I paid $5 yestarday and no response. See the instruction. I will need approximattely 4 bullets explanation and 1 bullet with the NPV figure

THIS IS WHAT THE PROFESSOR WANTS DONE BASED ON THE PRO-FORMA FIGURES ABOVE

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).

This is the Grading Rubric for this section

NPV and EPS/EBIT

0 to 10 points

Develops an NPV figure/table.

Clearly articulates the cost of the strategy (-cf₀).

Clearly articulates the subsequent Pro-Forma cash flows (cf) for the NPV analysis.

Thoroughly analyzes the NP.

Includes and analyzes the EPS/EBIT figure/table.

The pro-forma is in excel form

Motorola Income Statement Period Ending: Total Revenue Cost of Revenue Gross Profit Operating Expenses 12/31/2016 12/31/2017 12/31/2018 ### $6,181,570,000 $6,336,109,250 ### $3,248,225,000 $3,329,430,625 ### $2,933,345,000 $3,006,678,625 12/31/2019 ### ### ### Research and Development Sales, General and Admin. Non-Recurring Items Other Operating Items Operating Income $553,000,000 $566,825,000 $580,995,625 ### $1,280,225,000 $1,312,230,625 $0 $0 $0 $0 $0 $0 ### $1,309,990,000 $1,561,960,850 $595,520,516 ### $0 $0 ### Add'l income/expense items ($18,000,000) ($18,911,250) ($19,384,031) Earnings Before Interest and Tax Interest Expense Earnings Before Tax Income Tax Minority Interest ### $1,075,225,000 $1,102,105,625 $205,000,000 $210,125,000 $215,378,125 $844,000,000 $865,100,000 $886,727,500 $282,000,000 $289,050,000 $296,276,250 $12,000,000 $12,300,000 $12,607,500 ### $220,762,578 $908,895,688 $303,683,156 $12,922,688 Equity Earnings/Loss Unconsolidated Subsidiary ($18,450,000) $0 $0 $0 $0 Net Income-Cont. Operations Net Income $562,000,000 $560,000,000 $576,050,000 $574,000,000 $590,451,250 $588,350,000 $605,212,531 $603,058,750 Net Income Applicable to Common $560,000,000 $574,000,000 $588,350,000 $603,058,750 Motorola Balance Sheet Period Ending: Current Assets Cash and Cash Equivalents Short-Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long-Term Assets Long-Term Investments Fixed Assets Goodwill Intangible Assets Other Assets Deferred Asset Charges Total Assets Current Liabilities Accounts Payable Short-Term Debt / Current Portion of Long-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Deferred Liability Charges Misc. Stocks Minority Interest Total Liabilities Stock Holders Equity Common Stocks Capital Surplus Retained Earnings Treasury Stock Other Equity Total Equity Total Liabilities & Equity 12/31/2016 12/31/2017 12/31/2018 12/31/2019 $1,030,000,000 $1,055,750,000 $1,082,143,750 $1,109,197,344 $0 $0 $0 $0 $1,410,000,000 $1,445,250,000 $1,481,381,250 $1,518,415,781 $273,000,000 $279,825,000 $286,820,625 $293,991,141 $755,000,000 $773,875,000 $793,221,875 $813,052,422 $3,468,000,000 $3,554,700,000 $3,643,567,500 $3,734,656,688 $238,000,000 $243,950,000 $250,048,750 $256,299,969 $789,000,000 $808,725,000 $828,943,125 $849,666,703 $728,000,000 $746,200,000 $764,855,000 $783,976,375 $0 $0 $0 $0 $1,021,000,000 $1,046,525,000 $1,072,688,125 $1,099,505,328 $2,219,000,000 $2,274,475,000 $2,331,336,875 $2,389,620,297 $8,463,000,000 $8,674,575,000 $8,891,439,375 $9,113,725,359 $2,664,000,000 $2,730,600,000 $2,798,865,000 $2,868,836,625 $4,000,000 $0 $2,668,000,000 $4,392,000,000 $2,355,000,000 $0 $0 $12,000,000 $9,427,000,000 $4,100,000 $0 $2,734,700,000 $4,501,800,000 $2,413,875,000 $0 $0 $12,300,000 $9,662,675,000 $4,202,500 $0 $2,803,067,500 $4,614,345,000 $2,474,221,875 $0 $0 $12,607,500 $9,904,241,875 $4,307,563 $0 $2,873,144,188 $4,729,703,625 $2,536,077,422 $0 $0 $12,922,688 $10,151,847,922 $2,000,000 $2,050,000 $2,101,250 $2,153,781 $203,000,000 $208,075,000 $213,276,875 $218,608,797 $1,148,000,000 $1,176,700,000 $1,206,117,500 $1,236,270,438 $0 $0 $0 $0 ### ($2,374,925,000) ### ($2,495,155,578) ($964,000,000) ($988,100,000) ### ($1,038,122,563) $8,463,000,000 $8,674,575,000 $8,891,439,375 $9,113,725,359 Amazon Cash Flows Period Ending: 12/31/2016 Net Income $560,000,000 Cash Flows-Operating Activities Depreciation $295,000,000 Net Income Adjustments $371,000,000 Changes in Operating Activities Accounts Receivable ($6,000,000) Changes in Inventories Other Operating Activities Liabilities $6,000,000 ($302,000,000) $241,000,000 12/31/2017 $574,000,000 12/31/2018 $588,350,000 12/31/2019 $603,058,750 $302,375,000 $309,934,375 $317,682,734 $380,275,000 $389,781,875 $399,526,422 ($6,150,000) ($6,303,750) ($6,461,344) $6,150,000 $6,303,750 $6,461,344 ($309,550,000) ($317,288,750) ($325,220,969) $247,025,000 $253,200,625 $259,530,641 Net Cash Flow-Operating $1,165,000,000 $1,194,125,000 $1,223,978,125 $1,254,577,578 Cash Flows-Investing Activities Capital Expenditures ($271,000,000) ($277,775,000) ($284,719,375) ($291,837,359) Investments $670,000 $686,750 $703,919 $721,517 Other Investing Activities ($731,670,000) ($749,961,750) ($768,710,794) ($787,928,564) Net Cash Flows-Investing ($1,002,000,000) ($1,027,050,000) Cash Flows-Financing Activities Sale and Purchase of Stock Net Borrowings Other Financing Activities Net Cash FlowsFinancing Effect of Exchange Rate Net Cash Flow ($749,000,000) ($13,000,000) $0 ### ### ($767,725,000) ($786,918,125) ($806,591,078) ($13,325,000) ($13,658,125) ($13,999,578) $0 $0 $0 ($1,042,000,000) ($1,068,050,000) ($1,094,751,250) ($1,122,120,031) ($71,000,000) ($950,000,000) ($72,775,000) ($74,594,375) ($973,750,000) ($998,093,750) ($76,459,234) ### Discount Rate Date Net CF Invested 12/31/2016 $ (950,000,000) $ 3,000,000 12/31/2017 $ (973,750,000) $ 9,000,000 12/31/2018 $ (998,093,750) $ 5,000,000 12/31/2019 $ (1,023,046,094) $ 9,000,000 Annual Discount Rate Initial Investment 1st Year Return 2nd Year Return 3rd Year Return 4th Year Return NPV Function 5% New Net Estimated returns $ (953,000,000) $ 150,000 $ (982,750,000) $ 450,000 $ (1,003,093,750) $ 250,000 $ (1,032,046,094) $ 450,000 NPV $ 1,137,196 $ $ $ $ $ $ 5% (2,500,000) 150,000 450,000 250,000 450,000 1,137,196