Given the following information on Tyson Woods, compute the company's Terminal Value (TV) at year 4. Analysts expect next year's NOPAT (year 1) to be equal to $100.000, which will grow for the following 2 years (until year 3) at a rate of 5%. The expected LT g rate is 2%.
The structure of the NWC consists of: inventory 10% of NOPAT, receivables 15% of NOPAT, payables 20% of NOPAT. Every year Tyson Woods invests $10.000 in Capex to improve its production capacity. The depreciation is assumed to be 8% of NOPAT. Company WACC is 10%, cost of equity is 14% and the corporate tax rate is 30%. A. 328,350 B. 1,288,454 C. 1,405,688 D. 112,445 E. None of the above