We can put these assumptions into an Excel spreadsheet and begin to figure out how much this project is worth. To do that, we'll return to our recipe for forecasting free cash flows. First, let's forecast the EBIT for 2019. It should be 5% more than 2018's EBIT. (Here's a hint: look at the formula for 2018 to see how to do this). As with all Excel examples in this course, we think they are interesting, but none of them are mandatory. If you don't want to try it out, simply type anything into the highlighted cell and click submit, and you can continue. Having said that, it's a fun exercise to go through and doing it is the best way to really understand it. Note that all values in the following spreadsheets are in thousands.

Answer rating: 100% (QA)

Forecasting EBIT for 2019 We know that the EBIT for 2018 was 1000 ... View the full answer