Overview: You now know how to evaluate the equity of a company and analyze the market economys behavior. Using this knowledge, you will predict your companys future behavior through forecasting, identify and describe business opportunities that the company should pursue, and explain the benefits and costs of these decisions.

In Millions	2016	2017	2018
Revenue	$13,370	$14,961 +12%	$15,784 +6%
Operating income	$4,855	$6,083	$6,713
Net income	$3,595	$3,682 +2%	$5,580 +51%
EBIDTA	$3,595	$3,741	$5,535

Prompt: In this milestone, you have two tasks. First, predict your companys future behavior through forecasting, projecting its likely performance based on the most recent year of financial information.

In Millions	2016	2017	2018
Cash from OA	$4,614	$5,363	$7,189
Cash from investing	$(650)	$(1,127)	$(78)
Cash from financing	$(3,810)	$(3,734)	$(6,329)
Free cash flow	$4,083	$4,668	$6,058

Cash & cash equivalent (end)

$1,154

$1,656

$2,438

Then, explain the incremental impact of a hypothetical but reasonable and simple new investment project, such as a new product or facility or a cost-cutting investment, as an initial step in thinking about the future. To justify your findings and projections, you need to include accurate and relevant data tables that explain how the numbers were informed by existing information and model different scenarios. Be sure to address the following critical elements: IV. Projections:

	2016	2017	2018
Cash and cash equivalent	$1,154	$1,656	$2,438
Total debt	$3,694	$5,047	$5,669
Shareholder equity	$10,473	$10,337	$8,907
Current ratio	3.29%	3.87%	3.27%
Debt/equity ratio	0.28	0.35	0.48
Price to earnings ratio	20.43	28.07	16.75

Using what you know about the companys financial health and performance, forecast its future performance. In particular, you should: A. Project the companys likely consolidated financial performance for each of the next three years. Support your analysis with an appendix spreadsheet showing actual results for the most recent year, along with your projections and assumptions. Remember that your supervisor is interested in fresh perspectives, so you should not just replicate existing financial statements: You should add other relevant calculations or disaggregations to help inform decisions. B. Modify your projections for the coming year to show a best- and worst-case scenario based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and including relevant calculations and disaggregations beyond those in the existing financial reports. C. Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate? For example, are they consistent with the companys mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections?

My company of focus is Texas instruments