Recreate the table (Exhibit B) for chapter 17 mini-case: ELAN and Royalty Pharma.

Actual Rates 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Millions of U.S. dollars Worldwide Salos year-over-year growth 1.631 1,884 2.286 2,418 2,530 2501 2.742 2.744 2.653 2609 2,611 2,082 10.5% 2,643 2.0% 15.5% 8.896 6.796 4.6% 2.4% 3.7% 0.1% -3.3% -1.7% 0.1% 18% 151 380 360 300 300 360 380 380 300 380 360 360 Royalties to Elan: So to $2 billion in sales Greater than $2 bn Total Royalties 25% 21 67 106 133 149 161 186 188 163 152 153 151 381 427 405 493 508 521 546 546 523 512 513 (77) (78) (80) (81) (83) (84) (06) (86) (91) (93) (75) 76 (1) 304 349 305 412 425 437 400 458 Exponses Pre-tax Income Less Taxes Net Income (90) 433 (54) 421 420 1% 125% (55) (57) (52) (3) 300 (3) 345 (53) 372 (57) 402 (53) 309 75 381 407 401 379 367 10.0% WACC Discount Factor PV of Nat Income 7.5% 1.0000 7.5% 7.5% 7.5% 7.5% 0.9302 0.8653 0.0050 0.7488 280 290 306 305 7595 7.5% 10.09 10.0% 0.6966 0.6480 05132 0.4006 248 206 187 100% 0.4241 10.09 03855 0.3505 75 161 142 Perpetuity value Discount Factor PV of Porpotuty 2.999 0.3505 1,061 $3,647 518 $ 7.04 1,787 $ 3.45 $10.49 NPV(cumulative PV) Shares outstanding (milions) Value per share Cash Cash value per sharo Elan, total value por share (29) Porpetuity Growth Rate Discounted value 2013-2020 Discounted value 2021-2024 Perpetuity value boyond 2024 Total Tysabri Value Cash Total Elan Value Por Total Sharo $1.977 $ 3.82 % of Total 54.2% Per Total Sharo $1,977 $ 3.82 % of Total 56.8% $ 610 $ 1.10 17.0% (4%) Porpotuity Growth Rato Discounted value 2013-2020 Discounted valuo 2021-2024 Perpetuity value beyond 2024 Total Tysabri Value $ 610 $ 1.10 17.0%. -2% $1.051 $ 2.03 28.8% -4% $3,647 $ 7.04 100.0% $1.787 $ 3.45 $5,434 $10.49 $ 883 $ 1.70 $3,479 $ 6.72 100.0% $1,787 $ 3.45 $5,266 $10.17 Cach Total Elan Value Notes: Valuation based on that presented in "Royalty Pharma's Hosponse to Elan's Tysabri Valuation," May 20, 2013, p. 12 Royalties paid for the first 12 months, approximately 2013 in longth, are at 12%. Parpotuity valuo (terminal value) assumes not rovonuos "grow" at -2% per annum indofinitaly and aro discounted at 10%. Assumes same 518 milion shares outstanding as Elan stated on May 23, 2013. Elan's tax loss carry-forwards reduce the effective tax rate to 15 through 2017: boginning in 2018 the royalty stroam is subject to Irish taxation at 12.5%. Royalty Pharma balioves that the WACC should riso from 7.50% to 10.0% beginning in 2020 when Tysabri goes off-patent Actual Rates 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Millions of U.S. dollars Worldwide Salos year-over-year growth 1.631 1,884 2.286 2,418 2,530 2501 2.742 2.744 2.653 2609 2,611 2,082 10.5% 2,643 2.0% 15.5% 8.896 6.796 4.6% 2.4% 3.7% 0.1% -3.3% -1.7% 0.1% 18% 151 380 360 300 300 360 380 380 300 380 360 360 Royalties to Elan: So to $2 billion in sales Greater than $2 bn Total Royalties 25% 21 67 106 133 149 161 186 188 163 152 153 151 381 427 405 493 508 521 546 546 523 512 513 (77) (78) (80) (81) (83) (84) (06) (86) (91) (93) (75) 76 (1) 304 349 305 412 425 437 400 458 Exponses Pre-tax Income Less Taxes Net Income (90) 433 (54) 421 420 1% 125% (55) (57) (52) (3) 300 (3) 345 (53) 372 (57) 402 (53) 309 75 381 407 401 379 367 10.0% WACC Discount Factor PV of Nat Income 7.5% 1.0000 7.5% 7.5% 7.5% 7.5% 0.9302 0.8653 0.0050 0.7488 280 290 306 305 7595 7.5% 10.09 10.0% 0.6966 0.6480 05132 0.4006 248 206 187 100% 0.4241 10.09 03855 0.3505 75 161 142 Perpetuity value Discount Factor PV of Porpotuty 2.999 0.3505 1,061 $3,647 518 $ 7.04 1,787 $ 3.45 $10.49 NPV(cumulative PV) Shares outstanding (milions) Value per share Cash Cash value per sharo Elan, total value por share (29) Porpetuity Growth Rate Discounted value 2013-2020 Discounted value 2021-2024 Perpetuity value boyond 2024 Total Tysabri Value Cash Total Elan Value Por Total Sharo $1.977 $ 3.82 % of Total 54.2% Per Total Sharo $1,977 $ 3.82 % of Total 56.8% $ 610 $ 1.10 17.0% (4%) Porpotuity Growth Rato Discounted value 2013-2020 Discounted valuo 2021-2024 Perpetuity value beyond 2024 Total Tysabri Value $ 610 $ 1.10 17.0%. -2% $1.051 $ 2.03 28.8% -4% $3,647 $ 7.04 100.0% $1.787 $ 3.45 $5,434 $10.49 $ 883 $ 1.70 $3,479 $ 6.72 100.0% $1,787 $ 3.45 $5,266 $10.17 Cach Total Elan Value Notes: Valuation based on that presented in "Royalty Pharma's Hosponse to Elan's Tysabri Valuation," May 20, 2013, p. 12 Royalties paid for the first 12 months, approximately 2013 in longth, are at 12%. Parpotuity valuo (terminal value) assumes not rovonuos "grow" at -2% per annum indofinitaly and aro discounted at 10%. Assumes same 518 milion shares outstanding as Elan stated on May 23, 2013. Elan's tax loss carry-forwards reduce the effective tax rate to 15 through 2017: boginning in 2018 the royalty stroam is subject to Irish taxation at 12.5%. Royalty Pharma balioves that the WACC should riso from 7.50% to 10.0% beginning in 2020 when Tysabri goes off-patent