Thomas:

My question is not so much to do with the models as you presented them, but with the underlying formulas you used.

For instance:

In the discounted Cashflow Model you have
Cash Earnings: $1.70
Capital Exp: $0.50
FCF: $120 (which is obviously $170 - $0.50)

Then you have

Present Value of FCF: $1.09

How did you figure out the Present Value?

If I discount the $1.20 by 10% I get $1.08.

But if I use the same method used to calculate GST (Divide by 11) and take that number away from the $1.20, then I get $1.09 ($1.091 actually).

After that though, I have no idea how you are coming up with your Present Value FCF numbers.

For that matter, all your Present Value numbers are mysterious to me.

$15 future value is $9.31 ($9.32 in the other model).

How did you come up with that number - $9.31?

If I subtract 9.1% from $15, then 9.1% from that number, then 9.1% from that number, and so on for 5 years, I get $9.309165 ($9.31).

And I get 9.1% by using the GST calculation (Divide by 11) or in this case (1/11) x 100 = 9.1%

Is there some special calculator you are using to work this out? Or formula?

Michael Ross