HST 330-ASSIGNMENT

STEP 1- Download Annual report of the selected company from Annualreports.com Go to https://www.annualreports.com/ Enter the name of company in the search box and download the latest available Annual report. Once you select your company, go to Wiki in your blackboard, edit the table in wiki to include your name and company name. This is to avoid duplication. You cannot select an already selected company and therefore it's very important for you to enter your data in wiki as soon as you make a decision. You will be downloading Form 10-K (ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year 2019) for your selected company. This document is mandatory for all corporations registered under UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Form 10-K document is a gold mine of information about the filing company and you are required to go through important areas of this document to prepare a note about the company you selected. You must pick up only those data you need and leave out the rest. Once you download the document, go to the pages containing CONSOLIDATED STATEMENTS OF OPERATIONS and CONSOLIDATED BALANCE SHEETS. The data is available for two years. Most of the data you need to complete this assignment will be available from these two statements plus statement of cash flows and statement of shareholders' equity. The next step is to import this data into an Excel worksheet ( You may have to enter data physically as 10-K documents are typically in PDF format) and further calculations are to be done using this imported data. Name your excel file in this format: your first name - ID# - Company name. (If your name is John Everyone and your selected company is Amazon; your file name will be John-1000021-Amazon) Make sure to use dollar values with a separator for every thousand. (For example, 10 million dollars is written as $10,000,000). Even though you are required to use only two years' data for your calculations, addition of past data beyond 2 years will attract extra credit (10%).

STEP 9- Use Sheet 7 to paste the income statement for the years selected and project the values into next 3 years (for 2020,2021 and 2022) using FORECAST function in Excel. Calculate Operating cashflow for the projected years (Net income available for shareholders + Depreciation & Amortization). Assume, a new project going operational in December 2019 which will increase the cashflows for the years 2020 to 2022 by 25%. The cost of this project is, 10% of added cashflow from 2020 to 2022. This investment is done in 2019. Assume the cost of capital for this project funding is 7.5%. Calculate NPV of this project and state whether the project is acceptable. For example, if the total projected cashflows for 3 years is $100 million, additional inflow due to the new project will be $25 million (25% of $100 million). This cash inflow of $25 million will be generated equally (8.33 million each) in the 3 years. Cost of this project is $10 million (10% of 100 million). The funds cost 7.5%.