a) Use discounted cash flow analysis with a discount rate of 12 percent PA to calculate...

   

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a) Use discounted cash flow analysis with a discount rate of 12 percent PA to calculate the company's net present value at 30 June 2020 Gross Revenue Fixed Costs Variable Costs Working Capital Annual Investment 2018-2019 FFY: 2018-2019 FFY 1200 250 700 120 125 Expected % Change 3% 1% 2.5% 3% 3% 2019-2020 FFY 1236 252.5 717.5 123.6 128.75 1200 (Gross revenue) - 250 (Fixed Costs)- 700 (Variable Costs) - 75 (depreciation) - 24 (loan interest repayment) = 151 (EBIT) Operating Cash Flow = 151 (EBIT) - 151x0.3 (Tax) = $105.7 Discounted Cash Flow = 105.7(1/1+0.12)^0 = $105.7 a) Use discounted cash flow analysis with a discount rate of 12 percent PA to calculate the company's net present value at 30 June 2020 Gross Revenue Fixed Costs Variable Costs Working Capital Annual Investment 2018-2019 FFY: 2018-2019 FFY 1200 250 700 120 125 Expected % Change 3% 1% 2.5% 3% 3% 2019-2020 FFY 1236 252.5 717.5 123.6 128.75 1200 (Gross revenue) - 250 (Fixed Costs)- 700 (Variable Costs) - 75 (depreciation) - 24 (loan interest repayment) = 151 (EBIT) Operating Cash Flow = 151 (EBIT) - 151x0.3 (Tax) = $105.7 Discounted Cash Flow = 105.7(1/1+0.12)^0 = $105.7