Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    Financial Model - Solution

    Uploaded by

    Ossama Ali
    This is a solution for a case study drafted for discussion purposes. The case in the following link: http://img.chandoo.org/fm/financial-modeling-case.pdf

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Financial Model - Solution

    Uploaded by

    Ossama Ali
    40 views6 pages
    This is a solution for a case study drafted for discussion purposes. The case in the following link: http://img.chandoo.org/fm/financial-modeling-case.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This is a solution for a case study drafted for discussion purposes. The case in the following link: http://img.chandoo.org/fm/financial-modeling-case.pdf

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    40 views6 pages

    Financial Model - Solution

    Uploaded by

    Ossama Ali
    This is a solution for a case study drafted for discussion purposes. The case in the following link: http://img.chandoo.org/fm/financial-modeling-case.pdf

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Project Evaluation Model for Design Y

    (Unless otherwise specified, all financials are in USD Mn)


    Asset Name
    Investment Assumptions
    Initial Investment
    Opportunity Cost
    Tenor of Investment
    Salvage Value of Asset
    P&L Assumptions
    Staring Revenue
    Growth in Revenues
    Variable Expenses/ Revenue
    Starting Fixed Expenses
    Growth in Fixed Expenses
    Tax Rate
    Working Capital Assumptions
    Starting workign capital
    Working Capital as %age of Revenue
    Valuation Assumptions
    Discount rat to be taken as
    Risk free rate
    Beta
    Expected return from market
    Cost of dept
    Target dept: capital ratio
    Market Premium
    Expected return based on CAPM
    Calculations
    Cash Flow because of Capex in Desgin Y
    Initial Investment
    less: Opportunity Cost
    add: Starting working capital
    First Year Investment (net)

    Units
    0
    Desgin Y

    400
    100
    10
    20
    250
    10%
    40%
    100
    5%
    30%
    100
    40%
    Direct
    4%
    1
    10%
    7%
    0.50
    13%

    13%
    400
    -100
    100

    Salvage Value of Asset


    P&L Statement for Design Y
    Revenues
    Less: Variable Expenses
    Less: Fixed Expenses
    EBITDA
    Less: Depreciation
    EBIT
    less: tax
    PAT
    Cash Flow Statement because of Investment in Desgin Y
    EBIT(1-t)
    add: depreciation
    less: increase in working capital
    less: Capex
    add: salvage value of asset

    -400
    0

    Free Cash Flow for Project


    Valuation
    Expected return by Equity Investor
    Discount Factor (WACC)
    Discounted Cash Flow
    Net Present Value
    NPV (With formula)
    IRR

    -400
    10%
    9%
    -400
    78
    78
    12%

    FY10A
    1

    FY11P
    2

    FY12P
    3

    FY13P
    4

    FY14P
    5

    FY15P
    6

    FY16P
    7

    100

    110

    121

    133

    146

    161

    177

    250
    100
    100
    50
    40
    10
    3
    10

    275
    110
    105
    60
    40
    20
    6
    20

    303
    121
    110
    71
    40
    31
    9
    31

    333
    133
    116
    84
    40
    44
    13
    44

    366
    146
    122
    98
    40
    58
    17
    58

    403
    161
    128
    114
    40
    74
    22
    74

    443
    177
    134
    132
    40
    92
    28
    92

    7
    40
    0
    0
    0

    14
    40
    -10
    0
    0

    22
    40
    -11
    0
    0

    31
    40
    -12
    0
    0

    41
    40
    -13
    0
    0

    52
    40
    -15
    0
    0

    64
    40
    -16
    0
    0

    47

    44

    51

    59

    67

    77

    88

    43

    37

    40

    42

    45

    47

    50

    FY17P
    8

    FY18P
    9

    FY19P
    10

    195

    214

    236

    487
    195
    141
    152
    40
    112
    33
    112

    536
    214
    148
    174
    40
    134
    40
    134

    589
    236
    155
    199
    40
    159
    48
    159

    78
    40
    -18
    0
    0

    94
    40
    -19
    0
    0

    111
    40
    -21
    0
    20

    100

    114

    150

    52

    55

    66

    You might also like