Monthly Shipping

Initail Shipping
Total Shipping Cost

First Month
4.3
4
8.3

Cost Per DVD

DVD Per Subscriber

17.55
5.6

Total Cost

98.28

Over All Cost

106.58

Discount Rate
Subscriber

20%
120000

One month leave

Six Months Leaves
Stay
Expected Value
Each Month PVs
Pvs Based Of Years
Year 1
Year 2
Year 3
Year 4
Year 5
NPV

70%
42%
28%

Assumptions %
Subscriber Growth
Stock Based Compensation
Sales and Marketing
Administrative
Product Development

Cost Per DVD For New Subscriber

New Subscriber
Total
Cost Per DVD For Old and Regular Subscriber
Old and Regular Subscriber
Total

Revenue

2
78.624
5.872
5.872
59.1472
41.074

4%
0
1%
2%
3%

4%
0
1%
2%
3%

1
$84,000
$3,500
$87,500

2
$87,500
$3,646
$91,146

17.55
$3,500
$61,425

17.55
$3,646
63984.375

19.55
$84,000
$1,642,200
$1,703,625

19.55
$87,500
$1,710,625
$1,774,609

-64.8325
7.298783
7.298783
7.298783
9.583476
-33.3527

Operating Cost

Revenue
Old Subscriber
New Subscriber
Total Subscriber

1
-106.58
-106.58
-106.58
-149.212
-124.343

Cost of Good Sold

$376,250

$391,927

$1,327,375

$1,382,682

Product And Development

Sales And Marketing
Administrative Cost
Stock Based on Compensation
Total Operating Cost
Net Income

2532
6611
$607.92
1252
11003
$1,316,372

2532
6678
$620.08
1252
11081
$1,371,601

Free Cash Flow

Ebit
Add Dep
Capx
Chang In NWC
Free Cash Flow

1
$1,316,372

2
$1,371,601

Gros Margin
Operating Cost

Year 1
3

10

5.872
5.872
5.872
5.872
78.624
5.872
5.872
5.872
5.872
5.872
5.872
5.872
5.872
4.1104
4.1104
4.1104
4.1104
34.66624
1.64416
1.64416
1.64416
2.3787037 1.9822531 1.6518776 1.37656464 9.67471136 0.38237907 0.31864922 0.26554102

10

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

3
$91,146
$3,798
$94,944

4
$94,944
$3,956
$98,900

5
$98,900
$4,121
$103,020

6
$103,020
$4,293
$107,313

7
$107,313
$4,471
$111,784

8
$111,784
$4,658
$116,442

9
$116,442
$4,852
$121,294

10
$121,294
$5,054
$126,348

17.55
$3,798
66650.391

17.55
17.55
17.55
17.55
17.55
17.55
17.55
$3,956
$4,121
$4,293
$4,471
$4,658
$4,852
$5,054
69427.49 72320.302 75333.6483 78472.5503 81742.2399 85148.1665 88696.0068

19.55
19.55
19.55
$91,146
$94,944
$98,900
$1,781,901 $1,856,147 $1,933,486
$1,848,551 $1,925,574 $2,005,807

19.55
$103,020
$2,014,048
$2,089,382

19.55
$107,313
$2,097,967
$2,176,440

19.55
$111,784
$2,185,382
$2,267,125

19.55
$116,442
$2,276,440
$2,361,588

19.55
$121,294
$2,371,292
$2,459,988

$408,257

$425,268

$442,988

$461,445

$480,672

$500,700

$521,563

$543,295

$1,440,294 $1,500,306 $1,562,819

$1,627,937

$1,695,767

$1,766,424

$1,840,025

$1,916,693

2532
2532
2532
6744
6812
6880
$632.48
$645.13
$658.03
1252
1252
1252
11160
11241
11322
$1,429,134 $1,489,066 $1,551,497

2532
6949
$671.19
1252
11404
$1,616,533

2532
7018
$684.62
1252
11486
$1,684,281

2532
7088
$698.31
1252
11570
$1,754,854

2532
7159
$712.28
1252
11655
$1,828,370

2532
7231
$726.52
1252
11741
$1,904,952

3
4
5
$1,429,134 $1,489,066 $1,551,497

6
$1,616,533

7
$1,684,281

8
$1,754,854

9
$1,828,370

10
$1,904,952

Year 2
11

12

5.872
5.872
5.872
5.872
5.872
5.872
5.872
5.872
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
0.22128418 0.18440349 1.37013333 1.14177778 0.95148148 0.79290123 0.66075103 0.55062586

11

12

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

11
$126,348
$5,264
$131,612

12
$131,612
$5,484
$137,096

1
$137,096
$5,712
$142,808

2
$142,808
$5,950
$148,759

3
$148,759
$6,198
$154,957

4
$154,957
$6,457
$161,413

5
$161,413
$6,726
$168,139

6
$168,139
$7,006
$175,145

17.55
17.55
17.55
17.55
17.55
17.55
17.55
17.55
$5,264
$5,484
$5,712
$5,950
$6,198
$6,457
$6,726
$7,006
92391.6737 96241.3268 100251.382 104428.523 108779.711 113312.199 118033.541 122951.605
19.55
$126,348
$2,470,095
$2,562,487

19.55
$131,612
$2,573,016
$2,669,257

19.55
$137,096
$2,680,225
$2,780,476

19.55
$142,808
$2,791,901
$2,896,330

19.55
$148,759
$2,908,230
$3,017,010

19.55
$154,957
$3,029,406
$3,142,719

19.55
$161,413
$3,155,632
$3,273,665

19.55
$168,139
$3,287,116
$3,410,068

$565,932

$589,512

$614,075

$639,662

$666,314

$694,078

$722,997

$753,122

$1,996,555

$2,079,745

$2,166,401

$2,256,668

$2,350,695

$2,448,641

$2,550,668

$2,656,946

2532
7303
$741.05
1252
11828
$1,984,727

2532
7376
$755.87
1252
11916
$2,067,829

2532
7450
$770.99
1252
12005
$2,154,396

2532
7524
$786.41
1252
12095
$2,244,573

2532
7600
$802.14
1252
12186
$2,338,510

2532
7676
$818.18
1252
12278
$2,436,364

2532
7752
$834.54
1252
12371
$2,538,297

2532
7830
$851.23
1252
12465
$2,644,481

11
$1,984,727

12
$2,067,829

1
$2,154,396

2
$2,244,573

3
$2,338,510

4
$2,436,364

5
$2,538,297

6
$2,644,481

ear 2
7

10

11

12

5.872
5.872
5.872
5.872
5.872
5.872
5.872
5.872
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
0.45885488 0.38237907 0.31864922 0.26554102 0.22128418 0.18440349 1.37013333 1.14177778

10

11

12

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

7
$175,145
$7,298
$182,442

8
$182,442
$7,602
$190,044

9
$190,044
$7,919
$197,963

10
$197,963
$8,248
$206,211

11
$206,211
$8,592
$214,803

12
$214,803
$8,950
$223,753

1
$223,753
$9,323
$233,076

2
$233,076
$9,712
$242,788

17.55
$7,298
128074.589

17.55
17.55
17.55
17.55
17.55
17.55
$7,602
$7,919
$8,248
$8,592
$8,950
$9,323
133411.03 138969.823 144760.232 150791.909 157074.905 163619.693

17.55
$9,712
170437.18

19.55
$175,145
$3,424,080
$3,552,154

19.55
$182,442
$3,566,750
$3,700,161

19.55
$233,076
$4,556,645
$4,727,082

19.55
$190,044
$3,715,364
$3,854,334

19.55
$197,963
$3,870,171
$4,014,931

19.55
$206,211
$4,031,428
$4,182,220

19.55
$214,803
$4,199,404
$4,356,479

19.55
$223,753
$4,374,379
$4,537,999

$784,502

$817,190

$851,240

$886,708

$923,654

$962,140

$1,002,229

$1,043,988

$2,767,652

$2,882,971

$3,003,094

$3,128,223

$3,258,566

$3,394,339

$3,535,770

$3,683,094

2532
7908
$868.26
1252
12560
$2,755,092

2532
7987
$885.62
1252
12657
$2,870,314

2532
8067
$903.34
1252
12754
$2,990,340

2532
8148
$921.40
1252
12853
$3,115,370

2532
8229
$939.83
1252
12953
$3,245,613

2532
8312
$958.63
1252
13054
$3,381,285

2532
8395
$977.80
1252
13156
$3,522,614

2532
8479
$997.36
1252
13260
$3,669,834

7
$2,755,092

8
$2,870,314

9
$2,990,340

10
$3,115,370

11
$3,245,613

12
$3,381,285

1
$3,522,614

2
$3,669,834

Year 3
3

10

5.872
5.872
5.872
5.872
5.872
5.872
5.872
5.872
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
1.64416
0.95148148 0.79290123 0.66075103 0.55062586 0.45885488 0.38237907 0.31864922 0.26554102

10

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

3
$242,788
$10,116
$252,904

4
$252,904
$10,538
$263,442

5
$263,442
$10,977
$274,419

6
$274,419
$11,434
$285,853

7
$285,853
$11,911
$297,763

8
$297,763
$12,407
$310,170

9
$310,170
$12,924
$323,094

10
$323,094
$13,462
$336,556

17.55
17.55
$10,116
$10,538
177538.729 184936.176

17.55
17.55
17.55
17.55
17.55
17.55
$10,977
$11,434
$11,911
$12,407
$12,924
$13,462
192641.85 200668.594 209029.785 217739.359 226811.833 236262.326

19.55
$242,788
$4,746,506
$4,924,044

19.55
$263,442
$5,150,288
$5,342,930

19.55
$252,904
$4,944,277
$5,129,213

19.55
$274,419
$5,364,883
$5,565,552

19.55
$285,853
$5,588,420
$5,797,450

19.55
$297,763
$5,821,271
$6,039,010

19.55
$310,170
$6,063,824
$6,290,636

19.55
$323,094
$6,316,483
$6,552,746

$1,087,488

$1,132,800

$1,180,000

$1,229,167

$1,280,382

$1,333,731

$1,389,303

$1,447,191

$3,836,556

$3,996,413

$4,162,930

$4,336,385

$4,517,068

$4,705,279

$4,901,333

$5,105,555

2532
8564
$1,017.30
1252
13365
$3,823,192

2532
8649
$1,037.65
1252
13470
$3,982,942

2532
8736
$1,058.40
1252
13578
$4,149,352

2532
8823
$1,079.57
1252
13686
$4,322,699

2532
8911
$1,101.16
1252
13796
$4,503,272

2532
9000
$1,123.19
1252
13907
$4,691,372

2532
9090
$1,145.65
1252
14020
$4,887,313

2532
9181
$1,168.56
1252
14133
$5,091,421

3
$3,823,192

4
$3,982,942

5
$4,149,352

6
$4,322,699

7
$4,503,272

8
$4,691,372

9
$4,887,313

10
$5,091,421

11

12

5.872
5.872
5.872
5.872
1.64416
1.64416
1.64416
1.64416
0.22128418 0.18440349 1.37013333 1.14177778

5.872
1.64416
0.951481481

5.872
1.64416
0.792901235

11

12

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

11
$336,556
$14,023
$350,579

12
$350,579
$14,607
$365,187

1
$365,187
$15,216
$380,403

2
$380,403
$15,850
$396,253

3
$396,253
$16,511
$412,763

4
$412,763
$17,198
$429,962

17.55
17.55
$14,023
$14,607
246106.589 256361.031

17.55
17.55
$15,216
$15,850
267042.74 278169.521

17.55
$16,511
289759.9177

17.55
$17,198
301833.2476

19.55
$336,556
$6,579,670
$6,825,777

19.55
$365,187
$7,139,399
$7,406,442

19.55
$396,253
$7,746,744
$8,036,504

19.55
$412,763
$8,069,525
$8,371,358

19.55
$350,579
$6,853,823
$7,110,184

19.55
$380,403
$7,436,874
$7,715,044

$1,507,491

$1,570,303

$1,635,732

$1,703,887

$1,774,883

$1,848,836

$5,318,286

$5,539,882

$5,770,710

$6,011,156

$6,261,621

$6,522,522

2532
9273
$1,191.93
1252
14249
$5,304,038

2532
9366
$1,215.77
1252
14365
$5,525,516

2532
9459
$1,240.09
1252
14483
$5,756,227

2532
9554
$1,264.89
1252
14603
$5,996,554

2532
9650
$1,290.19
1252
14723
$6,246,898

2532
9746
$1,315.99
1252
14846
$6,507,676

11
$5,304,038

12
$5,525,516

1
$5,756,227

2
$5,996,554

3
$6,246,898

4
$6,507,676

Year 4
5

5.872
1.64416
0.660751029

5.872
1.64416
0.550625857

5.872
1.64416
0.458854881

5.872
1.64416
0.382379068

5.872
1.64416
0.318649223

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

5
$429,962
$17,915
$447,877

6
$447,877
$18,662
$466,539

7
$466,539
$19,439
$485,978

8
$485,978
$20,249
$506,227

9
$506,227
$21,093
$527,319

17.55
$17,915
314409.6329

17.55
$18,662
327510.0343

17.55
$19,439
341156.2857

17.55
$20,249
355371.131

17.55
$21,093
370178.2614

19.55
$429,962
$8,405,755
$8,720,165

19.55
$447,877
$8,755,995
$9,083,505

19.55
$466,539
$9,120,828
$9,461,984

19.55
$485,978
$9,500,862
$9,856,234

19.55
$506,227
$9,896,732
$10,266,910

$1,925,871

$2,006,116

$2,089,704

$2,176,775

$2,267,474

$6,794,294

$7,077,389

$7,372,280

$7,679,459

$7,999,436

2532
9844
$1,342.31
1252
14970
$6,779,324

2532
9942
$1,369.16
1252
15095
$7,062,294

2532
10041
$1,396.54
1252
15222
$7,357,059

2532
10142
$1,424.47
1252
15350
$7,664,109

2532
10243
$1,452.96
1252
15480
$7,983,956

5
$6,779,324

6
$7,062,294

7
$7,357,059

8
$7,664,109

9
$7,983,956

10

11

12

5.872
1.64416
0.265541019

5.872
1.64416
0.221284183

5.872
1.64416
0.184403486

5.872
1.64416
1.370133333

5.872
1.64416
1.141777778

10

11

12

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

10
$527,319
$21,972
$549,291

11
$549,291
$22,887
$572,178

12
$572,178
$23,841
$596,019

1
$596,019
$24,834
$620,853

2
$620,853
$25,869
$646,722

17.55
$21,972
385602.3557

17.55
$22,887
401669.1205

17.55
$23,841
418405.3338

17.55
$24,834
435838.8894

17.55
$25,869
453998.8431

19.55
$527,319
$10,309,095
$10,694,698

19.55
$549,291
$10,738,641
$11,140,310

19.55
$572,178
$11,186,084
$11,604,490

19.55
$596,019
$11,652,171
$12,088,010

19.55
$620,853
$12,137,678
$12,591,677

$2,361,952

$2,460,366

$2,562,882

$2,669,668

$2,780,905

$8,332,746

$8,679,944

$9,041,608

$9,418,342

$9,810,773

2532
10346
$1,482.02
1252
15611
$8,317,135

2532
10449
$1,511.66
1252
15744
$8,664,199

2532
10554
$1,541.89
1252
15879
$9,025,729

2532
10659
$1,572.73
1252
16016
$9,402,326

2532
10766
$1,604.19
1252
16154
$9,794,619

10
$8,317,135

11
$8,664,199

12
$9,025,729

1
$9,402,326

2
$9,794,619

Year 5
3

5.872
1.64416
0.951481481

5.872
1.64416
0.792901235

5.872
1.64416
0.660751029

5.872
1.64416
0.550625857

5.872
1.64416
0.458854881

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

3
$646,722
$26,947
$673,669

4
$673,669
$28,070
$701,738

5
$701,738
$29,239
$730,977

6
$730,977
$30,457
$761,435

7
$761,435
$31,726
$793,161

17.55
$26,947
472915.4616

17.55
$28,070
492620.2725

17.55
$29,239
513146.1172

17.55
$30,457
534527.2054

17.55
$31,726
556799.1723

19.55
$646,722
$12,643,415
$13,116,331

19.55
$673,669
$13,170,224
$13,662,844

19.55
$701,738
$13,718,983
$14,232,129

19.55
$730,977
$14,290,608
$14,825,135

19.55
$761,435
$14,886,050
$15,442,849

$2,896,776

$3,017,475

$3,143,203

$3,274,169

$3,410,593

$10,219,555

$10,645,370

$11,088,927

$11,550,965

$12,032,256

2532
10873
$1,636.27
1252
16293
$10,203,262

2532
10982
$1,669.00
1252
16435
$10,628,935

2532
11092
$1,702.38
1252
16578
$11,072,349

2532
11203
$1,736.42
1252
16723
$11,534,242

2532
11315
$1,771.15
1252
16870
$12,015,386

3
$10,203,262

4
$10,628,935

5
$11,072,349

6
$11,534,242

7
$12,015,386

10

11

12

5.872
1.64416
0.382379068

5.872
1.64416
0.318649223

5.872
1.64416
0.265541019

5.872
1.64416
0.221284183

78.624
22.01472
2.469097351

10

11

12

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

4%
0
1%
2%
3%

8
$793,161
$33,048
$826,210

9
$826,210
$34,425
$860,635

10
$860,635
$35,860
$896,495

11
$896,495
$37,354
$933,849

12
$933,849
$38,910
$972,759

17.55
$33,048
579999.1378

17.55
$34,425
604165.7686

17.55
$35,860
629339.3423

17.55
$37,354
655561.8148

17.55
$38,910
682876.8905

19.55
$793,161
$15,506,302
$16,086,301

19.55
$826,210
$16,152,398
$16,756,563

19.55
$860,635
$16,825,414
$17,454,754

19.55
$896,495
$17,526,473
$18,182,035

19.55
$933,849
$18,256,743
$18,939,620

$3,552,701

$3,700,730

$3,854,928

$4,015,550

$4,182,864

$12,533,600

$13,055,833

$13,599,826

$14,166,485

$14,756,756

2532
11428
$1,806.57
1252
17018
$12,516,581

2532
11542
$1,842.71
1252
17169
$13,038,664

2532
11658
$1,879.56
1252
17321
$13,582,505

2532
11774
$1,917.15
1252
17475
$14,149,010

2532
11892
$1,955.49
1252
17631
$14,739,124

8
$12,516,581

9
$13,038,664

10
$13,582,505

11
$14,149,010

12
$14,739,124

Depreciation

8695