I need a powerpoint presentation done with the calculations attached following the instructions given. I also need a word document with what i should say during my presentation slide per slide

FIN515: Week 7 Project - Capital Budgeting Analysis Once again, your team is the key financial management team for your company. The company's CEO is now looking to expand its operations by investing in new property, plant, and equipment. Your team recently calculated the WACC for your company, which will now be useful in evaluating the project's effectiveness. You are now asked to do some capital budgeting analysis that will determine whether the company should invest in these new plant assets. The parameters for this project are: Your team will be using the same company for this project that you used in the Week 6 project. The company is now looking to expand its operations and wants you to do some analysis using key capital budgeting tools to do this. The parameters for this project are as follows. The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use the same marginal tax rate that you used in the Week 6 project. The hurdle rate for this project will be the WACC that you calculated in Week 6. Deliverable for this Project Prepare a narrated PowerPoint presentation using VoiceThread or Webex that will highlight the following items. Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project. The following capital budgeting results for the project o Net present value o Internal rate of return o Discounted payback period. Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project Once again, you may embed your Excel spreadsheets into your document. Be sure to follow APA standards for this project. 1 FIN515: Week 7 Project - Capital Budgeting Analysis Grading Rubric Possible Points Calculation of Cost of Project Estimation of Cash Flows Capital Budgeting Analysis Form Criteria and Point Range 0-3 8 12 12 8 4-6 7-9 10-12 All calculations are incorrect, or not presented. Calculation of PP&E, salvage value, or annual depreciation is incorrect. Cost of PP&E is mostly correct with some minor calculation errors. 0-3 All aspects of the cash flow calculation are incorrect, or not presented. 4-6 Significant, but identifiable errors are presented in the calculation to convert income to cash flows.. 0-2 All of the capital budgeting calculations are incorrect, or not presented. 3-4 Two errors noted in the NPV, IRR, and Discounted Payback Period calculations. 7-9 Cash flows are properly converted from accrual-based net income to cash flows from the project, with minor errors. 5-6 One error noted in the NPV, IRR and Discounted payback period calculations. Cost of Property, plant and Equipment and annual depreciation correctly calculated. 10-12 Cash flows are properly converted from accrual-based net income to cash flows from the project. 0-2 Poor writing and presentation skills, or no presentation provided. 3-4 Several problems noted in regard to writing and presentation skills. 5-6 Writing and presentation done well with a few minor errors 2 7-8 All of the NPV, IRR, and Discounted Payback period calculations are correct. 7-8 Virtually no errors in writing or presentation. Created by EDGAR Online, Inc. KRAFT HEINZ CO BALANCE_SHEET Form Type: 10-K Period End: Jan 03, 2016 Date Filed: Mar 03, 2016 Table Of Contents The Kraft Heinz Company Consolidated Balance Sheets (in millions of dollars) January 3, 2016 ASSETS Cash and cash equivalents Trade receivables (net of allowances of $32 at January 3, 2016 and $8 at December 28, 2014) Sold receivables Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Intangible assets, net Other assets TOTAL ASSETS LIABILITIES AND EQUITY Trade payables Accrued marketing Accrued postemployment costs Income taxes payable Interest payable Dividends payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes Accrued postemployment costs Other liabilities TOTAL LIABILITIES Commitments and Contingencies (Note 18) Redeemable noncontrolling interest 9.00% Series A cumulative redeemable preferred stock, 80,000 authorized and issued shares at January 3, 2016 and December 28, 2014, $.01 par value Equity: Common stock, $.01 par value (5,000,000,000 shares authorized, 1,214,391,614 shares issued and $ 4,837 $ 871 583 2,618 871 9,780 6,524 43,051 62,120 1,498 122,973 $ 2,844 856 328 417 401 762 1,324 6,932 25,151 21,497 2,405 752 56,737 23 8,320 1,213,978,752 shares outstanding at January 3, 2016; 4,000,000,000 shares authorized, 377,010,463 shares issued and outstanding at December 28, 2014) Warrants Additional paid-in capital Retained earnings/(deficit) Accumulated other comprehensive income/(losses) Treasury stock, at cost Total shareholders' equity Noncontrolling interest TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $ 12 58,375 (671) (31) 57,685 208 57,893 122,973 December 28, 2014 $ 2,298 $ 690 161 1,185 581 4,915 2,365 14,959 13,188 1,144 36,571 $ 1,651 297 15 232 167 730 3,092 13,358 3,867 287 282 20,886 29 8,320 $ 4 367 7,320 (574) 7,117 219 7,336 36,571 Created by EDGAR Online, Inc. KRAFT HEINZ CO TABLE112 Form Type: 10-K Period End: Jan 03, 2016 Date Filed: Mar 03, 2016 Table Of Contents Successor February 8 April 29 - June January 3, December 28, December 29, 7 2016 2014 2013 2013 (53 weeks) (52 weeks) (29 weeks) (6 (in millions) Depreciation and Amortization Expense: United States Canada Europe Rest of World Non-Operating(a) Total depreciation and amortization expense $ 484 36 83 88 49 $ 191 83 121 103 32 $ 125 28 60 55 12 $ 740 $ 530 $ 280 Predecessor (H. J. Heinz Company) April 29 - June 7 April 28, 2013 2013 weeks) (52 weeks) $ 12 4 9 10 5 $ 104 23 90 96 31 $ 40 $ 344 Created by EDGAR Online, Inc. KRAFT HEINZ CO CASH_FLOW Form Type: 10-K Period End: Jan 03, 2016 Date Filed: Mar 03, 2016 Table Of Contents (in millions) Successor January 3, (53 weeks) CASH FLOWS FROM OPERATING ACTIVITIES: Net income/(loss) Adjustments to reconcile net income/(loss) to operating cash flows: Depreciation and amortization Amortization of postretirement benefit plans prior service credits Amortization of inventory step-up Equity award compensation expense Deferred income tax provision Pension contributions Impairment losses on indefinite-lived intangible assets Nonmonetary currency devaluation Write-off of debt issuance costs Other items, net Changes in current assets and liabilities: Trade receivables Sold receivables Inventories Accounts payable Other current assets Other current liabilities Net cash provided by/(used for) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: $ December 28, 2016 2014 (52 weeks) 647 $ 672 740 530 (112) 347 133 (317) (286) (6) 8 (174) (102) 58 234 236 120 221 194 838 (422) 25 (119) 114 231 144 (129) 153 562 (20) 87 2,467 2,140 Capital expenditures Acquisitions of businesses, net of cash on hand Proceeds from net investment hedges Other investing activities, net Net cash used for investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of long-term debt Proceeds from issuance of long-term debt Debt issuance costs Net (payments)/proceeds on short-term debt Proceeds from issuance of Series A Preferred Stock Proceeds from issuance of common stock to Sponsors Proceeds from issuance of warrants Dividends paid-Series A Preferred Stock Dividends paid-common stock Other financing activities, net Net cash provided by/(used for) financing activities Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents: Net increase/(decrease) Balance at beginning of period Balance at end of period (648) (399) (9,468) 488 (76) 50 (9,704) (349) (12,314) (1,103) 14,834 (98) $ - (49) (3) - ### 10,000 - ### (900) (1,302) 12 (720) 6 10,183 (1,820) (407) (132) 2,539 2,298 4,837 (161) 2,459 2,298 $ Predecessor (H. J. Heinz Company) February 8 December 29, April 29 June 7, 2013 (29 weeks) $ April 28, 2013 (6 weeks) (72) $ 2013 (52 weeks) (192) $ 1,027 280 40 344 383 1 (298) (152) (1) 26 (20) (7) (4) 34 (87) (69) (40) ### ### ### (3) 114 (112) (9) 84 (90) 46 14 (37) 63 (183) (70) (47) 58 (103) (3) (49) 169 (46) 63 35 (373) 1,390 $ (202) (120) (399) (21,494) 25 ### 30 26 (21,671) (90) (373) (2,670) (440) (224) 12,575 (321) 2 - 205 - (1,641) 481 1,090 7,633 - - 8,500 367 - - (360) 26 ### 43 (666) (149) 24,109 86 256 (14) (30) (127) 2,459 2,459 (407) 2,477 2,070 1,146 1,331 2,477 $ $ New Ops The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (in millions) $ 652.40 Salvage Val The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of t $ 32.62 Annual EBIT The annual EBIT for this new project will be 18% of the project's cost. $ 117.43 Annual Depr The company will use the straight-line method to depreciate this equipment. Also assume that there $ 51.65 Marginal Tax Rate 35.00% WACC Market Cap 2.92% outstanding shares * share price $ 12,139,788 EV= market cap + debt + noncontrolling interest & preferred shares - total cash and cash equivalents $ 12,175,354 Free Cash Flow EBIT (1-tax rate) + (depreciation) + (amortization) - (change in net working capital) - (capital expenditure). EV= Free Cash Flow $ (2,680) 0 1 2 3 4 5 6 7 8 9 10 11 12 levered value of NPV = $ $ $ $ $ $ $ $ $ $ $ $ $ fcf (2,680) 6426.115 1,000 5718.165 1,000 4989.543 1,000 4239.645 1,000 3467.849 1,000 2673.518 1,000 1855.992 1,000 1014.594 1,000 148.6277 1,000 -742.6251 1,000 -1659.902 1,000 -2603.964 1,000 0 6426.114976866 3746.1149768657 Debt ratio to value ratio IRR = 0.29% 36% Since cost of equity (assuming equity is used to finance) lower tha Year fcf VL D = dxV 0 1 2 -2680 1000 1000 6426.115 5718.165 4989.543 18.77163 1658.268 1446.967 rty, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's bal ars. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. nt. Also assume that there will be no increases in net working capital each year. Use the same marginal tax rate that you used in the Week 6 - (capital expenditure). used to finance) lower than the IRR it is a great investment. 3 4 5 6 7 8 9 10 11 1000 1000 1000 1000 1000 1000 1000 1000 1000 4239.645 3467.849 2673.518 1855.992 1014.594 148.6277 -742.6251 -1659.902 -2603.964 1229.497 1005.676 775.3202 538.2377 294.2323 43.10204 -215.3613 -481.3717 -755.1496 12 1000 0 0 hat appears on the firm's balance sheet.) that you used in the Week 6 project