Calculate EVA and CFROI for this Nova division for the 1989-1994 period. Also determine the 'free cash'
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Calculate EVA and CFROI for this Nova division for the 1989-1994 period. Also determine the 'free cash' flow generated by this division for the 1986-1994 period. (Free cash flow=EBIT+Depr-WC-CX Nova 1989=116.8 +50.8-(.3)-118.3=49.0)
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Historical and Pro Formas Divisions LPD Sales R&D EBITDA EBIT Depreciation Capital Expenditures Working Capital Capital Needs Free Cash Flow (CX) Free Cash Flow (Capital Needs &Taxes) Revised EBIT Revised EBITDA Revised Free Cash Flow Sales % Revised EBIT% EBITDA% Capital Needs % FCF% WC% of Total Depreciation % of Total CX % of Total 1986 1987 104.9 123 5.775 5.775 25.72 28.22 19.5 21.2 6.2 7.0 15.4 19.1 17.3 20.0 32.7 39.1 10.29 9.07 -14.81 -19.40 -25.06 13.725 15.425 18.25 19.95 22.44 26.41 1988 136.4 6.05 32.46 24.3 8.2 25.8 82% 82% 19.8% 19.8% 30.6% 30.6% 22.0 47.8 6.70 1989 1990 1991 150.6 179.5 214.8 6.7 6.99 7.41 36.94 47.20 59.70 26.9 32.3 38.7 10.0 14.9 21 36.2 79.2 29.8 0.2 10 31.4 36.5 89.2 61.2 0.71 -32.00 29.90 -10.30 -54.92 -16.98 20.2 25.31 31.29 30.24 40.21 52.29 13.9% 14.1% 14.2% 15.3% 17.3% 17.3% 19.4% 15.5% 14.8% 16.0% 16.6% 16.0% 17.0% 18.0% 19.6% 45.8% 45.0% 43.1% 30.8% 32.9% 20.4% 1992 1993 262.1 319.7 8.11 9.24 71.00 83.90 47.2 57.5 23.8 26.4 30.8 31 27.8 29.1 58.6 60.1 40.20 52.90 -6.48 0.80 39.09 48.26 62.89 74.66 19.6% 21.8% 23.4% 24.9% 22.9% 23.1% 21.6% 23.4% 21.3% 22.6% 23.2% 23.8% 35.3% 35.1% 35.9% 1994 390 10.57 99.90 70.2 29.7 31.1 33.2 64.3 68.80 7.52 59.63 89.33 82% 82% 82% 71% 61% 60% 19.8% 19.8% 19.8% 22.2% 23.3% 30.6% 30.6% 30.6% 11.6% 25.6% 25.2% 20.8% 65% 24.5% 24.3% Historical and Pro Formas Divisions LPD Sales R&D EBITDA EBIT Depreciation Capital Expenditures Working Capital Capital Needs Free Cash Flow (CX) Free Cash Flow (Capital Needs &Taxes) Revised EBIT Revised EBITDA Revised Free Cash Flow Sales % Revised EBIT% EBITDA% Capital Needs % FCF% WC% of Total Depreciation % of Total CX % of Total 1986 1987 104.9 123 5.775 5.775 25.72 28.22 19.5 21.2 6.2 7.0 15.4 19.1 17.3 20.0 32.7 39.1 10.29 9.07 -14.81 -19.40 -25.06 13.725 15.425 18.25 19.95 22.44 26.41 1988 136.4 6.05 32.46 24.3 8.2 25.8 82% 82% 19.8% 19.8% 30.6% 30.6% 22.0 47.8 6.70 1989 1990 1991 150.6 179.5 214.8 6.7 6.99 7.41 36.94 47.20 59.70 26.9 32.3 38.7 10.0 14.9 21 36.2 79.2 29.8 0.2 10 31.4 36.5 89.2 61.2 0.71 -32.00 29.90 -10.30 -54.92 -16.98 20.2 25.31 31.29 30.24 40.21 52.29 13.9% 14.1% 14.2% 15.3% 17.3% 17.3% 19.4% 15.5% 14.8% 16.0% 16.6% 16.0% 17.0% 18.0% 19.6% 45.8% 45.0% 43.1% 30.8% 32.9% 20.4% 1992 1993 262.1 319.7 8.11 9.24 71.00 83.90 47.2 57.5 23.8 26.4 30.8 31 27.8 29.1 58.6 60.1 40.20 52.90 -6.48 0.80 39.09 48.26 62.89 74.66 19.6% 21.8% 23.4% 24.9% 22.9% 23.1% 21.6% 23.4% 21.3% 22.6% 23.2% 23.8% 35.3% 35.1% 35.9% 1994 390 10.57 99.90 70.2 29.7 31.1 33.2 64.3 68.80 7.52 59.63 89.33 82% 82% 82% 71% 61% 60% 19.8% 19.8% 19.8% 22.2% 23.3% 30.6% 30.6% 30.6% 11.6% 25.6% 25.2% 20.8% 65% 24.5% 24.3% Historical and Pro Formas Divisions LPD Sales R&D EBITDA EBIT Depreciation Capital Expenditures Working Capital Capital Needs Free Cash Flow (CX) Free Cash Flow (Capital Needs &Taxes) Revised EBIT Revised EBITDA Revised Free Cash Flow Sales % Revised EBIT% EBITDA% Capital Needs % FCF% WC% of Total Depreciation % of Total CX % of Total 1986 1987 104.9 123 5.775 5.775 25.72 28.22 19.5 21.2 6.2 7.0 15.4 19.1 17.3 20.0 32.7 39.1 10.29 9.07 -14.81 -19.40 -25.06 13.725 15.425 18.25 19.95 22.44 26.41 1988 136.4 6.05 32.46 24.3 8.2 25.8 82% 82% 19.8% 19.8% 30.6% 30.6% 22.0 47.8 6.70 1989 1990 1991 150.6 179.5 214.8 6.7 6.99 7.41 36.94 47.20 59.70 26.9 32.3 38.7 10.0 14.9 21 36.2 79.2 29.8 0.2 10 31.4 36.5 89.2 61.2 0.71 -32.00 29.90 -10.30 -54.92 -16.98 20.2 25.31 31.29 30.24 40.21 52.29 13.9% 14.1% 14.2% 15.3% 17.3% 17.3% 19.4% 15.5% 14.8% 16.0% 16.6% 16.0% 17.0% 18.0% 19.6% 45.8% 45.0% 43.1% 30.8% 32.9% 20.4% 1992 1993 262.1 319.7 8.11 9.24 71.00 83.90 47.2 57.5 23.8 26.4 30.8 31 27.8 29.1 58.6 60.1 40.20 52.90 -6.48 0.80 39.09 48.26 62.89 74.66 19.6% 21.8% 23.4% 24.9% 22.9% 23.1% 21.6% 23.4% 21.3% 22.6% 23.2% 23.8% 35.3% 35.1% 35.9% 1994 390 10.57 99.90 70.2 29.7 31.1 33.2 64.3 68.80 7.52 59.63 89.33 82% 82% 82% 71% 61% 60% 19.8% 19.8% 19.8% 22.2% 23.3% 30.6% 30.6% 30.6% 11.6% 25.6% 25.2% 20.8% 65% 24.5% 24.3%
Expert Answer:
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To calculate Economic Value Added EVA we need to determine the Net Operating Profit After Taxes NOPAT and the Weighted Average Cost of Capital WACC 1 ... View the full answer
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