Question: Please explain how to calculate NPV of EBIT perpetuity value (highlighted orange cell). I have noted down what the correct answer should be but unsure

Please explain how to calculate NPV of EBIT perpetuity value (highlighted orange cell). I have noted down what the correct answer should be but unsure what formula to use to get that answer.

Please explain how to calculate NPV of EBIT perpetuity value (highlighted orange

SNC Tax rate SNC WACC Note: ALL $$ in thousands Incremental Summary Income Statement ($ in thousands) Sales Cost of Sales EBIT Incremental Balance Sheet ($ in thousands) Accounts Receivable Inventories Accounts Payable EBIT Working capital required FCF $ in thousands PV NPV of EBIT (perpetuity) NPV of NWC (one time increase in 20%, NWC would remain the same) NPV of FCF 0.4 0.12 2013 $2,000 $1,833 $167 $603 $452 $151 2013 $100.20 $904 ($803.80) $835.00 $807.14 $27.86 2014 $2,000 $1,833 $167 $603 $452 $151 2014 $100.20 $100.20 2015 Post 2015 $2,000 $2,000 $1,833 $1,833 $167 $167 $603 $603 $452 $452 $151 $151 2015 Post 2015 $100.20 $100.20 $100.20 $100.20

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