Question

Discoumi rate for endowment Cast of debt WACC 10% 160 12% Horizon value FCF plus Horizon Value PVIF at WACC PV of FCF for respective year Enterprise value Less: Interest bearing debt Net value of enterprise $404.76 $1,689.31 0.9091 0.8264 $367.96 $1,396.04 $27,424 $0.00 $27,424 $8,513.43 0.7513 $6,396.14 $15,163.64 0.683 $10,356.77 $75,587 $14,346.24 0.6209 $8,907.58

          Discoumi rate for endowment
Cast of debt
WACC
10%
160
12%
Horizon value
FCF plus Horizon Value
PVIF at WACC
PV of FCF for respective year
Enterprise value
Less: Interest bearing debt
Net value of enterprise
$404.76 $1,689.31
0.9091
0.8264
$367.96 $1,396.04
$27,424
$0.00
$27,424
$8,513.43
0.7513
$6,396.14
$15,163.64
0.683
$10,356.77
$75,587
$14,346.24
0.6209
$8,907.58

Discoumi rate for endowment
Cast of debt
WACC
10%
160
12%
Horizon value
FCF plus Horizon Value
PVIF at WACC
PV of FCF for respective year
Enterprise value
Less: Interest bearing debt
Net value of enterprise
404.761,689.31
0.9091
0.8264
367.961,396.04
27,4240.00
27,4248,513.43
0.7513
6,396.1415,163.64
0.683
10,356.7775,587
14,346.24
0.62098,907.58

Added by Rebecca S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

12/17/2023

Step 1

Step 1: The cost of WACC is given as 12%. Show more…

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Please explain this Excel and the line items and numbers. o Cost of WACC 12% Horizon value FCF plus Horizon Value PVIF at WACC PV or FCF for respective year Enterprise value Less: Interest bearing debt Net value of enterprise $75,627 $5,513.43 $15,163.64 $14,346.24 0.7513 0.683 0.6209 $6,396.14 $10,356.77 $6,907.58 $404.76 $160.60 $367.96 1,691.15 8,264 $1,396.04 527,624 $0.00 $27,424