For Costco Wholesale Co

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 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).