Question: Case Study Part 2 Chipotle Net Present Value analysis of proposed strategys new cash flow and EPS/EBIT analysis NOTE: To construct the first cash flow
Case Study Part 2
Chipotle
Net Present Value analysis of proposed strategys new cash flow and EPS/EBIT analysis NOTE: To construct the first cash flow (cf1) at the very minimum, the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT and that figure will be your cfn for each year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources).
NPV=-cf0+ cf11+r1+cf21+r2+cf31+r3cfn1+rn
As of 12/31/18-
Total Revenue - 4,864,985
Cost of Revenue - 3,273,962
Research and Development - 0
General and Admin Expenses - 455,055
Non-Recurring - 0
Others - 568,336
Total Operating Expenses - 4,507,878
Total other income/expense net - (88,671)
Earnings Before Interest and Taxes - 357,107
Interest Expense - 0
Income Before Tax - 268,436
Income Tax Expense - 91,883
Cash and cash Equivalents - 249,953
Short term investments - 426,845
Net Receivables - 62,312
Inventory - 21,555
Long Term Investments - 0
Property - 1,379,254
Goodwill - 21,939
Other Assets 49,531
Accounts Payable - 113,071
Other Current Liabilities - 104,892
Other Liabilities - 374,189
Common Stock - 360
Retained Earning s- 2,573,617
Treasury Stock - (2,506,792)
Capital Surplus - 1,374,154
Other Stock Holder Equity - (6,236)
Total Stockholders equity - 1,441,339
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