| | Enterprise Valuation & Terminal Value |
| | Given | | | | | | | Solution Legend |
| | Gross Margin | 40% | | | | | | Value given in problem |
| | Fixed Costs | $ 2,000 | | | | | | Formula/Calculation/Analysis required |
| | Revenue Growth Rate for Years 1 - 5 | 10% | | | | | | Crystal Ball Input |
| | FCF Steady Growth | 3% | | | | | | Crystal Ball Output |
| | Discount Rate | 12% |
| | Year 1 Revenue | $ 5,000 |
| | Tax Rate | 35% |
| | Terminal Year | 5 |
| | |
|
| | | | 1 | 2 | 3 | 4 | 5 |
| | Revenues |
| | Gross profits |
| | Fixed Costs |
| | Net Operating Income |
| | Taxes |
| | Free Cash Flow |
| | NPV for Years 1-5 Cash Flows |
| | Terminal Value (as of Year 5) |
| | PV of Terminal Value |
| | Enterprise Value |
| | PV of Terminal Value / Enterprise Value |