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https://www.intc.com/investor-relations/financials-and-filings/annual-reports-and-proxy/default.aspx Your boss just asked you to determent the net cash flows and NPV of a proposed new generation of mobile chips of Intel in

https://www.intc.com/investor-relations/financials-and-filings/annual-reports-and-proxy/default.aspx
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Your boss just asked you to determent the net cash flows and NPV of a proposed new generation of mobile chips of Intel in its finance division Capital expenditure to produce the new chips will initially require an investment of $1.2 Billion. The R&D that will require finishing the chips is $500 million this year. The product family is expected to have a life of five years. First year revenues for the new chip are expected to be $2,000 million. The chip family's revenues are expected to grow by 20% for the second year, then decrease by 10% for the third, decrease by 20% for the 4th and finally decrease by 50% for the 5th final year of sales. Yours job is to determine the rest of the cash flows associated with this project. Your boss has indicated that the operating cost and net working capital requirements are like the rest of the company's products. Use Intel's Investor relations web-page for information on financials. (10-k, 3 years of income statement and 2 years of balance sheet). 1. 2. Use the last fiscal year as your last year of actual data, therefore 2017-2022 (5 years) 3. Use the indirect method to Net income then FCF Your boss just asked you to determent the net cash flows and NPV of a proposed new generation of mobile chips of Intel in its finance division Capital expenditure to produce the new chips will initially require an investment of $1.2 Billion. The R&D that will require finishing the chips is $500 million this year. The product family is expected to have a life of five years. First year revenues for the new chip are expected to be $2,000 million. The chip family's revenues are expected to grow by 20% for the second year, then decrease by 10% for the third, decrease by 20% for the 4th and finally decrease by 50% for the 5th final year of sales. Yours job is to determine the rest of the cash flows associated with this project. Your boss has indicated that the operating cost and net working capital requirements are like the rest of the company's products. Use Intel's Investor relations web-page for information on financials. (10-k, 3 years of income statement and 2 years of balance sheet). 1. 2. Use the last fiscal year as your last year of actual data, therefore 2017-2022 (5 years) 3. Use the indirect method to Net income then FCF

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