Marriot Case Essay

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Advanced Corporate Finance Marriott Case The table below describes the unlevered after-tax cash flows for the years 1988 to 1997. The EBIT is assumed to grow by 4.5% per annum. The depreciation and capex are assumed to grow by 5% and 2% per annum, respectively. Given these rates, the cash flows grow from 16,06 in 1987 to 54,72 in 1997. A total rise of 240.72%. The annual growth per annum is 18.18% for 1987 to 1988, 16.39% for 1988 to 1989, 14.89% for 1989 to 1990, 13.79% for 1990 to 1991, 12.85% for 1991 to 1992, 12.06% for 1992 to 1993, 11.41% for 1993 to 1994, 10.84% for 1994 to 1995, 10.38% for 1995 to 1996 and 9.92% for 1996 to 1997. | |EBIT |Depreciation |Capex | | |Annual Growth Rates: |1,045 |1,05 |1,02 | | |Year |EBIT |Depreciation |Capex |Cash Flow | |1987 |82,40 |42,10 |79,60 |16,06 | |1988 |86,11 |44,21 |81,19 |18,98 | |1989 |89,98 |46,42 |82,82 |22,09 | |1990 |94,03 |48,74 |84,47 |25,38 | |1991 |98,26 |51,17 |86,16 |28,88 | |1992 |102,69 |53,73 |87,88 |32,59

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