According to the suggested questions, cash flows to equity = Net Income + Depreciation – Capital Expenditure + Net New Borrowing. All data is included in the sheet named Value. A problem we face is the value of Net New Borrowing. We know from the directions that SKS will maintain capital equal to 14% of loans. So Net borrowing = (1-14%)* amount disbursed – amount disbursed, and Net new borrowing is the difference between this quarter’s Net borrowing and previous quarter’s Net borrowing. We also calculate the cash flow to equity (annual). Then NPV these data, (use the discount rate and terminal growth rate) we have the total value of the branch. The difference between Total Value (quarter) and Total Value (annual) is acceptable. We verify the determinants of the value, such as cash flow to equity, discount rate, terminal growth rate, etc. The result shows that if the discount rate(r) and the terminal growth rate(g) become more and more close, the change of total value of one single branch is more. If SKS expands its branch network according to the schedule in Exhibit 3, in the year 2006, 80 branches will generate a cash flow to equity about 17.27 million. In year 2007, the 80 branches built in 2006 will generate a cash flow to equity about 80*481,136(I46), other 163 branches built in 2007 generate a cash flow to 163*215847(E46). At last, we get the cash flow to equity of each year, NPV them. Finally, we have the Total value(annual) of 508.35 million and terminal value(annual) of 11.62 million (in dollar).