Davelouis Ltd

Income Statement 2012 2013

Sales $24,750,000 $25,368,750
Costs and expenses -$15,840,000 -$15,728,625
Earnings before tax $8,910,000 $9,640,125
Tax (25%) -$2,227,500 -$2,410,031
Earnings After tax $6,682,500 $7,230,094

Year 2012 2013

Avg sales liquidity 92.00% 94.00%

Year 2012 2013

Accounts Receivable $1,980,000 $1,522,125

Year 2012 2013

Sales Growth rate 2.50%

Avg Sales Growth rate 1.76%

New Avg Sales Growth rate 3.52%

Average sales liquidity rate 92.17%

Average sales liquidity rate raise 3.00%

New Average sales liquidity rate 94.93%

Year 2012 2013

Cost & Exp versus Revenue Ratio 64.00% 62.00%

Avg C&E versus Revenue Ratio 65.50%

Increase Avg C&E vs Revenue Ratio 5.00%

New Avg C&E versus Revenue Ratio 68.77%

Opportunity cost 18%

Without the Project

 Projecte
Income Statement 2018 2019
Sales $27,468,460 $27,951,905
Costs and expenses -$17,991,841 -$18,308,498
Earnings before tax $9,476,619 $9,643,407
Tax (25%) -$2,369,155 -$2,410,852
Earnings After tax $7,107,464 $7,232,556

Projecte
Year 2018 2019
Accounts Receivable $2,151,696 $2,189,566

Projecte
FCF 2018 2019
EBIT $9,476,619 $9,643,407
Less Tax (25%) -$2,369,155 -$2,410,852
Less AR adjustments $547,642 -$37,870
FCF $7,655,106 $7,194,686

Year 2019 2020

Growth rate 1.76% 1.76%

Avg Project Growth rate 1.76%

FCF for year 2023 $7,714,721

NPV of perpetuity in year 2022 $47,504,437.63

Opportunity Cost of the Company 18.00%

With the Project

Projecte
Income Statement 2018 2019
Sales $27,943,544 $28,927,156
Costs and expenses -$19,218,172 -$19,894,652
Earnings before tax $8,725,372 $9,032,505
Tax (25%) -$2,181,343 -$2,258,126
Earnings After tax $6,544,029 $6,774,378

Projecte
Year 2018 2019
 Accounts Receivable $1,416,272 $1,466,125

Projecte
FCF 2018 2019
EBIT $8,725,372 $9,032,505
Less Tax (25%) -$2,181,343 -$2,258,126
Less AR adjustments $1,283,066 -$49,853
FCF $7,827,094 $6,724,526

Year 2019 2020

Growth rate 3.52% 3.52%

Avg Project Growth rate 3.52%

FCF for year 2023 $7,722,514

NPV of perpetuity in year 2022 $53,332,276.87

Opportunity Cost of the Company 18.00%

Discounted Cash Flow

Investment
Discounted Cash Flow 2017 2018
FCF with Project $7,827,094
FCF without Project $7,655,106
DCF -$1,957,484 $171,989

IRR 18.00%

NPV if make the Project $0

Maximum price payable for the Project $1,957,484

ouis Ltd

2014 2015 2016 2017

$25,673,175 $25,570,482 $26,542,161 $26,993,377
-$17,457,759 -$16,620,813 -$16,986,983 -$18,895,364
$8,215,416 $8,949,669 $9,555,178 $8,098,013
-$2,053,854 -$2,237,417 -$2,388,795 -$2,024,503
$6,161,562 $6,712,252 $7,166,384 $6,073,510

2014 2015 2016 2017

92.00% 91.00% 94.00% 90.00%

2014 2015 2016 2017

$2,053,854 $2,301,343 $1,592,530 $2,699,338

2014 2015 2016 2017

1.20% -0.40% 3.80% 1.70%

2014 2015 2016 2017

68.00% 65.00% 64.00% 70.00%
Projected
2020 2021 2022
$28,443,859 $28,944,470 $29,453,893
-$18,630,727 -$18,958,628 -$19,292,300
$9,813,131 $9,985,842 $10,161,593
-$2,453,283 -$2,496,461 -$2,540,398
$7,359,848 $7,489,382 $7,621,195

Projected
2020 2021 2022
$2,228,102 $2,267,317 $2,307,222

Projected
2020 2021 2022
$9,813,131 $9,985,842 $10,161,593
-$2,453,283 -$2,496,461 -$2,540,398
-$38,536 -$39,215 -$39,905
$7,321,312 $7,450,167 $7,581,290

2021 2022
1.76% 1.76%

Projected
2020 2021 2022
$29,945,392 $30,999,470 $32,090,651
-$20,594,943 -$21,319,885 -$22,070,345
$9,350,449 $9,679,584 $10,020,306
-$2,337,612 -$2,419,896 -$2,505,076
$7,012,837 $7,259,688 $7,515,229

Projected
2020 2021 2022
 $1,517,732 $1,571,156 $1,626,461

Projected
2020 2021 2022
$9,350,449 $9,679,584 $10,020,306
-$2,337,612 -$2,419,896 -$2,505,076
-$51,608 -$53,424 -$55,305
$6,961,229 $7,206,264 $7,459,925

2021 2022
3.52% 3.52%

2019 2020 2021 2022

$6,724,526 $6,961,229 $7,206,264 $60,792,201.52
$7,194,686 $7,321,312 $7,450,167 $55,085,727.74
-$470,160 -$360,083 -$243,903 $5,706,474