Rate of return demanded by equity investors. The Cost of Equity, using the Capital Asset Pricing Model Approach equals:

Cost of Equity (Ke) = Risk Free Rate (Rf) + (Beta * Market Risk Premium)

Cumulative Present Value of Cash Flows (v5020.00)

The Cumulative Present Value of Cash Flows (v5020.00) represents that portion of total Corporate Value (v5060) attributable to cash flows generated during the forecast period. It is the sum of the present value of the individual forecasted cash flows.

Present Value of Cash Flow (v5010.00) Cumulative PV of Cash Flows (v5020.00)

Year 1 $10 $10

Year 2 $15 $25

Year 3 $25 $50