2. Assuming a 40% tax rate, what is Threshold worth? Assume that Threshold will not need any additional net working capital (NWC) in Year 2001, but will need an additional $95,000 NWC each year from 2002 to 2005. (Note: The Profit (loss) from racing events line in Exhibit 3 comes from Exhibit 2. Also, Exhibit 3 has some issues with terminology. The Net profit line is not really net profit. Moreover, it would be better to use revenue in place of income. Also, there is a major error in the choice of items to list under Expenses. See if you can spot the error and correct for it in your analysis. Your analysis will require use of the growing perpetuity/constant growth model in order to estimate a terminal value for your cash flows. Show your work for this question in an Excel attachment.) **PLEASE POST ANSWER IN EXCEL WITH FORMULAS**

59 - UMANO UVA 1.1347 2 THRESHOLD SPORTS LLC Low, 2003 Os hewande) TESTS SPORTS, LLC m.2001- Oste AM SI 1150 2003 S1.910 21 SI 100 20 53 2002 2004 52.13 1.535 1.700 1.540 1.725 +56 40 675 2 15 Battle Fit Sons US PRO TO BMC helves New Eye New Exe New Evet New The New Events New Evento Total Events SISES 315 350 500 250 Management fee income Special projects income not close front en von Masco Total income 337 Se 410 380 325 500 250 STAS 90 750 2 1 31,323 2100 108 1.312 4 53337 2.249 110 2.015 2 54.363 S1.5 565 32 SO $1,495 55,719 22 Salaries and overhead Special projects Depreciation Capital expenditures Expansion expense New business $1.29 55 16 50 Orience Fint Senes US PRO TO BMC Candle Octane $1.104 35 11 SO 20 24 31.650 1100 1.200 200 200 225 SESSA 1350 22 60 100 50 51.971 35 34 60 us 300 60 200 100 Newt New Event $1.700 1,300 1150 235 475 300 413 235 Total expenses a SM 51.75 1.260 1.315 236 500 330 500 245 475 225 SU 51 S1297 S. 52.51 51.925 1.325 1.383 -248 550 365 525 255 STO 250 5220 S2559 Eve New SSS Net profit (1) $441 $793 New How 3 14 New New Profesor Total Operations Cost Net Event income 51.351 51,789 Events Evet SONS $$ 36928 1984 322 SH 5752 51321 Network promosomwa De Confident for these por