Column1 2002 2003Sales 1200000 2400000EBITD 180000 360000Less Depreciation 200000 225000EBIT -20000 135000Tax Expense 8000 -54000EBIAT -12000 81000Add Depreciation 200000 225000Less CAPEX -300000 -300000Less Changes in NWC 0 0Free Cash Flow -112000 6000Terminal ValuePlanned Debt to Value Ratio B/(S+B) 0.3Implied Debt to Equity Ratio B/S 0.4285714286Tax Rate 40%Asset Beta 1.5unlevered cost of capital 15.80%Debt Beta 0.25Cost of Debt Capital 6.80%Equity Beta 2.1428571429Cost of (levered) Equity Capital 20.43%WACC 16.34%

Present Value of forecasted FCFs - WACC 407710.28854Present Value of the Terminal Value 2150483.6557Total Value 2558193.944Net Present Value 1058193.944Implied Initial Amount of Debt 767458.18327

2004 2005 20063900000 5600000 7500000

585000 840000 1125000250000 275000 300000335000 565000 825000

-134000 -226000 -330000201000 339000 495000250000 275000 300000

-300000 -300000 -3000000 0 0

151000 314000 4950004583333

a