DSI

1,999

2,000

2,001

2,002

2,003

2,004

2,005

2,006

2,007

1,227,859

1,233,383,000

1,244,532,000

1,257,865,000

1,264,805,000

1,268,753,000

1,270,011,000

1,270,011,000

1,270,011,000

183,338

184,162,667

185,827,381

187,818,199

188,854,445

189,443,941

189,631,779

189,631,779

189,631,779

Free Cash Flow of Whirepool

CASH FLOW STATEMENT
1,999
2,000
2,001
2,002
2,003
EBIAT
($53,834,878) $1,176,217,398 $1,179,270,318 $1,197,246,591 $1,254,734,802
Add: Depreciation
$980,000
$2,760,000
$4,140,000
$4,960,000
Less: Changes in Working Capital
183,979,329
1,664,714
1,990,818
1,036,247
Less: Capital Expenditures
(4,900,000)
(8,900,000)
(6,900,000)
(4,100,000)
FREE CASH FLOW
(58,734,878) 1,352,276,727
1,176,795,032
1,199,277,409
1,260,731,049

Time period
Discount rate
PV of FCF
Sum of PVs of FCFs
Net Present Value

2,004

2,005

2,006

2,007

$1,258,958,768

$1,261,474,770

$1,263,232,772

$1,264,590,774

$4,960,000

$3,980,000

$2,200,000

$820,000

589,496

187,838

1,264,508,264

1,265,642,608

1,265,432,772

1,265,410,774

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

9.0%

(53,885,209)

1,138,184,267

908,701,683

849,598,352

819,388,678

753,984,962

692,349,848

635,078,037

582,630,273

6,326,030,892
6,326,030,892

Revenue & Margin Assumption (As per Class Work)

Projected Data (Exactly as discussed and done in the Class)

1,999 2,000 2,001 2,002 2,003 2,004 2,005 2,006 2,007

Northern Division
Starting Product Availability
Ending Product Availability
Total Improvement in Product Availability
% of Total Improvement by Year
Projected Improvement
Sales Improvement % of Improvement in Availability
Projected Sales Improvement
Units Sold in 1997
Revenues in 1997
Price per unit
Units Sold
Projected Revenues

83.2%
92.0%
8.8%

Margin on new revenues

Additional margin on existing revenues
Total Increase in margin

Extra Data
Total Additional Profit

40.0%

3.5%

3.5%

20.0%
1.8%

25.0%

25.0%

25.0%

0.9%

0.9%

0.4%

1,443
280,901
195

Base Revenues
New Revenues due to ERP
Gross Margin in 1997
Gross Margin % in 1997
Projected cumulative margin improvement by year
Projected gross margin percentage

40.0%

195

195

195

195

195

195

195

195

195

1,443

1,443

1,443

1,443

1,456

1,469

1,475

1,475

1,475

280,901

280,901

280,901

280,901

283,373

285,867

287,124

287,124

287,124

280,901

280,901

280,901

280,901

280,901

280,901

280,901

280,901

280,901

2,472

4,966

6,223

6,223

6,223

29,818
10.62%
0.00%

0.00%

0.00%

0.00%

0.13%

0.25%

0.25%

0.25%

0.25%

10.62%

10.62%

10.62%

10.62%

10.75%

10.87%

10.87%

10.87%

10.87%

266
365

540
702

676
702

676
702

676
702

631

1,242

1,378

1,378

1,378

$0

$971

$3,659

$6,419

$8,222

$9,179

$9,316

$9,316

$9,316