WORKING CAPITAL CALCULATION

CASH 5% CA 45%
ACCOUNTS RECEIVABLE 20% CL 15%
INVENTORY 20%
ACCOUNTS PAYABLE 10% WC 30%
OTHER PAYABLES 5%
 0 1 2 3 4 5
UNITS SOLD 200 220 242 266 293
PRICE PER UNIT 458000 549600 659520 791424 949708.8
REVENUE (million) 91.6 120.912 159.6038 210.6771 278.0937
PARTS COST 59000 70800 84960 101952 122342.4
MATERIAL & LABOR COST 137000 164400 197280 236736 284083.2
VARIABLE COST PER UNIT 196000 235200 282240 338688 406425.6
TOTAL VARIABLE COST (million) 39.2 51.744 68.30208 90.15875 119.0095
MANUFACTURING OH (million) 9.2 10.58 12.167 13.99205 16.09086
DEPRECIATION (million) 6.48 6.48 6.48 6.48 6.48
VARIABLE S&A COSTS (million) 9.16 12.0912 15.96038 21.06771 27.80937
SEMI-FIXED SELLING COST (million) 4.58 5.267 6.05705 6.965608 8.010449
LICENSING FEE PER UNIT 23000 27600 33120 39744 47692.8
TOTAL LICENSING FEE (million) 4.6 6.072 8.01504 10.57985 13.96541
EBITDA 24.86 35.1578 49.10229 67.91311 93.2081
EBIT 18.38 28.6778 42.62229 61.43311 86.7281
INTEREST PAYMENTS 4.122 1.31904 1.741133 2.298295 3.03375
EBT 14.258 27.35876 40.88115 59.13481 83.69435
HOST GOVT TAX (42%) 5.98836 11.49068 17.17008 24.83662 35.15163
PAT 8.26964 15.86808 23.71107 34.29819 48.54272
OPERATING CF TO SUBSIDIARY 14.74964 22.34808 30.19107 40.77819 55.02272
WORKING CAPITAL REQUIREMENT 27.48 36.2736 47.88115 63.20312 83.42812
WORKING CAPITAL CASH FLOW 27.48 8.7936 11.60755 15.32197 20.225
NET CASH FLOW TO SUBSIDIARY -12.73036 13.55448 18.58352 25.45622 34.79773
PV -10.60863 9.412834 10.75435 12.27634 13.98443
NPV 66.61894
NPV $ 9.252631

LICENSING & OH CHARGES REMITTED 4.6 6.072 8.01504 10.57985 13.96541

WITHHOLDING TAX (20%) 0.92 1.2144 1.603008 2.115971 2.793081
TOTAL LICENSING FEES REMITTED 3.68 4.8576 6.412032 8.463882 11.17232
DIVIDEND PAYOUTS 0 0 0 14.40524 20.38794
TERMINAL VALUE 0 0 0 0 0
NET EARNINGS 3.68 4.8576 6.412032 22.86912 31.56027
EXCHANGE RATE 0.138889 0.151515 0.165289 0.180316 0.196708 0.21459
$ EARNINGS 0.557576 0.802909 1.156189 4.498536 6.772531
LOST SALES 0.648 0.742 0.93 0 0
NET $ EARNINGS -0.090424 0.060909 0.226189 4.498536 6.772531
PV -0.07863 0.046056 0.148723 2.572053 3.367145
NPV 38.50956
 6 7 8 9 10
322 354 390 429 472 64.8 EQUIPMENT COST
1139651 1367581 1641097 1969316 2363179 WC 27.48
367.0837 484.5505 639.6067 844.2808 1114.451 t 0.42
146810.9 176173.1 211407.7 253689.2 304427
340899.8 409079.8 490895.8 589074.9 706889.9
487710.7 585252.9 702303.4 842764.1 1011317
157.0926 207.3622 273.7181 361.3079 476.9265
18.50449 21.28016 24.47218 28.14301 32.36446
6.48 6.48 6.48 6.48 6.48
36.70837 48.45505 63.96067 84.42808 111.4451
9.212016 10.59382 12.18289 14.01032 16.11187
57231.36 68677.63 82413.16 98895.79 118674.9
18.43434 24.33332 32.11999 42.39838 55.96586
127.1319 172.5259 233.1528 313.9931 421.6369
120.6519 166.0459 226.6728 307.5131 415.1569
4.00455 5.286006 6.977527 9.210336 12.15764
116.6474 160.7599 219.6953 298.3027 402.9993
48.99189 67.51917 92.27202 125.2871 169.2597
67.65547 93.24076 127.4233 173.0156 233.7396
74.13547 99.72076 133.9033 179.4956 240.2196
110.1251 145.3652 191.882 253.2842 334.3352
26.697 35.24004 46.51685 61.40224 81.05096
47.43847 64.48072 87.38641 118.0933 159.1686
15.88705 17.99539 20.32329 22.88728 25.70662

18.43434 24.33332 32.11999 42.39838 55.96586

3.686867 4.866665 6.423997 8.479676 11.19317
14.74747 19.46666 25.69599 33.91871 44.77269
28.4153 39.16112 53.51777 72.66655 98.17062
0 0 0 0 3.9
43.16277 58.62778 79.21376 106.5853 146.8433
0.234099 0.25538 0.278597 0.303924 0.331553
10.10434 14.97238 22.06869 32.39378 48.68636
0 0 0 0 0
10.10434 14.97238 22.06869 32.39378 48.68636
4.368387 5.628672 7.214295 9.208335 12.03452
0 1 2 3 4 5
6 7 8 9 10
 COST OF CAPITAL

DOMESTIC DEBT 1
RATE 0.12
FOREIGN DEBT 0.6
RATE 0.16

DIVIDEND 3.2
SHARE PRICE 40

EFFECTIVE RATE OF DEBT 0.135

RATE OF EQUITY 0.08

WACC 0.102

WACC 10.20%