Question: How do I get the Net Present Value analysis of proposed strategy's new cash flow and EPS/EBIT analysis NOTE: To construct the first cash flow

How do I get the Net Present Value analysis of proposed strategy's 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). Using this cash flow chart of McDonalds

Statement of Cash Flow

Consolidated Statement of Cash Flows - USD ($) $ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Operating activities

Net income

$ 4,529.3

$ 4,757.8

$ 5,585.9

Charges and credits:

Depreciation and amortization

1,555.7

1,644.5

1,585.1

Deferred income taxes

(1.4)

(90.7)

25.2

Share-based compensation

110

112.8

89.1

Other

177.6

369.5

26.8

Changes in working capital items:

Accounts receivable

(180.6)

27

56.2

Inventories, prepaid expenses and other current assets

44.9

(4.9)

(44.4)

Accounts payable

(15)

(74.7)

(60.7)

Income taxes

(64.4)

3.3

(154.4)

Other accrued liabilities

383

(14.3)

11.9

Cash provided by operations

6,539.1

6,730.3

7,120.7

Investing activities

Capital expenditures

(1,813.9)

(2,583.4)

(2,824.7)

Purchases of restaurant businesses

(140.6)

(170.5)

(181)

Sales of restaurant businesses and property

554.2

489.9

440.1

Other

(19.7)

(40.9)

(108.2)

Cash used for investing activities

(1,420)

(2,304.9)

(2,673.8)

Financing activities

Net short-term borrowings

589.7

510.4

(186.5)

Long-term financing issuances

10,220

1,540.6

1,417.2

Long-term financing repayments

(1,054.5)

(548.1)

(695.4)

Treasury stock purchases

(6,099.2)

(3,198.6)

(1,777.8)

Common stock dividends

(3,230.3)

(3,216.1)

(3,114.6)

Proceeds from stock option exercises

317.2

235.4

233.3

Excess tax benefit on share-based compensation

51.1

70.9

92.6

Other

(58.7)

(12.8)

(11.8)

Cash provided by (used for) financing activities

735.3

(4,618.3)

(4,043)

Effect of exchange rates on cash and equivalents

(246.8)

(527.9)

58.7

Cash and equivalents increase (decrease)

5,607.6

(720.8)

462.6

Cash and equivalents at beginning of year

2,077.9

2,798.7

2,336.1

Cash and equivalents at end of year

7,685.5

2,077.9

2,798.7

Supplemental cash flow disclosures

Interest paid

640.8

573.2

532.7

Income taxes paid

$ 1,985.4

$ 2,388.3

$ 2,546

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