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	<title>Sebastian Perrier &#187; FCF</title>
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	<description>Management - Sales - Marketing - Strategy</description>
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		<title>Free Cash Flows Calculation</title>
		<link>http://blog.sebastianperrier.com/2010/01/free-cash-flows-calculation/</link>
		<comments>http://blog.sebastianperrier.com/2010/01/free-cash-flows-calculation/#comments</comments>
		<pubDate>Sat, 30 Jan 2010 13:31:30 +0000</pubDate>
		<dc:creator>Sebastian Perrier</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[FCF]]></category>
		<category><![CDATA[free cash flows]]></category>
		<category><![CDATA[residual values]]></category>
		<category><![CDATA[terminal values]]></category>

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		<description><![CDATA[+ EBIT [from Income Statement, do not deduct interest bc WACC already includes Kd]
- TAX [income tax charged by Governments]
+ Depeciation [not a cash movement]
-  Delta Working Capital
- Delta Capital Expenditure
______________________
Free Cash Flow (FCF)


&#8211;&#62; PV=FCF/(1-WACC)*n
&#8211;&#62; NPV=PV- Initial Investment + PV of &#8220;Residual Values&#8221;


Residual Values:
There are various ways of calculating the residual values&#8230;.
a) Profit After Tax [...]]]></description>
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