Identify a quantifiable measure for the company

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Reference no: EM131147073

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.

Locate 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 items (a) through (d); 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.

Click the Assignment Files tab to submit your assignment.

Note: Submit both the presentation and the Excel spreadsheet with all calculations.

Reference no: EM131147073

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