I am writing a long final project about a public offered company Cree.

However, I have this trouble which is how to discuss Net Present Value and somehow apply it to this firm.

I cannot guess on this one, I thought about a plethora of ideas but I am just a student, and not the knowledgeable here.

How can a student speak of this topic of net present value over a public company? The textbook offers little info and my professor is hard to get a hold of. I have access to the firm's 10K, and investor resources.

All I am prompted with is :"7. Present value. Calculate present value using applicable present

value tables."

I want a basic explanation but I can't think of how to write it on this one.

I know the firm's average weighted cost of capital, their annual cash flows, etc. They do not pay any dividends, are in negative growth, etc. I just need some sort of working example or ideas of how to talk about Cree's net present value. I'm at a total loss thus far. If they paid dividends I could apply a basic formula for net present value, etc--but I'm not sure how to apply the "textbook" to the real world.

Here is what I've been working on table of content wise--that last section is all I'm left with but it's a hard one for me to grasp.

1. Introduction 2

2. Selection of the Company 3

3. Short and Long-Range Financial Problems 4

Overview 4

FIrm History and Innovations 4

Firm Financials, Competition, and Potential Problems 5

2015: Competition and Pivot Points 5

Cree Financial Statement 2015: Discussing Sales and Paradigm Shift 7

Margins and Gross Profit: Numerics of Competition and Hardships 9

Cree Financial Statement 2017: Progress Assessment 11

Summary 14

4. Optimal capital structure to manage financial performance. 15

Prelude 15

Ratios and Capital Structure 16

5. Financial statements and financial decisions. 19

6. Articulate how the cost of capital is defined and measured. 20

7. Present value. 22

8. Summary. 22