To construct the first cash flow $($cf$1)$ the new revenue from your strategy$($s$)$ must be discounted back to the present value by calculating EBIT $($Operating Income on the Income Statement$)$ and that figure will be your cfn for each year. cf$0($initial cost of your strategy$),$ cf$1($discounted cash flow first year$),$ r $($opportunity cost of capital, the rate of the next best alternative use of cash$/$debt$/$equity resources$).$