NIKE INC, COMPANY
The team works for a company that is looking to make an
acquisition of another company. The team must make a recommendation as to
whether or not the company should make an offer based on the information below.
The team must present their recommendation and all supporting information to
the executive team.
Select a company with which the team is familiar. This
should be a publicly traded company with sufficient financial data available
online.
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%
Part I
Compute and analyze the financial data using a Microsoft®
Excel® spreadsheet. Make sure all calculations can be seen in the background of
the applicable spreadsheet cells. In other words, leave an audit trail so
others can see how you arrived at your calculations and analysis. Items should
be submitted in Microsoft® Excel®; indicate your recommendation in the
Microsoft® Excel® spreadsheet:
Calculate the 5-year projected income.
Calculate a 5-year projected cash flow.
Calculate net present value (NPV).
Calculate the internal rate of return (IRR).
Determine if the team would recommend acquiring this company
based on the 4 calculations above; do you recommend acquiring this company?
Identify a quantifiable measure for the company such as
service time, percent of errors, etc. Select one of the following quality
control tools to evaluate this data:
Flow chart
Cause and Effect (Fishbone) Diagram
Pareto Chart
Control Charts
Histograms
Scatter Diagrams
Part II
Create a 16-slide Microsoft® PowerPoint® presentation,
including detailed speaker notes or voiceover:
Define the answers you calculate in Part I.
Analyze the results you arrived at in Part I.
Interpret the answers you calculated.
Present the rationale behind each item and why it supports
the team’s decision.
Describe the relationship between NPV and IRR. Hint: The key
factor is the discount rate used.
Format your assignment consistent with APA guidelines.
0 comments