what is the appropriate discount rate for Netflix, Inc., and Amazon.com, Inc.s forecasted cash flows.

Netflix Balance Sheet

Netflix Inc.				2012	2013	2014
Assets
Current assets:
	Cash and cash equivalents			$ 290,291	$ 604,965	$ 1,113,608
	Short-term investments			457,787	595,440	494,888
	Current content library, net			1,368,162	1,706,421	2,125,702
	Other current assets			124,551	151,937	206,271
		Total current assets		2,240,791	3,058,763	3,940,469
Non-current content library, net				1,506,008	2,091,071	2,773,326
Property and equipment, net				131,681	133,605	149,875
Other non-current assets				89,410	129,124	192,981
		Total assets		$ 3,967,890	$ 5,412,563	$ 7,056,651
Liabilities and Stockholders' Equity
Current liabilities:
	Current content liabilities			$ 1,366,847	$ 1,775,983	$ 2,117,241
	Accounts payable			86,468	108,435	201,581
	Accrued expenses			53,139	54,018	69,746
	Deferred revenue			169,472	215,767	274,586
		Total current liabilities		1,675,926	2,154,203	2,663,154
Non-current content liabilities				1,076,622	1,345,590	1,575,832
Long-term debt				200,000	500,000	900,000
Long-term debt due to related party				200,000	-	-
Other non-current liabilities				70,669	79,209	59,957
		Total liabilities		3,223,217	4,079,002	5,198,943
Stockholders' equity:
				56	60	60
				301,616	777,441	1,042,810
				2,919	3,575	(4,446)
				440,082	552,485	819,284
		Total stockholders' equity		744,673	1,333,561	1,857,708
		Total liabilities and stockholders' equity		$ 3,967,890	$ 5,412,563	$ 7,056,651

Amazon Balance Sheet

Amazon.com Inc.
Assets			2012	2013	2014
Cash & Short Term Investments			$11.45B	$12.45B	$17.42B
	Cash Only		8.08B	8.66B	14.56B
	Short-Term Investments		3.36B	3.79B	2.86B
Total Accounts Receivable			3.36B	4.77B	5.61B
	Accounts Receivables, Net		2.6B	3B	3.3B
		Accounts Receivables, Gross	2.72B	3.15B	3.49B
		Bad Debt/Doubtful Accounts	(116M)	(153M)	(190M)
	Other Receivables		764M	1.77B	2.31B
Inventories			6.03B	7.41B	8.3B
	Finished Goods		0	0	0
	Work in Progress		0	0	0
	Raw Materials		0	0	0
	Progress Payments & Other		6.03B	7.41B	8.3B
Other Current Assets			453M	-	0
	Miscellaneous Current Assets		453M	-	-
Total Current Assets			21.3B	24.63B	31.33B
			2012	2013	2014
Net Property, Plant & Equipment			7.06B	10.95B	16.97B
	Property, Plant & Equipment - Gross		9.58B	14.81B	22.73B
		Buildings	2.97B	4.58B	7.15B
		Land & Improvements	-	-	-
		Computer Software and Equipment	866M	1.1B	1.3B
		Other Property, Plant & Equipment	174M	231M	304M
	Accumulated Depreciation		2.52B	3.86B	5.76B
Total Investments and Advances			151M	520M	886M
	Other Long-Term Investments		99M	482M	811M
Long-Term Note Receivable			0	0	0
Intangible Assets			3.28B	3.3B	4.08B
	Net Goodwill		2.55B	2.66B	3.32B
	Net Other Intangibles		725M	645M	764M
Other Assets			648M	538M	971M
	Tangible Other Assets		648M	538M	971M
Total Assets			32.56B	41.4B	56.34B
Liabilities & Shareholders' Equity
			2012	2013	2014
ST Debt & Current Portion LT Debt			1.14B	1.74B	3.6B
	Short Term Debt		0	0	0
	Current Portion of Long Term Debt		1.14B	1.74B	3.6B
Accounts Payable			13.32B	15.13B	16.46B
Income Tax Payable			-	-	-
Other Current Liabilities			4.55B	6.11B	8.03B
	Dividends Payable		-	-	-
	Accrued Payroll		-	-	-
	Miscellaneous Current Liabilities		4.55B	6.11B	8.03B
Total Current Liabilities			19B	22.98B	28.09B
Long-Term Debt			3.83B	5.18B	12.49B
	Long-Term Debt excl. Capitalized Leases		3.08B	3.19B	8.27B
		Non-Convertible Debt	3.08B	3.19B	8.27B
		Convertible Debt	0	0	0
	Capitalized Lease Obligations		746M	1.99B	4.22B
Provision for Risks & Charges			-	457M	510M
Deferred Taxes			(123M)	344M	750M
	Deferred Taxes - Credit		-	1.81B	2.86B
	Deferred Taxes - Debit		123M	1.47B	2.11B
Other Liabilities			1.53B	1.22B	1.66B
	Other Liabilities (excl. Deferred Income)		1.42B	1.22B	1.66B
	Deferred Income		108M	-	-
Total Liabilities			24.36B	31.65B	45.6B
Non-Equity Reserves			0	0	0
Preferred Stock (Carrying Value)			0	0	0
	Redeemable Preferred Stock		0	0	0
	Non-Redeemable Preferred Stock		0	0	0
Common Equity (Total)			8.19B	9.75B	10.74B
	Common Stock Par/Carry Value		5M	5M	5M
	Retained Earnings		1.92B	2.19B	1.95B
	ESOP Debt Guarantee		0	0	0
	Cumulative Translation Adjustment/Unrealized For. Exch. Gain		(250M)	(187M)	(512M)
	Unrealized Gain/Loss Marketable Securities		11M	2M	1M
	Revaluation Reserves		0	0	0
	Treasury Stock		(1.84B)	(1.84B)	(1.84B)
Total Shareholders' Equity			8.19B	9.75B	10.74B
Accumulated Minority Interest			0	0	0
Total Equity			8.19B	9.75B	10.74B
Liabilities & Shareholders' Equity			32.56B	41.4B	56.34B