Please write out the formula and Excel to show it

Reference Nvidia Corporation. (2021). Annual Report 2021. And Financial Statements of Nvidia Corporation.

1. The spreadsheet gives assumptions about the year-over-year (YOY) growth of revenues and related expenses for 2023-2031. These assumptions come from analyst reports and Tesla management forecasts. Combining these sources gives a bumpy growth forecast for the next few years which is why the YOY growth estimates do not follow a smooth pattern at first. Use the base case assumptions in the excel sheet to build a forecast of earnings and free cash flows for the years 2023 to 2031. Specifically, start by forecasting revenues, research and development (R&D) and selling general and administrative expense (SG&A) each year. Then, using these forecasts, compute the associated "cost of revenue", research and development (R&D), selling general and administrative (SG&A), depreciation and capital expenditures. Cost of revenue are all costs of revenue not including depreciation, R&D and SG&A, so that Revenue - Cost of Revenue - R&D - SG&A = Earnings Before Interest Taxes Depreciation and Amortization (EBITDA). Subtract off depreciation to get EBIT. Continue as we did in our capital budgeting exercises until you eventually get to Free Cash Flow. You can assume a tax rate of 21% and negligible changes in net working capital. You can also assume an opportunity cost of capital of 12% for all the FCFs.

2. Beyond 2031, you will need to make an assumption about Tesla's long-term growth once it becomes a mature company. Start with the free cash flows you forecast for 2031 and assume that they will grow by 3% to 2032 and continue growing at 3% thereafter. You can then use the growing perpetuity formula to value all the cash flows after 2031. By doing this, you will have what is called a "terminal value" or "continuation value" for Tesla as of the end of 2031 (one year before the first cash flow in the growing perpetuity).

3. To avoid timing complexities, we will assume that it is now the beginning of 2023 and that the first cash flow (the 2023 FCF) will be generated exactly one-year from now, at the end of 2023. Discount all cash flows back to the beginning of 2023 using a 12% cost of capital. The sum of total of these discounted cash flows is the estimated total enterprise value of Tesla at the beginning of 2023. Enterprise Value = Equity + Debt - (Cash and Marketable Securities).