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Investment and Business Valuation

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					KEY ASSUMPTIONS
Investment Details
New Existing 2007 New Investment Status Quo First Year of Investment Input Denomination $000 Name of Investment

Taxation & Amortisation Rate Credits
33.00% Company/Business Tax Rate Goodwill Amort (Yrs) 10

Carry forward tax credits (if any) on operational losses?

Capital and Cost of Capital Equity Ke Debt Kd Timing CE
10,000 15.00% 9,000 7.00% End Beg Current level of Company Equity (in denomination above) Cost of Equity, or Calculate Current level of Company Debt Cost of Debt Discount cash flow evenly through the year (Mid) or at the end (End). Capital Employed calculated at the start of the year (Beg) or averaged (Avg). Weighted Average Cost of Capital Risk-Free Rate Market Risk Premium Equity Beta 7.00% 8.00% 1.00

WACC = 10.12%
Include existing asset input data in EVA capital charge?

Terminal Value Include Rate Capex
2.00% 0 Include a terminal value after 5 years? Calculation Type Infinite Finite

Growth Rate after Yr 5 (or omit to use Yr 5 Growth Rate as per forecast). Ongoing annual capital expenditure requirement into perpetuity

Comparable Investment Score
Optimal 10.00% 500 3.0 5.0 500 Weight 40% Return on Invested Capital (> WACC) 25% Net Present Value of cash flows 5% Cost/Benefit Ratio 15% Payback Period for cash invested 15% Free cash flow after 2 years 100% Apply default weightings: Capital Constrained

0 2

TRUE Mid End Beg Avg

1

FALSE TRUE 1

0 1

1 1 Capital Constrained Capital Constrained No Capital Constraint Capital Constrained 40 25 5 15 15 100 40 25 5 15 15 100 20 40 20 10 10 100

INPUT ASSUMPTIONS FOR Status Quo (Before New Investment)
$000

Description Taxable Revenue

Year 0
2006

Year 1
2007

Year 2
2008

Year 3
2009

Year 4
2010

Year 5
2011

Total

Assumptions

0 0

Non-Taxable Revenue
0 0

Operating Expenses
0 0

Investment Expenses

Amort Yrs 1 1 1

Existing Assets

Existing Asset
Life (yrs) Age (Yrs) Disposal Current BV

Accounting
Rate Method Current BV

Taxation
Rate Method

Unamort. Goodwill

Capital Expenditure
Life (yrs) Yr of Acq

New Asset
Acq Price Actg BV Disposal

Accounting
Rate Method

Taxation
Rate Method

Equity Funding 52.6% 52.6% 52.6% 52.6% 52.6%

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FINANCIAL ANALYSIS FOR Status Quo
$000

Accounting Impact Total Revenue Expenditure EBITDA Accounting Depreciation Goodwill Amortisation EBIT Interest Expense Tax Payable Net Profit B4 Ab. Items Profit on Asset disposal Net Profit Cash Flow Analysis

2006 0 0 0 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 0

Total 0 0 0 0 0 0 0 0 0 0 0 Total PV of Capital Commitments after Year 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0

less

less less

less less

add

$000

Taxable Revenue Total Expenditure less Tax Payable less Interest Expense Operating Cash Flow
less less

Non Taxable Income Capital Expenditure add Asset Disposal Proceeds Net Cash Flow
add

5 Yr NPV Total NPV of Cash Flow

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$000

Economic Value Added Total Revenue Total Expenditure Tax Payable Interest Expense Asset Disposal Proceeds Economic Adjustments Economic Profit Capital Employed Capital Charge Economic Value Added 5 Yr PV of EVA

2006 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0 0

Total PV of Capital Commitments after Year 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

less less less add add

less

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INPUT ASSUMPTIONS FOR New Investment
$000

Description Taxable Revenue

Year 0
2006

Year 1
2007

Year 2
2008

Year 3
2009

Year 4
2010

Year 5
2011

Total

Assumptions

0 0

Non-Taxable Revenue
0 0

Operating Expenses
0 0

Investment Expenses

Amort Yrs 1 1 1

Existing Assets

Existing Asset
Life (yrs) Age (Yrs) Disposal Current BV

Accounting
Rate Method Current BV

Taxation
Rate Method

Unamort. Goodwill

Capital Expenditure
Life (yrs) Yr of Acq

New Asset
Acq Price Actg BV Disposal

Accounting
Rate Method

Taxation
Rate Method

Equity Funding 52.6% 52.6% 52.6% 52.6% 52.6%

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FINANCIAL ANALYSIS FOR New Investment
$000

Accounting Impact Total Revenue Expenditure EBITDA Accounting Depreciation Goodwill Amortisation EBIT Interest Expense Tax Payable Net Profit B4 Ab. Items Profit on Asset disposal Net Profit Cash Flow Analysis

2006 0 0 0 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 0

Total 0 0 0 0 0 0 0 0 0 0 0 Total PV of Capital Commitments after Year 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0

less

less less

less less

add

$000

Taxable Revenue Total Expenditure less Tax Payable less Interest Expense Operating Cash Flow
less less

Non Taxable Income Capital Expenditure add Asset Disposal Proceeds Net Cash Flow
add

5 Yr NPV Total NPV of Cash Flow

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$000

Economic Value Added Total Revenue Total Expenditure Tax Payable Interest Expense Asset Disposal Proceeds Economic Adjustments Economic Profit Capital Employed Capital Charge Economic Value Added 5 Yr PV of EVA

2006 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0 0

Total PV of Capital Commitments after Year 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

less less less add add

less

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FINANCIAL RESULTS FOR DIFFERENCE BETWEEN Status Quo AND New Investment
$000

Accounting Impact Total Revenue Expenditure EBITDA Accounting Depreciation Goodwill Amortisation EBIT Interest Expense Tax Payable Net Profit B4 Ab. Items Profit on Asset disposal Net Profit Cash Flow Analysis

2006 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0 0 0

Total 0 0 0 0 0 0 0 0 0 0 0

less

less less

less less

add

$000

2006 0 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0

Total PV of Capital Commitments after Year 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxable Revenue Total Expenditure less Tax Payable less Interest Expense Operating Cash Flow
less

less

Non Taxable Income Capital Expenditure add Asset Disposal Proceeds Net Cash Flow
add

5-Yr NPV of Cash Flow Infinite Terminal Value Total NPV of Cash Flow

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$000

Economic Value Added Total Revenue Total Expenditure Tax Payable Interest Expense Asset Disposal Proceeds Economic Adjustments Economic Profit Capital Employed Capital Charge Economic Value Added Total PV of EVA Infinite Terminal Value Total PV of EVA

2006 0 0 0 0 0 0 0 0 0 0 0 0 0

2007 0 0 0 0 0 0 0 0 0 0

2008 0 0 0 0 0 0 0 0 0 0

2009 0 0 0 0 0 0 0 0 0 0

2010 0 0 0 0 0 0 0 0 0 0

2011 0 0 0 0 0 0 0 0 0 0

Total PV of Capital Commitments after Year 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

less less less add add

less

COMPARABLE INVESTMENT SCORE
Return on Invested Capital (> WACC) Net Present Value of Cash Flows Cost/Benefit Ratio Payback Period (Year) Free Cash Flow after 2 years

ADDITIONAL ANALYSIS
Score 40.00% 0.00% 5.00% 0.00% 0.00% Implicit Annual Growth Rates Total Revenues Total Expenses Operating Cash Flow Net Cash Flow Economic Profit EVA Change in Company Gearing Before (Year 0) 47.37% After (Year 5) 47.37% Change 0.00% Modified Internal Rate of Return No solution

Result No Capital 0 No Upfront 5 0

Comparable Investment Score

45.00%

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Cash Flow Chart Analysis
Annual Cash Flow
1 1 1 1 1 1 0 0 0 0 0 2006 2007 2008 2009 2010 2011
1 1 1 1 1 1 0 0 0 0 0

Cumulative Cash Flow

2006

2007

2008

2009

2010

2011

Annual Cash Flow with Terminal Value 1 1
1

0 0 0 1 7
4

Year

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100

10

16

19

25

28

34

37

40

43

46

49

52

55

58

61

64

67

70

73

76

79

82

85

88

94

97

13

22

31

91

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Economic Value Added Chart Analysis
Annual Economic Value Added
1 1 1 1 1 1 0 0 0 0 0 2006 2007 2008 2009 2010 2011
1 1 1 1 1 1 0 0 0 0 0 2006 2007 2008 2009 2010 2011

Cumulative Economic Value Added

Annual EVA with Terminal Value 1 1 1
0 0

0 Year 100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97

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DOCUMENT INFO
Description: The Investment and Business Valuation template is ideal for evaluating a wide range of investment and business valuation scenarios. While it is based on the traditional discounted cash flow method of business valuation, it also provides the ability to evaluate economic value added valuation, accounting impact, and a range of other evaluation parameters. Furthermore, the step-by-step input flow makes usage straightforward, gaining quick results to drive Decision Making.