Common use of Appraisal Model of the Income Approach Clause in Contracts

Appraisal Model of the Income Approach. The discounted cash flow model adopts entity cash flow. Its computing formula is: The basic format of entity cash flow model is: Entity value=entity cash flow t/ (1+ weighted average cost of capital) t Shareholders equity value=entity value— liability value Liability value = payable liability cash flow/ (1+equal risk liability cost) t The entity cash flow= after-tax profit before interest+ depreciation and Zhejiang Jingning Yingchuan Hydropower Development Co., Ltd. Share Transfer Project amortization — operation capital increment- capital expenditure

Appraisal Model of the Income Approach. The discounted cash flow model adopts entity cash flow. Its computing formula is: The basic format of entity cash flow model is: Entity value=value= entity cash flow t/ (1t/(1+ weighted average cost of capital) t capital)t Shareholders equity value=—entity value— value= liability value Liability value = payable liability cash flow/ (1+equal flow/(1+equal risk liability cost) t cost)t Qingtian Wuliting Hydropower Development Co., Ltd. Share Transfer Project The entity cash flow= flow = after-tax profit before interest+ depreciation and Zhejiang Jingning Yingchuan Hydropower Development Co., Ltd. Share Transfer Project amortization — amortization-operation capital increment- capital expenditure