YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5	TOTAL
EBITDA	48,507	56,308	56,946	57,567	73,271	292,599
Less
Amortization:	917	917	917	917	917	4,585
	917	917	917	917	917	4,585
Income/(loss) before taxes:	47,590	55,391	56,029	56,650	72,354	288,014
Income taxes 40%	19,036	22,156	22,412	22,660	28,942	115,206
Net Income	28,554	33,235	33,617	33,990	43,412	172,808
Add - Back Amortization	917	917	917	917	917	4,585
Cash Flow	29,471	34,152	34,534	34,907	44,329	177,393

Assume that you are at day 1 of Year 1.

Assume a discount rate of 20%.

Required: (Document your answer for each item)

1. Calculate the present value for each year.
2. Determine the Residual Value (Year 5 earning discounted)
3. Calculate the Total Discounted Cash Flow.

Answer rating: 100% (QA)

To solve this problem we need to calculate the present value of the cash flows for each year and the ... View the full answer