沃顿 高级公司理财学ampip09.pptVIP

Fin 203, Kihlstrom: Notes on American Pipeline * Pipeline Project:UFCF In computing the terminal value the PPI inflation rate of 2.5% was used Fin 203, Kihlstrom: Notes on American Pipeline * Book Terminal Value:Assumptions Assume a 30 year life and straight-line depreciation for accounting purposes. Depreciation starts one year after the actual investment Land and right of way is not depreciated The ‘92 book value is inflation adjusted assuming a 2.5% inflation rate (‘84 PPI) Fin 203, Kihlstrom: Notes on American Pipeline * Unlevering Celeron’s Beta Fin 203, Kihlstrom: Notes on American Pipeline * WACC Computation Debt = Notes Payable + LT Debt + Other Liabilities Fin 203, Kihlstrom: Notes on American Pipeline * NPVBook Terminal Value2.5% inflation rate Fin 203, Kihlstrom: Notes on American Pipeline * Pipeline Project:UFCF -In computing the terminal value a 5% inflation rate was used. -Other assumptions are the same. Fin 203, Kihlstrom: Notes on American Pipeline * NPVBook Terminal Value5% inflation rate Fin 203, Kihlstrom: Notes on American Pipeline * Alternative Terminal Values Fin 203, Kihlstrom: Notes on American Pipeline * Perpetuity Terminal Values for ‘92 These were calculated using Fin 203, Kihlstrom: Notes on American Pipeline * 30 Year Life Terminal Value Calculation When discounted at rate r, the present value of an asset that yields the cash flow in year t for 23 years is In the ‘92 there are 23 years left of the 30 year life. Year 1 is 1993. The cash flows are discounted back to 1992. Fin 203, Kihlstrom: Notes on American Pipeline * Pipeline Project:UFCFBased on Goodyear’s estimates of Investment Cost In computing the terminal value the PPI inflation rate of 2.5% was used Fin 203, Kihlstrom: Notes on American Pipeline * NPVBook Terminal Value2.5% inflation rate Fin 203, Kihlstrom: Notes on American Pipeline * Alternative Terminal Values In this case the UFCF are computed using Goodyear’s investment cost es