The risk-free rate is 2%, the market return rate is 8%, and beta is 0.52

a.) What is weighted average cost of capital using year 2018 information?

b.) How much did spend on capital expenditures in year 2018?

c.) Assume the company will generate operating cash inflows of $205 million the first year, $385 million the second year, $478 million the third year, $599 million the fourth year, $625 million the fifth year, and $100 million the sixth year. What is the NPV using the company's WACC calculated in 4a above and what is the IRR?

Starbucks Corporation (Nasdaq GS:SBUX) > Financials > Income Statement Income Statement For the Fiscal Period Ending 12 months Sep-28-2014 USD Reclassified 12 months Sep-27-2015 USD Reclassified 12 months Oct-02-2016 USD Reclassified 12 months Oct-01-2017 USD 12 months Sep-30-2018 USD Currency 16,447.8 19,162.7 Revenue Other Revenue Total Revenue 18,998.3 2,317.6 21,315.9 20,005.7 2.381.1 22,386.8 22,342.5 2,377.0 24,719.5 16,447.8 19,162.7 Cost Of Goods Sold Gross Profit 11,497.0 4.950.8 13,198.6 5.964.1 14,573.3 6,742.6 15,527.6 6,859.2 17,367.7 7,351.8 1, 107.9 1.196.7 1.450.7 1,755.4 Selling General & Admin Exp R&D Exp. D . Depreciation & Amort. Other Operating Expense/Income) 1,408.9 - 980.8 499.2 709,6 340.7 893.9 522.4 1,011,4 500.3 1,247.0 539 3 Other Operating Exp., Total 2,158.2 2,613.0 2,888.9 2,962.4 3,541.7 Operating Income 2,792.6 3,351.1 3,853.7 3,896.8 3,810.1 (70.5) (925) Interest Expense Interest and Invest. Income Net Interest Exp. (64.1) 35.4 (28.7) ( (81.3) 153.0 71.7 (170.3) 32.7 (137.6) (70.5) (92.5) 268.3 249.9 Income (Loss) from Affiliates Currency Exchange Gains (Loss) Other Non-Operating Inc. (Exp.) EBT Excl. Unusual Items 73.3 (24.2) 3,579.6 39.5 3,071.7 318.2 (106.8) 54.8 4,191.6 391.4 61.8 82.5 4,340.0 301.2 6.8 1572 4,137.7 - (153.5) (224.4) (3.6) 67.8 Restructuring Charges Merger & Related Restruct. Charges Impairment of Goodwill Gain (Loss) On Sale Of Invest Gain (Loss) On Sale Of Assets Legal Settlements Other Unusual Items EBT Incl. Unusual Items 391.6 (7.1) 1.6 5.4 36.9 94.1 1,372.8 497.5 20.2 (61.1) 3,903.0 3,159.7 4,198.6 4,317.5 5,780.0 Income Tax Expense Earnings from Cont. Ops. 1,092.0 2,067.7 1.143.7 2,759.3 1,379.7 2,818.9 1.432.6 2,884.9 1,262.0 4,518.0 Earnings of Discontinued Ops. Extraord. Item & Account Change Net Income to Company 2,067.7 2.759.3 2,818.9 2.884.9 4,518.0 Minority Int. in Earnings Net Income 0.4 2,068.1 (1.9) 2.757.4 (1.2) 2,817.7 (0.2) 2.884.2 0.3 4,518.3 Cash Flow For the Fiscal Period Ending 12 months Sep-28-2014 USD 12 months Sep-27-2015 USD Restated 12 months Oct-02-2016 USD Restated 12 months Oct-01-2017 USD 12 months Sep-30-2018 USD Currency Net Income Depreciation & Amort. Amort of Goodwill and Intangibles Depreciation & Amort., Total 2,068.1 739.7 8.7 748.4 2.757.4 883.8 50.0 933.8 2,817.7 972.8 57.3 1,030.1 2,884.7 1.009.6 57.5 1,067.1 4,518.3 1,119.4 186.5 1,305.9 (93.5) (3.7) (390.6) (6.1) - (702) (499.2) (1,376,4) 37.6 (16.0) 250.3 87.2 (123.6) 176.0 ( (Gain) Loss From Sale Of Assets (Gain) Loss On Sale Of Invest Asset Writedown & Restructuring Costs (Income) Loss on Equity Invest Stock-Based Compensation Tax Benefit from Stock Options Other Operating Activities Change in Acc. Receivable Change In Inventories Change in Acc. Payable Change in Unearned Rev. Change in Other Net Operating Assets Cash from Ops. (43.5) 183.2 (114.4) 46.0 (79.7) 14.3 (42.0) 209.8 (132.4) 138.0 (82.8) (207.9) 137.7 170.3 261.5 3,749.1 (26.9) 218.1 - 312.0 (55.6) (67.5) 46.9 180.4 248.8 60.4 164.2 (96.8) 14.0 46.4 130.8 (4.71 4,251.8 803.6 1310 (41.2) 391.6 7,109.4 (677.1) 11,937.8 140.8 (2.345.6) 607.8 4,697.9 (1.160.9) (1,519.4) (1,303.7) (284.3) Capital Expenditure Cash Acquisitions Divestitures Invest. in Marketable & Equity Securt. Net (Inc.) Dec. in Loans Originated/Sold Other Investing Activities Cash from Investing (1.976.4) (1,311.3) 608.2 312.4 (1.440.3) - 69.6 (877.1) - 24.9 (2.222.9) 85.4 529.7 60.9 - 362.3 - (19.1) (817.7) 6.8 (1,520.3) 543 (850.0) 5.6 (2,361.5) - 748.5 748.5 848.5 848.5 1,254.5 1,254.5 750.2 750.2 Short Term Debt issued Long-Term Debt Issued Total Debt Issued Short Term Debt Repaid Long-Term Debt Repaid Total Debt Repaid 5,584.1 5,584.1 (610.1) (610.1) (400.0) (400.0) Issuance of Common Stock Repurchase of Common Stock 139.7 (835.9) 191.8 (1,511.6) 160.7 (2,101.6) 150.8 (2,1253) 153.9 (7,196.2) Common Dividends Paid Total Dividends Paid (783.1) (783.1) (928.6) (928.6) (1.178.0) (1,178.0) (1,450.4 (1,450.4) (1,743.4) (1,743.4) Special Dividend Paid Other Financing Activities Cash from Financing 107.5 (623.3) (246.5) (2,256.5) (1,872.8) (41.2) (3,242.8) (3,079.1) Foreign Exchange Rate Adj. Net Change in Cash (34.1) (867,3) (1506) (178.3) (3.5) 598.7 10.8 333.5 (39.5) 6,294.0 Balance Sheet ASSETS Cash And Equivalents Short Term Investments Total Cash & ST Investments 1,708.4 135.4 1,843.8 1,530.1 81.3 1,611.4 2,128.8 134.4 2,263.2 2,462.3 228.6 2,690.9 8,756.3 181.5 8,937.8 631.0 719.0 768.8 Accounts Receivable Other Receivables Total Receivables 870.4 68.0 938.4 693.1 955.4 1,648.5 631.0 719.0 768.8 1,306.4 1,378.5 319.7 1,364.0 276.7 1,400.5 482.9 283.4 Inventory Prepaid Exp. Deferred Tax Assets, Curr. Other Current Assets Total Current Assets 1,090.9 256.9 317.4 28.7 4,168.7 50.8 3,971.0 27.7 4,757.9 13.4 5,283.4 24.5 12,494.2 Gross Property, Plant & Equipment Accumulated Depreciation Net Property, Plant & Equipment 8,581.1 (5,062.1) 3,519.0 9,641.8 (5,553.5) 4,088.3 10,573.3 (6,039.5) 4,533.8 11,584.0 (6,664.5) 4,919.5 13,197.1 (7,268.0) 5,929.1 Long-term Investments Goodwill Other Intangibles Deferred Tax Assets, LT Other Long-Term Assets Total Assets 833.3 856.2 273.5 903.3 198.9 10,752.9 664.5 1,575.4 520.4 1,180.8 415.9 12,416.3 1,496.2 1.719.6 516.3 885.4 403.3 14,312.5 1,023.9 1,539.2 441.4 795,4 362.8 14,365.6 602.4 3,541.6 1,042.2 134.7 412.2 24,156.4 533.7 1,198.7 684.2 884.3 730.6 894.3 782.5 1,179.3 1,034.7 891.0 LIABILITIES Accounts Payable Accrued Exp. Short-term Borrowings Curr. Port of LT Debt Curr. Income Taxes Payable Unearned Revenue, Current Other Current Liabilities Total Current Liabilities 272.0 794.5 239.8 3,038.7 259.0 983.8 836.8 3,648.1 399.9 368.4 1.171.2 982.4 4,546.8 226.6 1,288.5 1,032.1 4,220.7 349.9 286.6 1,642.9 1,190.8 5,684.2 2,048.3 2,347.5 3,185.3 3,932.6 Long-Term Debt Capital Leases Unearned Revenue, Non-Current Def. Tax Liability, Non-Curr. Other Non-Current Liabilities Total Liabilities 9,090.2 53.6 6,775.7 270.2 1,106.7 22,980.6 6.9 385.3 5,479.2 43.4 557.5 6,596.5 4.4 6.3 744.6 8,908.6 14.7 675.0 8,421.8 0.7 39.4 5,206.6 1.5 41.1 5,974.8 1.5 41.1 5,949.8 1.4 41.1 5,563.2 1.3 41.1 1,457.4 Common Stock Additional Paid In Capital Retained Earnings Treasury Stock Comprehensive Inc. and Other Total Common Equity 25.3 5,272.0 (199.4) 5,818.0 (108.4) 5,884.0 (155.6) 5,450.1 (330.3) 1,169.5 Minority Interest 1.7 1.8 6.7 6.9 6.3 Total Equity 5,273.7 5,819.8 5.890.7 5,457.0 1,175.8 Total Liabilities And Equity 10.752.9 12,416.3 14,312.5 14,365.6 24,156.4 Supplemental Items Total Shares Out. on Balance Sheet Date 1,499.1 1,485.1 1,460.5 1,431.6 1,309.1 Starbucks Corporation (Nasdaq GS:SBUX) > Financials > Income Statement Income Statement For the Fiscal Period Ending 12 months Sep-28-2014 USD Reclassified 12 months Sep-27-2015 USD Reclassified 12 months Oct-02-2016 USD Reclassified 12 months Oct-01-2017 USD 12 months Sep-30-2018 USD Currency 16,447.8 19,162.7 Revenue Other Revenue Total Revenue 18,998.3 2,317.6 21,315.9 20,005.7 2.381.1 22,386.8 22,342.5 2,377.0 24,719.5 16,447.8 19,162.7 Cost Of Goods Sold Gross Profit 11,497.0 4.950.8 13,198.6 5.964.1 14,573.3 6,742.6 15,527.6 6,859.2 17,367.7 7,351.8 1, 107.9 1.196.7 1.450.7 1,755.4 Selling General & Admin Exp R&D Exp. D . Depreciation & Amort. Other Operating Expense/Income) 1,408.9 - 980.8 499.2 709,6 340.7 893.9 522.4 1,011,4 500.3 1,247.0 539 3 Other Operating Exp., Total 2,158.2 2,613.0 2,888.9 2,962.4 3,541.7 Operating Income 2,792.6 3,351.1 3,853.7 3,896.8 3,810.1 (70.5) (925) Interest Expense Interest and Invest. Income Net Interest Exp. (64.1) 35.4 (28.7) ( (81.3) 153.0 71.7 (170.3) 32.7 (137.6) (70.5) (92.5) 268.3 249.9 Income (Loss) from Affiliates Currency Exchange Gains (Loss) Other Non-Operating Inc. (Exp.) EBT Excl. Unusual Items 73.3 (24.2) 3,579.6 39.5 3,071.7 318.2 (106.8) 54.8 4,191.6 391.4 61.8 82.5 4,340.0 301.2 6.8 1572 4,137.7 - (153.5) (224.4) (3.6) 67.8 Restructuring Charges Merger & Related Restruct. Charges Impairment of Goodwill Gain (Loss) On Sale Of Invest Gain (Loss) On Sale Of Assets Legal Settlements Other Unusual Items EBT Incl. Unusual Items 391.6 (7.1) 1.6 5.4 36.9 94.1 1,372.8 497.5 20.2 (61.1) 3,903.0 3,159.7 4,198.6 4,317.5 5,780.0 Income Tax Expense Earnings from Cont. Ops. 1,092.0 2,067.7 1.143.7 2,759.3 1,379.7 2,818.9 1.432.6 2,884.9 1,262.0 4,518.0 Earnings of Discontinued Ops. Extraord. Item & Account Change Net Income to Company 2,067.7 2.759.3 2,818.9 2.884.9 4,518.0 Minority Int. in Earnings Net Income 0.4 2,068.1 (1.9) 2.757.4 (1.2) 2,817.7 (0.2) 2.884.2 0.3 4,518.3 Cash Flow For the Fiscal Period Ending 12 months Sep-28-2014 USD 12 months Sep-27-2015 USD Restated 12 months Oct-02-2016 USD Restated 12 months Oct-01-2017 USD 12 months Sep-30-2018 USD Currency Net Income Depreciation & Amort. Amort of Goodwill and Intangibles Depreciation & Amort., Total 2,068.1 739.7 8.7 748.4 2.757.4 883.8 50.0 933.8 2,817.7 972.8 57.3 1,030.1 2,884.7 1.009.6 57.5 1,067.1 4,518.3 1,119.4 186.5 1,305.9 (93.5) (3.7) (390.6) (6.1) - (702) (499.2) (1,376,4) 37.6 (16.0) 250.3 87.2 (123.6) 176.0 ( (Gain) Loss From Sale Of Assets (Gain) Loss On Sale Of Invest Asset Writedown & Restructuring Costs (Income) Loss on Equity Invest Stock-Based Compensation Tax Benefit from Stock Options Other Operating Activities Change in Acc. Receivable Change In Inventories Change in Acc. Payable Change in Unearned Rev. Change in Other Net Operating Assets Cash from Ops. (43.5) 183.2 (114.4) 46.0 (79.7) 14.3 (42.0) 209.8 (132.4) 138.0 (82.8) (207.9) 137.7 170.3 261.5 3,749.1 (26.9) 218.1 - 312.0 (55.6) (67.5) 46.9 180.4 248.8 60.4 164.2 (96.8) 14.0 46.4 130.8 (4.71 4,251.8 803.6 1310 (41.2) 391.6 7,109.4 (677.1) 11,937.8 140.8 (2.345.6) 607.8 4,697.9 (1.160.9) (1,519.4) (1,303.7) (284.3) Capital Expenditure Cash Acquisitions Divestitures Invest. in Marketable & Equity Securt. Net (Inc.) Dec. in Loans Originated/Sold Other Investing Activities Cash from Investing (1.976.4) (1,311.3) 608.2 312.4 (1.440.3) - 69.6 (877.1) - 24.9 (2.222.9) 85.4 529.7 60.9 - 362.3 - (19.1) (817.7) 6.8 (1,520.3) 543 (850.0) 5.6 (2,361.5) - 748.5 748.5 848.5 848.5 1,254.5 1,254.5 750.2 750.2 Short Term Debt issued Long-Term Debt Issued Total Debt Issued Short Term Debt Repaid Long-Term Debt Repaid Total Debt Repaid 5,584.1 5,584.1 (610.1) (610.1) (400.0) (400.0) Issuance of Common Stock Repurchase of Common Stock 139.7 (835.9) 191.8 (1,511.6) 160.7 (2,101.6) 150.8 (2,1253) 153.9 (7,196.2) Common Dividends Paid Total Dividends Paid (783.1) (783.1) (928.6) (928.6) (1.178.0) (1,178.0) (1,450.4 (1,450.4) (1,743.4) (1,743.4) Special Dividend Paid Other Financing Activities Cash from Financing 107.5 (623.3) (246.5) (2,256.5) (1,872.8) (41.2) (3,242.8) (3,079.1) Foreign Exchange Rate Adj. Net Change in Cash (34.1) (867,3) (1506) (178.3) (3.5) 598.7 10.8 333.5 (39.5) 6,294.0 Balance Sheet ASSETS Cash And Equivalents Short Term Investments Total Cash & ST Investments 1,708.4 135.4 1,843.8 1,530.1 81.3 1,611.4 2,128.8 134.4 2,263.2 2,462.3 228.6 2,690.9 8,756.3 181.5 8,937.8 631.0 719.0 768.8 Accounts Receivable Other Receivables Total Receivables 870.4 68.0 938.4 693.1 955.4 1,648.5 631.0 719.0 768.8 1,306.4 1,378.5 319.7 1,364.0 276.7 1,400.5 482.9 283.4 Inventory Prepaid Exp. Deferred Tax Assets, Curr. Other Current Assets Total Current Assets 1,090.9 256.9 317.4 28.7 4,168.7 50.8 3,971.0 27.7 4,757.9 13.4 5,283.4 24.5 12,494.2 Gross Property, Plant & Equipment Accumulated Depreciation Net Property, Plant & Equipment 8,581.1 (5,062.1) 3,519.0 9,641.8 (5,553.5) 4,088.3 10,573.3 (6,039.5) 4,533.8 11,584.0 (6,664.5) 4,919.5 13,197.1 (7,268.0) 5,929.1 Long-term Investments Goodwill Other Intangibles Deferred Tax Assets, LT Other Long-Term Assets Total Assets 833.3 856.2 273.5 903.3 198.9 10,752.9 664.5 1,575.4 520.4 1,180.8 415.9 12,416.3 1,496.2 1.719.6 516.3 885.4 403.3 14,312.5 1,023.9 1,539.2 441.4 795,4 362.8 14,365.6 602.4 3,541.6 1,042.2 134.7 412.2 24,156.4 533.7 1,198.7 684.2 884.3 730.6 894.3 782.5 1,179.3 1,034.7 891.0 LIABILITIES Accounts Payable Accrued Exp. Short-term Borrowings Curr. Port of LT Debt Curr. Income Taxes Payable Unearned Revenue, Current Other Current Liabilities Total Current Liabilities 272.0 794.5 239.8 3,038.7 259.0 983.8 836.8 3,648.1 399.9 368.4 1.171.2 982.4 4,546.8 226.6 1,288.5 1,032.1 4,220.7 349.9 286.6 1,642.9 1,190.8 5,684.2 2,048.3 2,347.5 3,185.3 3,932.6 Long-Term Debt Capital Leases Unearned Revenue, Non-Current Def. Tax Liability, Non-Curr. Other Non-Current Liabilities Total Liabilities 9,090.2 53.6 6,775.7 270.2 1,106.7 22,980.6 6.9 385.3 5,479.2 43.4 557.5 6,596.5 4.4 6.3 744.6 8,908.6 14.7 675.0 8,421.8 0.7 39.4 5,206.6 1.5 41.1 5,974.8 1.5 41.1 5,949.8 1.4 41.1 5,563.2 1.3 41.1 1,457.4 Common Stock Additional Paid In Capital Retained Earnings Treasury Stock Comprehensive Inc. and Other Total Common Equity 25.3 5,272.0 (199.4) 5,818.0 (108.4) 5,884.0 (155.6) 5,450.1 (330.3) 1,169.5 Minority Interest 1.7 1.8 6.7 6.9 6.3 Total Equity 5,273.7 5,819.8 5.890.7 5,457.0 1,175.8 Total Liabilities And Equity 10.752.9 12,416.3 14,312.5 14,365.6 24,156.4 Supplemental Items Total Shares Out. on Balance Sheet Date 1,499.1 1,485.1 1,460.5 1,431.6 1,309.1