Net present value analysis of proposed strategy cash flow

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1. Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years and analysis

Each year must have 2 columns: 1 with your strategy and 1 without your strategy.

a. Include Pro-Forma ratios for the first year out with deltas contrasting from the most current year's ratios.

2. Net Present Value analysis of proposed strategy's new cash flow and EPS/EBIT analysis

NOTE: To construct the first cash flow (cf1) at the very minimum, the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT and that figure will be your cfn for each year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources).

3. Specific recommended strategy and long term objectives

Explain why you chose the strategy, and discuss how much the strategy will cost to implement and how much new revenue your strategy will create. Include your action timetable agenda for accomplishing your strategy.

4. Proposed new business model.

Reference no: EM132758312

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