Airbnb

1. Historical Ratio Analysis
2. Net Present Value analysis of proposed strategys new cash flow you may also use Excel to solve for this. From the income statement the change in operating income between your with and without strategy should serve as your cash inflow for each year. NOTE: To construct the first cash flow (cf₁) the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT (Operating Income on the Income Statement) and that figure will be your cf_n 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).