EXHIBIT 10.13 Apparel Co: Free Cash Flow and Economic Profit Forecasts $ million Today Year 1...
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EXHIBIT 10.13 Apparel Co: Free Cash Flow and Economic Profit Forecasts $ million Today Year 1 Year 2 Year 3 Year 4 Year 5 Continuing value Revenues 250.0 265.0 280.9 297.8 315.6 334.6 354.6 Operating costs (225.0) (238.5) (252.8) (268.0) (284.1) (301.1) (319.2) Operating profit 25.0 26.5 28.1 29.8 31.6 33.5 35.5 Operating taxes (6.3) (6.6) (7.0) (7.4) (7.9) (8.4) (8.9) NOPLAT 18.8 19.9 21.1 22.3 23.7 25.1 26.6 Net investment Free cash flow (8.0) (8.4) (8.9) (9.5) (10.0) 11.9 12.6 13.4 14.2 15.1 Economic profit NOPLAT 19.9 21.1 22.3 23.7 25.1 26.6 Invested capital, 132.5 140.5 148.9 157.8 167.3 177.3 Cost of capital (percent) 10.0 10.0 10.0 10.0 10.0 10.0 Capital charge 13.3 14.0 14.9 15.8 16.7 17.7 Economic profit 6.6 7.0 7.4 7.9 8.4 8.9 1 Bounding error will cause small distortions in valuation EXHIBIT 10.13 Apparel Co: Free Cash Flow and Economic Profit Forecasts $ million Today Year 1 Year 2 Year 3 Year 4 Year 5 Continuing value Revenues 250.0 265.0 280.9 297.8 315.6 334.6 354.6 Operating costs (225.0) (238.5) (252.8) (268.0) (284.1) (301.1) (319.2) Operating profit 25.0 26.5 28.1 29.8 31.6 33.5 35.5 Operating taxes (6.3) (6.6) (7.0) (7.4) (7.9) (8.4) (8.9) NOPLAT 18.8 19.9 21.1 22.3 23.7 25.1 26.6 Net investment Free cash flow (8.0) (8.4) (8.9) (9.5) (10.0) 11.9 12.6 13.4 14.2 15.1 Economic profit NOPLAT 19.9 21.1 22.3 23.7 25.1 26.6 Invested capital, 132.5 140.5 148.9 157.8 167.3 177.3 Cost of capital (percent) 10.0 10.0 10.0 10.0 10.0 10.0 Capital charge 13.3 14.0 14.9 15.8 16.7 17.7 Economic profit 6.6 7.0 7.4 7.9 8.4 8.9 1 Bounding error will cause small distortions in valuation
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