Using the financials for Starbucks 2016(ATTACHED), which you have, calculate the NPV and IRR of opening a new store. Make whatever assumptions you need to calculate the cash flow. Discount the cash flows at the WACC you already calculated for Starbucks.(WACC=5.65%)

Use the Starbucks 2016 financials to calculate the cash flow to be obtained in Second way, use 25,000 stores: Second way: 1-Use the cash from operating activities, year 2016. Use this cash flow as your cash flow at year 1. 2-Suppose the cash flows over 15 years grow at a constant rate. 3-Calculate the NPV and IRR of a store over 15 years using different cash flow growths. What is the minimum growth for a store to have a positive NPV?

Cash Flow Al numbers in thousands Period Ending 10/2/2016 Net Income 2,817,700 Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities 1,030,100 373,100 55,600 227,300 67,500 248,800 4,575,100 Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments 1,440,300 807.500 24,900 2,222,900 Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities 1,178,000 -1,834,900 1,254,500 114,400 1,750,000 Effect Of Exchange Rate Changes 3,500 Change In Cash and Cash Equivalents 598,700 Cash Flow Al numbers in thousands Period Ending 10/2/2016 Net Income 2,817,700 Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities 1,030,100 373,100 55,600 227,300 67,500 248,800 4,575,100 Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments 1,440,300 807.500 24,900 2,222,900 Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities 1,178,000 -1,834,900 1,254,500 114,400 1,750,000 Effect Of Exchange Rate Changes 3,500 Change In Cash and Cash Equivalents 598,700