Fullbridge Program iPads in China template
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| iPad Distributor in China - DCF Analysis | |||||||||
| Assumptions | |||||||||
| Initial Investment | $ 10 000 000 | ||||||||
| Income Statement Components | |||||||||
| Projected sales volume 2011 | 100 000 | units | |||||||
| Sales volume growth rate (2012-2015) | 15% | ||||||||
| iPad Retail Price | $ 700 | ||||||||
| Change in retail price per year | -5% | ||||||||
| iPad Wholesale Price | $ 500 | ||||||||
| Change in wholesale price per year | -3% | ||||||||
| Initial Gross Margin | 29% | ||||||||
| Operating Expenses | 11% | as a percent of sales (note includes depreciation) | |||||||
| Initial Operating Margin | 18% | ||||||||
| Balance Sheet Components | |||||||||
| Depreciation (% of Cumulative Gross PP&E) | 10% | assuming a 10 year depreciation schedule | |||||||
| Year 1 Capital Expenditures | $ 5 000 000 | ||||||||
| Growth in Capital Expenditures per year | 5% | ||||||||
| Net Working Capital | 4% | as a percent of sales | |||||||
| Tax rate | 35% | ||||||||
| Discount Rate | 11,76% | ||||||||
| Perpetuity Growth Rate | 3,00% | ||||||||
| Projected | |||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | |||||
| Summary Income Statement | |||||||||
| Sales | |||||||||
| iPad (volume) | 100 000 | ||||||||
| iPad (price) | $ 700 | ||||||||
| iPad (revenue) | $ 70 000 000 | ||||||||
| Gross Profit | $ 20 000 000 | ||||||||
| Operating Profit | $ 12 300 000 | ||||||||
| Taxes | $ (4 305 000) | ||||||||
| Net Income | $ 7 995 000 | ||||||||
| Key Balance Sheet Data | |||||||||
| Net working Capital | $ 2 800 000 | ||||||||
| Cumulative Gross PP&E - Beginning of Year | $ - | ||||||||
| Plus Capital Expenditures | $ 5 000 000 | ||||||||
| Cumulative Gross PP&E - End of Year | $ 5 000 000 | ||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | |||||
| Free Cash Flow | |||||||||
| EBIAT (Operating Profit * (1-Tax Rate)) | $ 7 995 000 | ||||||||
| + Depreciation (10% of Cumulative Gross PP&E-EOY) | $ 500 000 | ||||||||
| - Capital Expenditures | $ (5 000 000) | ||||||||
| - Change in Net Working Capital | $ (2 800 000) | ||||||||
| = Free Cash Flow | $ 695 000 | ||||||||
| Terminal Value (growing perpetuity) | |||||||||
| Total Free Cash Flows | $ 695 000 | $ - | $ - | $ - | $ - | ||||
| Discount Rate | |||||||||
| Perpetuity Growth Rate | |||||||||
| NPV of Future Cash flows | |||||||||
| Less Initial Investment | |||||||||
| Enterprise Value | $ - | ||||||||
12 years ago
Fullbridge Program iPads in China template
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fullbridge_program_ipads_in_china_template_1.xlsx
