Information Given

Identify the following information on the selected company:

• Revenues = increasing by 8% each year
• Expenses = increasing by 10% each year
• Tax rate = 25%
• Discount rate = 10%

(in billions) unless otherwise noted	2015	2016
Revenues		$21.3 21.3
Expenses		$827.6 M
Net Present Value
Internal Rate of Return
Tax Rate		32.9%
Discount Rate		0.941%
Projected Cash Flow

• Calculate the 5-year projected income.
• Calculate a 5-year projected cash flow.