KEY ASSUMPTIONS

Investment Details
New Business Name of Investment

2011 First Year of Investment Input Denomination $000

Taxation & Amortisation

Rate 33.00% Company/Business Tax Rate Goodwill Amort (Yrs) 10

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

Capital and Cost of Capital

Equity 10,000 Current level of Company Equity (in denomination above)
Ke 15.00% Cost of Equity, or Calculate Risk-Free Rate 7.00%
Market Risk Premium 8.00%
Debt 9,000 Current level of Company Debt Equity Beta 1.00
Kd 7.00% Cost of Debt 15.00%

Timing End Discount cash flow evenly through Weighted Average Cost of Capital

C..
the year (Mid) or at the end (End). WACC = 10.12%
CE Beg Capital Employed calculated at the start Include existing asset input data in
of the year (Beg) or averaged (Avg). EVA capital charge?

Terminal Value
Include ✘ Include a terminal value after 5 years?
● Infinite ● Finite
Rate 2.00% Growth Rate after Yr 5 (or omit to use Yr 5 Growth Rate as per forecast).

Maturity 25 Year that the investment reaches maturity with growth rate at 0%
Terminal 40 Year that investment reaches redundancy with zero cash flows.

Capex 0 Ongoing annual capital expenditure requirement for terminal period

 0

1 1

Mid
End
Beg
Avg

0 0
1 1

1
 INPUT ASSUMPTIONS FOR New Business
$000 Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total Assumptions
2010 2011 2012 2013 2014 2015
Taxable Revenue
0
0
0
0
0

Non-Taxable Revenue
0
0
0
0
0

Operating Expenses
0
0
0
0
0
0
0
0
0
0

Investment Expenses Amort Yrs

1
1
1

Existing Assets Existing Asset Accounting Taxation Unamort.

Life (yrs) Age (Yrs) Disposal Current BV Rate Method Current BV Rate Method Goodwill

Capital Expenditure New Asset Accounting Taxation Equity

Life (yrs) Yr of Acq Acq Price Actg BV Disposal Rate Method Rate Method Funding

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 52.6%
52.6%
52.6%
52.6%
52.6%

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 FINANCIAL ANALYSIS FOR New Business
$000 Accounting Impact 2010 2011 2012 2013 2014 2015 Total

Total Revenue 0 0 0 0 0 0 0
less Expenditure 0 0 0 0 0 0 0
EBITDA 0 0 0 0 0 0 0

less Accounting Depreciation 0 0 0 0 0 0 0

less Goodwill Amortisation 0 0 0 0 0 0 0
EBIT 0 0 0 0 0 0 0

less Interest Expense 0 0 0 0 0 0 0

less Tax Payable 0 0 0 0 0 0 0
Net Profit B4 Ab. Items 0 0 0 0 0 0 0

add Profit on Asset disposal 0 0 0 0 0 0 0

Net Profit 0 0 0 0 0 0 0

$000 Cash Flow Analysis 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5

Taxable Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
Operating Cash Flow 0 0 0 0 0 0 0 0

add Non Taxable Income 0 0 0 0 0 0 0

less Capital Expenditure 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
Net Cash Flow 0 0 0 0 0 0 0 0

5 Yr NPV 0

Total NPV of Cash Flow 0

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$000 Economic Value Added 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5

Total Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
add Economic Adjustments 0 0 0 0 0 0 0 0
Economic Profit 0 0 0 0 0 0 0 0

Capital Employed 0 0 0 0 0 0 0 0
less Capital Charge 0 0 0 0 0 0 0 0
Economic Value Added 0 0 0 0 0 0 0 0

5 Yr PV of EVA 0

Total PV of EVA 0

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