Given

Gross Margin

40%

Fixed Costs

$ 2,000

Revenue Growth Rate for Years 1 - 5

10%

FCF Steady Growth

3%

Discount Rate

12%

Year 1 Revenue

$ 5,000

Tax Rate

21%

Terminal Year

5

1

2

3

4

5

Revenues

Gross profits

Fixed Costs

Net Operating Income

Taxes

Free Cash Flow

NPV for Years 1-5 Cash Flows

Terminal Value (as of Year 5)

PV of Terminal Value

Enterprise Value

PV of Terminal Value / Enterprise Value