024.192002928

w1 )

x9
y0
y1
y2
y3
y4

Open Market Value of Property

Nominal Cost of capital

Initial Investment
-230

450

Tax allowable depreciation

-20000
-20000
 -20000
-20000

Working Capital

-200

200

w2)

Land & Building

-21
 735
771.75
802.62
834.7248

Cost of Components

288.4
297.052
305.96356
315.1424668

Cost

19471.2
22333.4664
24522.1461072
26925.3164257056

YR/$
120.1
133.7
142.5
151.9

1
4300
1200
5160000

480
2064000
2700000
4128000
-3732000
-1972320
 1796400
-3907920
0.909090909090909
-3552654.54545455

24883200
1972320

-3732000
-5250000
-8982000
-1796400

To buy Contracts
 96473.9069111425

4750000

23414.8168961319
4869888.72380727

CMC Co
2.20%
Y + 0.4 %

PV
15.4473554127533
15.1444660909346
14.8475157754261
14.5563880151236

vem & Fugae

 w1

) for Luxury travel

W7
MV of debt = PV At investors required rate of return

2
16134.3
0.79719387755102
12862.1651785714

2
16134.3
0.79719387755102
5144.86607142857

NPV
-9764
22471.9
-14487

2
312.5
0.769467528470299
240.458602646968

2018
35125
2810
 437.5
2372.5
711.75
1660.75
1281.25
-214
-1562
1166
0.769467528470299
897.199138196368

1
17114.76
5476.7232
1533.482496
213.1272
3730.113504
0.884955752212389
3300.98540176991

2
54965216
16489564.8
4617078.144
542378.88
11330107.776
0.84167999326656
9536325.03661308
Given

8.7

10.2672413793103
 18.0142687277051

1
418.2825
62.742375

62.742375
15.68559375
8.75475
38.30203125

0.900900900900901
34.5063344594595

2
8

8
0.811622433244055
6.49297946595244

5.2
0.873438728273212
4.5418813870207

ue of Foshoro Co
pense - Additional Cash expense - Tax

mbined Company

2
4494
898.8
179.76
188.16
530.88

0.857338820301783
455.144032921811
 5000
1000
6719.4

FFCF

1
7351
1132.054
226.4108
109
796.6432

0.909090909090909
724.221090909091
 2
1664
0.84167999326656
1400.55550879556

Reference
14980
3210
Cost of Capital of Morada Co
10%
11%
10%

6.2

6.2
0.957854406130268
5.93869731800766
 1

6.2

6.2
0.941619585687382
5.83804143126177

1st Proposal
28000

-756
1260
476.16
9802

1st Proposal
196000
48000
244000

50000
146802
196802

24000
18900
42900

239702
469.72224
4697.2224
Gifts Revenue Tax allowablInitial Market Constructi
-200000
-200000
11457.72 100827.9 -62500
11801.4516 103852.8 -46875
12155.495148 106968.4 -35156.25
12520.16000244 110177.4 -26367.188

Occupancy
Rooms Occupied FC VC Revunue

160 3681390 1840695 1786062.5 54632.5

200 4716781 2358390.5 1830714.0625 527676.4
360 8702461 4351230.4 1876481.9141 2474749
240 5946682 2973340.8 1923393.9619 1049947
240 6095349 3047674.3 1971478.811 1076195

Investment Phase

10306941.0918383
1391632.10185547

1.092016

WC Profit fromTax Cashflows GR/$

-40 -270 55
-3.6 -2.197864 0 -5.797864078 58.20388
-3.92400000000001 20.01227 0 16.088273626 61.5944
-4.27716 80.67121 -7.6971243 68.696927605 65.18242
51.80116 114.3077 -18.861541 597.24732533 68.97946

w2) Sales in Gamalan

Time Quantity SP ($) VC (GR) GR/$
0 55
1 12000 70 1350 58.20388
2 22000 70 1350 61.5944
3 47000 70 1350 65.18242
4 60000 70 1350 68.97946

Revised profit/loss Offser agailosses carri Taxable Profit Tax

-22197.8640776699 0 -22197.864 0 0
12.2736261664686 -12.27363 -22185.59 0 0
 60671.2118936436 -22185.59 0 38485.621442 7697.124
94307.7066602745 0 0 94307.70666 18861.54

Revenue Total CostsTraining andprofits Tax allowab

1209.6 671.5941 409.2 128.80588235 125

1905.12 1110.955 168.795 625.36951557 125
4000.752 2450.384 0 1550.3680405 125
3640.68432 2342.085 0 1298.5988226 125
2205.41454 1490.206 0 715.20877569 250

Depreciation w3) Sales Batches Pr

Value 0
1250 1 10000
1000 250 2 15000
800 200 3 30000
640 160 4 26000
512 128 5 15000

Machinery Working Capital Revenue Cost of Par

-18 -9.6
-2.112 18.19125 -5.195526
-1.721664 66.753288 -19.06361
-1.316499 111.44057652 -31.82786
14.75016 60.340586342 -17.23325
 W5)

Exchange Rate YR/Euro Contributions Components

165 18.19125 123.6 150

180.2 66.75329 127.308 480
190.2 111.4406 131.12724 730
200.8 60.34059 135.0610572 360

w6)

Exchange rate s

120.1 5.195526
133.7 19.06361
142.5 31.82786
151.9 17.23325

Fixed Cost

2.92068 5612
10.720063872 6436.964
17.901166658256 7067.786
9.69311391325402 7760.43

4323.6
4813.2
5130
5468.4

2 3 4
19200 35600 25400
1296 1399.68 1511.6544
24883200 49828608 38396022

499.2 519.168 539.93472

9584640 18482381 13714342
2970000 3267000 3593700
5750784 1848238 1371434.2
6577776 26230989 19716546
-2494540.8 1143259 4355602.2
 7000000
-265555.2 -4196198 -1493309
3817680 23178050 29578839
0.826446280991735 0.751315 0.6830135
3155107.43801653 17414012 20202745

49828608 38396022
2494540.8 -1143259 4355602.2

6577776 26230989 19716546

-5250000 -5250000 -12250000
1327776 20980989 7466545.7
265555.2 4196198 1493309.1

Number of contracts 37.83178

Worst Case
Premium Payable 124925
Worst Outcome 4750000
In $ as per Option 5082500
Amount Required 5060000
-22500
Sell at forward rate -21073.335
4853851.7

Counter Party
3.80%
Y + 0.8 %

Year
1 15.44736
2 30.28893
3 44.54255
4 58.22555
148.5044
Macauley's Duration 2.475073

Current Value of Avem Co & Fugae Co

Avem 12000
Fugae 922.14753616 w1
 Current MV 12922.147536

Free cash flows to equity (for combined company)

Avem 1666.6666667
Fugae 76.5
Synergy 40
Free cash fl 13373.75
Current MV 12922.147536
Additional V451.60246384
To Nahara 276.64426085
To Avem 174.95820299

w1 P = d(1+g)/(re-g)

D 76.5
r 11%
g 2.497
P 922.14753616

Calculating the Discounting factor

Beta for luxury travel

Equity Beta 1.6 x

Ve 360 0.8
Vd 357
Asset Beta 0.8921933

Asset beta 1.4146221

Equity Beta for Fugae Co

Asset beta 1.4

T 20%
Ve 922.5
Vd 387.6
 1 0
3.56 19.224
0.829000646828696 82.90006
102.1241

3 4
36504.7 35683.6
0.711780247813411 0.635518
25983.3244123542 22677.57 64449.491
Cost -42000
NPV 22449.491

3 4
36504.7 35683.6
0.711780247813411 0.635518
10393.3297649417 9071.029 27535.654
Cost -42000
NPV -14464.346

Prob
25% -2441
60 13483.14
15 -2173.05
8869.09

3 4 & ahead
390.625 10752
0.674971516202017 0.59208
263.660748516413 6366.047
7089.465

2019
43906.25
3512.5
 546.875
2965.625
889.6875
2075.9375
1601.5625
-268
-1953
1456.5 40053.75
0.674971516202017
983.096013348237

2 3 4
18141.6456 19230.14 20383.953
5805.326592 6153.646 6522.865
1625.49144576 1723.021 1826.4022
225.914832 239.4697 253.83791
3953.92031424 4191.156 4442.6249
0.783146683373796 0.69305 0.6133187
3096.49958042133 2904.681 2724.745

3 4
58153198.528 61526084
17445959.5584 18457825
4884868.676352 5168191
573836.855040001 607119.4
11987254.027008 12682515
0.772183480061064 0.708425
9256359.53095104 8984613
1.52E+08
 2 3 4 & after
449.6536875 483.3777 519.63104
67.448053125 72.50666 77.944656

67.448053125 72.50666
77.944656
16.86201328125 18.12666
19.486164
9.41135624999999 10.11721
10.875999
41.17468359375 44.26278
47.582494
656.63841
0.811622433244055 0.731191 0.658731
33.4182968864134 32.36457 31.344062 432.54806175 564.1813

3 4 5 6--15
16 18.4 21.16 21.16

16 18.4 21.16 21.16

0.73119138130095 0.658731 0.5934513 3.49
11.6990621008152 12.12065 12.55743 73.8484

3 4 5 6 7

5.2 5.2 5.2 5.2 5.2

0.816297876890852 0.762895 0.7129862 0.6663422238 0.62275
4.24474895983243 3.967055 3.7075281 3.4649795638 3.238299
 3 4 4& onwards
4808.58 5145.181
961.716 1029.036
192.3432 205.8072
201.3312 215.4244
568.0416 607.8045
26743.4
0.79383224102017 0.73503 0.6805832
450.929736320683 446.7545 19657.196 21447.061551
PBIT + Non cash expense - Cash Investment - Tax
108.7
1399.5125

2 3 4
7720.0202 8107.565 8514.565
1188.8831108 1248.565 1311.243
237.77662216 249.713 262.2486
114.396262 120.139 126.16993
836.71022664 878.7131 922.82448
12433.846
0.826446280991735 0.751315 0.6830135
691.49605507438 660.1901 9122.7854 11198.692656
 3 4
1730.56 1799.782
0.772183480061064 0.708425
1336.30984325448 1275.011 5479.7665

1 2 3 4
15729 16515.45
17341.222 18208.283625
2713.2525 2848.915
2991.3609 3140.9289253
596.91555 626.7613
658.09939 691.00436357
299.6 314.58330.309 346.82445
1816.73695 1907.574
2002.9525 2103.1001117
36103.218585
0.91743119266055 0.84168 0.7721835 0.7084252111
1666.73114678899 1605.567 1546.6468 27066.319387 31885.26
 2 3 4

6.2 6.2 6.2

100
6.2 6.2 106.2
0.917485063343169 0.878817 0.8417788
5.68840739272765 5.448666 89.396913
 2 3 4

6.2 6.2 6.2

100
6.2 6.2 106.2
0.886647444150077 0.834885 0.7861437
5.49721415373048 5.176285 83.48846

2nd Proposal
28000

6300
-
-3472
2828

2nd Proposal
350000
57828

50000
139828
189828

190000
28000
218000

407828
Insurance Maintenance CLabour Expenses Revenue - ExpTax WC
-200000
-200000 -51500
-2121.8 -15000 -42436 -122057.80 -21229.86 6368.9592 -1545
-2185.454 -19000 -43709.08 -111769.534 -7916.76 2375.027976 -1591.35
-2251.01762 -23000 -45020.352 -105427.62002 1540.74 -462.22118472 -1639.09
-2318.54815 -27000 -46370.963 -102056.69862 8120.71 -2436.21282026 -1688.263
57963.7

Spot Rate
TAD Taxable Profits Tax TAD Disposal 1.4925
-3100000 -3100000 930000 3100000 930000 1.52599
-1033333.33 -978700.8333 293610.25 1033333.3333 348242.75 1.560232
-1033333.33 -505656.9271 151697.078 1033333.3333 679373.484375 1.595242
-1033333.33 1441415.1674 -432424.55 1033333.3333 2042323.950547 1.631038
1049946.8216 -314984 734962.7750937 1.667637
1076195.4921 -322858.65 8915308.99 9668645.834454 1.705057

Cashflows ($) DF PV
-4.90909091 1 -4.9090909
-0.09961301 0.9124087591 -0.0908878
0.261197014 0.8324897437 0.21744384
1.053917959 0.7595709341 0.80052545
8.658335916 0.6930391734 6.00056597
2.01855656

SP (GR) Sales (GR) VC Imported CompFC Sales revenue

4074.271845 48891 16200 4889.1262136 30000 -2197.86407767

4311.608069 94855 32373 9770.1038835 32700 20012.27362617
4562.769704 214450 75384.945 22751.01918 35643 80671.21189364
4828.562114 289714 104897.349 31657.801156 38850.87 114307.7066603

w4) w5) other relevant cash flows

Asset Beta 0.70211234 Additional TaxTaxable Profit GR/$
Assuming debt is risk free 55
Asset beta of p 1.1 1 0 58.20388
Project all equi 9.600% 2 0 61.5944
 3 38485.62144214 65.18242
4 94307.70666027 68.97946

Opportunity Cost

1 40 560
2 32 448
3 25.6 358.4
4 20.48 286.72

Additional contribution

1 12000 33600
2 22000 63448
3 47000 139614.4
4 60000 183578.1

Taxable profitTax Add back depCash Flows net cash flowsExchange rate

-2700 72 -37.5
3.805882353 0.9514705882 125 127.85441176 127.8544118 76.23529411765 1.677103
500.3695156 125.09237889 125 500.27713668 500.2771367 80.71972318339 6.197706
1425.368041 356.34201013 125 1194.0260304 1194.02603 85.46794219418 13.97045
1173.598823 293.39970564 125 1005.1991169 1005.199117 90.4954682056 11.10773
465.2087757 116.30219392 250 598.90658177 2298.906582 95.81873104122 23.99225
Costs
Selling Price Revenue Batches Pro Costs per batch Special
72 200
120960 1209.6 10000 51150 511.5 76.23529411765 210
127008 1905.12 15000 56265 843.975 80.71972318339 220.5
133358.4 4000.752 30000 61891.5 1856.745 85.46794219418 231.525
140026.32 3640.68432 26000 68080.65 1770.0969 90.4954682056 243.1013
147027.636 2205.41454 15000 74888.715 1123.330725 95.81873104122 255.2563

Variable Cost Fixed Cost Royalty Taxallowable DeTaxable ProfitTax Loss Carried F Tax Payabl

-2.92068 -5.612 -4.3236 -4.5 -4.360556 0

-10.7200639 -6.436964 -4.8132 -4.5 21.21945098 0
-17.9011667 -7.067786472 -5.13 -4.5 45.01376406 -4.360556 -16.26128
-9.69311391 -7.760429546 -5.4684 -4.5 15.68539223 -6.274157
Contribution

18540
61107.84
95722.8852
48621.98059
& Fugae Co
for combined company)

15%
85%
0.892193309
 8 9 10
40
5.2 5.2 5.2
0.582009105 0.5439337426 0.50834929
3.026447344 2.8284554614 22.977388
56.8565957
 Realisable Values
-200000 1 -200000
-251500 0.909091 -228636
62500 46094.10 0.819001 37751.1
46875 39741.92 0.737839 29323.12
35156.25 34595.68 0.664719 22996.42
26367.1875 250000 280363.42 0.598846 167894.6
57963.70 0.539501 31271.49
-139400

1419170.92682927 0.9157509158 1299607.1 -8.666404 1299598

543339.474031438 0.8385997397 455644.34 0 455644.3
1083765.15643375 0.7679484796 832275.8 0 832275.8
3331107.43055108 0.7032495234 2342599.7 0 2342600
1225650.84585508 0.6440013951 789320.85 0 789320.9
16485590.0329208 0.5897448673 9722292.1 0 9722292
0.5400594023 15441740 15441731

Cash Flows DF

560 34 526 0.934579 491.5888

448 63 385 0.873439 336.2739
590.4294268398690.1 59 358.4 140 277.4 0.816298 226.441
1367.185367174250.1 137 286.72 184 239.72 0.762895 182.8812
NPV 1237.185
Tax Shield & benefit of subsidy GR/$
Tax benefit Subsidy benefit 55
1 3.24 15.12 18.36 58.20388 315.4429 0.952381
2 3.24 15.12 18.36 61.5944 298.079 0.907029
3 3.24 15.12 18.36 65.18242 281.671 0.863838
4 3.24 15.12 18.36 68.97946 266.1662 0.822702

DCF

1 -37.5
0.892857142857143 1.4974130567
0.79719387755102 4.940773515
0.711780247813411 9.9438938388
0.635518078404831 7.0591624516
0.567426855718599 13.6138448 30.616901
-0.444912338
Special CostTotal CostsTraining a w4)
14400
16009.4117647059 160094117.65 160.09412 671.5941 409.2 Cost 1250
17798.6989619377 266980484.43 266.98048 1110.955 168.795 Depreciati 500
19787.9653165072 593638959.5 593.63896 2450.384 371.349 Scrap value 500
21999.5614401169 571988597.44 571.9886 2342.085 354.0194 balancing 250
24458.3359540123 366875039.31 366.87504 1490.206 224.6661

(Add Back) Depreciation (Add Back) Tax After Tax CaCash FlowsExchange RRemittableFlows in '0 Royalty
-48.6 101.4 -0.47929 -479290
4.5 0.139444 -1.972556 120.1 -0.016424 -16424.28 36000
4.5 25.719451 23.99779 133.7 0.17949 179489.8 36000
4.5 4.360556 33.252481 31.93598 142.5 0.224112 224112.2 36000
4.5 13.911235 28.6614 151.9 0.188686 188686 36000
300.4218
270.3665
243.318
218.9756

Exchange Rate Contribution Tax Cumulative Royalty Discount F Prevent VaRedundancy & lost contri
101.4 -479290 1 -479290
120.1 4323600 18540 54540 -10908 27207.72 0.892857 24292.61 20000
133.7 4813200 61107.84 97107.84 -19421.57 257176.1 0.797194 205019.2 55697
142.5 5130000 95722.89 131722.9 -26344.58 329490.5 0.71178 234524.8 57368
151.9 5468400 48621.98 84621.98 -16924.4 256383.6 0.635518 162936.4 59089
147483
Redundancy & lost contribution

17857.14
44401.31
40833.41
37552.13
140644
250000 62500 187500 15625
46875 140625
35156.25 105468.8
26367.19 79101.56