Question: Type of Factor PV Factor at 20% Present Value at 20% A D E PV PV Year 2020 2021 2022 2023 2024 2025 2026 2027

Type of Factor PV Factor at 20% Present Value at 20% A D E PV PV Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Cash Flow Amount $ 400,000 430,000 451,500 487.620 519,315 545.281 599.809 629,800 670,737 727,749 PV PV PV PV PV PV PV 0.5787 0.4823 0.4019 0.3349 0.2791 235.179 208,713 182,615 167,407 146,491 129.989 117,531 0.1938 0.1615 $2,081,120 You want to determine the value of your business. You have determined the expected cash flows for the next ten years for the business and calculated the sum of the present values associated with these cash flows using a discount rate of 20%. 1. Referencing the sum of the Present Values of the Expected Cash Flows schedule above, what value should be included in box A,B,C, F of the schedule above? 2. Referencing the sum of the Present Values of the Expected Cash Flows schedule above--and assuming a long-term growth rate of 2.5% what is the terminal value for your business? 3. Referencing the Sum of the Present Values of the Expected Cash Flows schedule above-and assuming a long-term growth rate of 1% and a terminal value of $3,868,562 for your business-what is the present value of the terminal value for your business? 4. Referencing the Sum of the Present Values of the Expected Cash Flows schedule above -and assuming the present value of the terminal value of your business is $688,399 what is the equity value of your business
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