I need the results analyzed from the excel sheet and worded

in the power PowerPoint slides 6-11 that state data analysis and tables inserted

from the excel sheet to support the information where it asks to do so. I also need

to describe the relationship between NPV and IRR. Hint: The key factor is the

discount rate used, which is slide 11.Apple Inc.

Do We Take a Bite?

Introduction

Apple Inc. – Brief Company Review?

Key Financial Data – 5 Years

Data Analysis

[Quality Control Measure – TBD]

Explanation of Results

Acquisition Decision Rationale

Conclusion

Apple Inc. History

Apple Inc. – Brief Company Review?

Key Financial Data (5 years)

Base Data Collection

Revenues – Increase by 8% per year

Expenses – Increase by 10% per year

Tax rate – 25%

Discount Rate – 10%

Key Financial Data (5 years)

Income Statement (chart from Excel?)

Cash Flow (Chart from Excel?)

Data Analysis – Projected Income

Insert table from Excel ?

Data Analysis – Projected Cash Flow

Insert table from Excel ?

Data Analysis – NPV & IRR

Insert table from Excel ?

add a couple bullets on the results from NPV

a couple bullets on the results from IRR

Data Analysis – NPV

Insert table from Excel ?

add a couple bullets on the results from NPV

Data Analysis – IRR

Insert table from Excel ?

add couple bullets on the results from IRR

Data Analysis – NPV & IRR Related

Insert table from Excel ?

Describe the relationship between NPV and IRR. Hint: The key factor is the discount rate used.

[Quality Control Measure]- To be defined

Key Data selected to Chart

Show Chart

Explain results

Explanation of Results

Need 3 or 4 bullets to explain what the results mean from:

NPV

IRR

Quality Control Measure

Acquisition Decision Rationale

Using the Results:

Explain if Apple should be purchased or not

Conclusion

Apple Inc. – Brief Company Review?

Key Financial Data – 5 Years

Data Analysis

[Quality Control Measure – TBD]

Explanation of Results

Acquisition Decision Rationale

References

Cleaves, C., Hobbs, M., & Noble, J. (2014). Business math (10th ed). Upper Saddle River, NJ: Pearson.

Etc….

Apple Incorporated

5 Year Forecasted Income Statement

June 20,2016

Actual

2015

Forecasted

2016

Forecasted

2017

Forecasted

2018

Forecasted

2019

Sales/ Revenue

231.28 B

249.78 B

269.76 B

291.35 B

314.65

Cost of Goods Sold

142.26 B

156.49 B

172.13 B

189.35 B

208.28

89.02 B

93.30 B

97.63 B

102.00 B

106.37

SG & A Expense

16.5 B

18.15 B

19.97 B

21.96 B

24.16

Pretax Income

72.52 B

75.15 B

77.67 B

80.04 B

82.21

Income Tax

19.12 B

18.79 B

19.42 B

20.01 B

20.55

Net Income

53.4 B

56.36 B

58.25 B

60.03 B

61.66

193.4

211.5

231.3

253.0

(Values in USD billions)

Gross Income

Assumptions:

Revenues increased by 8% ea

Expenses increased by 10% each year

Tax rate 25% beinning 2016

Tax rate 26% in 2015

Net Expenses & Taxes

177.9

400

Forecasted

Forecasted

2020

350

B

339.83 B

300

B

229.11 B

250

B

110.72 B

B

26.57 B

B

84.14 B

B

21.04 B

B

63.11 B

276.7

200

150

100

50

0

2015

2016

2017

2018

2019

Sales Revenue

Net Expenses & Taxes

2020

Apple Incorporated

5 Year Forecasted Cash Flow

June 20,2016

(Values in USD billions)

Actual

2015

Forecasted

2016

Forecasted

2017

Forecasted

2018

Net Income

53.40 B

56.36 B

58.25 B

60.03 B

Depreciation, Depletion & Amortization

11.26 B

12.39 B

13.62 B

14.99 B

Deffered Taxes

1.38 B

1.52 B

1.67 B

1.84 B

Other Funds

3.59 B

3.88 B

4.19 B

4.52 B

Funds from Opertions

69.62 B

75.19 B

81.20 B

87.70 B

Changes in Working Capital

11.65 B

12.58 B

13.59 B

14.68 B

Net Operating Cash Flow

81.27 B

87.77 B

94.79 B

102.38 B

Assumptions:

Revenues increas ed by 8% ea

Expenses increas e d by 10% each year

Working Capital was forecasted at .08% for simplicity

Working Capital is composed of Receivables, Accounts Payable,

Other Aseets/Liabilities

Forecasted

2019

Forecasted

2020

61.66 B

63.11 B

16.49 B

18.13 B

2.02 B

2.22 B

4.88 B

5.27 B

94.72 B

102.29 B

15.85 B

17.12 B

110.57 B

119.41 B

Duration to Payback (years)

5

Amount from Income Statement (in Millions) =

Revenue Increase per year =

Expenses Increase per year =

Tax rate =

Discount Rate =

53.40

8%

10%

25%

10%

How much is the Holding Company (Team B)

willing to invest to buy?

Holding Company Minimum IRR extpected

Income statement data:

($ in Billions)

Net Income

2015

53.40

2016

56.36

2017

58.25

2018

60.03

2019

61.66

2020

63.11

225.00 Billion

10%

Interna

Free Cash Flow

Initial outlay

2016

2017

2018

2019

2020

NPV =

Profitibility Index (PI) =

Internal Rate of Return =

($ in Billions)

$

(225.00)

$

56.36

$

58.25

$

60.03

$

61.66

$

63.11

Present Values

$

51.24

$

48.14

$

45.10

$

42.11

$

39.18

$0.77 Acceptable NPV

1.0034

10.1% Acceptable IRR

Recommendation:

Spending $225 billion to acquire Apple Inc. should result in a complete ROI

within 5 years . A positive NPV value for this initial outlay shows that the deal is

acceptable. The IRR is greateer than thte minimum for the purchasing company

and therefore is a second indicator tha t the acquisition at $225B is acceptable.

Total Apple Complaint Type

http://www.bbb.org/losangelessiliconvalley/business151

121

49

288

734

2059

Advertising / Sales Issues

Billing / Collection Issues

Delivery Issues

Guarantee / Warranty Issues

Other

Problems with Product / Service

Total Closed Complaints

Complant

3402

Count

Lightning USB Cable not working

iPhone cracked screen

iCloud not sync

iTunes lost music

Macbook hard drive

iPhone battery

iPhotos

Camera

Microsoft Offic/IOS support

Apple maps

829

654

142

98

78

63

60

48

45

42

900

800

700

600

500

400

Comulative Count

829

1483

1625

1723

1801

1864

1924

1972

2017

2059

400

300

200

100

0

Lightning

USB Cable

not working

iPhone

cracked

screen

iCloud not iTunes lost

sync

music

bb.org/losangelessiliconvalley/business-reviews/home-electronics/apple-in-cupertino-ca-198239/complaints

Comulative Percent

40.3

72.0

78.9

83.7

87.5

90.5

93.4

95.8

98.0

100.0

Apple Genius Bar Complaints

Count

Comulative Percent

100.0

90.0

80.0

70.0

60.0

50.0

40.0

40.0

30.0

20.0

10.0

0.0

iTunes lost Macbook

music

hard drive

iPhone

battery

iPhotos

Camera

Microsoft Apple maps

Offic/IOS

support

tino-ca-198239/complaints

A Pareto chart is composed of a column chart and a line graph,

it is used to analyze the quality problems and determine the

major factor in the production of quality problems or is used to

graphically summarize and display the relative importance of

the differences between groups of data or to display the most

common reasons for failure, customer complaints or product

defects.

Questions answered by the Pareto Chart:

What are the largest issues facing our products?

What 20 percent of sources are causing 80 percent of the

problems (80/20 Rule)?

Where should the focus be to achieve the greatest

improvements in out products?

Apple’s retail footprint has expanded to 480 stores spanning 17

countries. Listed is the top consumer complaints in the Apple

product line.

line graph,

mine the

or is used to

ortance of

y the most

or product

spanning 17

the Apple

Purchase answer to see full

attachment

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