Perform a sensitivity analysis

Vary the following inputs to the two-tier valuation model:

Present Value of Firm: $904,416.26

WACC: 13.25%

Net Present Value $85,382.65

Growth Rate 8% FCF $92,213.27 Apple Terminal Value $4,841.20

High Growth phase at 8% for 1-3 years

Terminal Value FCF constant growth at 2.5%

Indicate the new valuation amount and the percentage change from the above "base" case.

Free Cash Flows

Increase the FCF by 10%

Decrease the FCF by 10%

Terminal Growth Rate

Increase the Terminal Growth Rate from 2.5% to 3.5%

Decrease the Terminal Growth Rate from 2.5% to 1.5%

WACC

Add 2% to the WACC (that is if the WACC is 7.5% make it 9.5%)

Subtract 2% from the WACC (that is if the WACC is 7.5% make it 5.5%