Quality Management
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. APPLE
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. please no Google Docs. 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).