A part of a larger project, I need between 2-3 pages on Net Present Value analysis on Chipotle Grill in APA format. This must be written at a doctoral level of analysis, it must also include EPS/EBIT analysis.
Ive attached instructions, rubric grading criteria, and a link to historical financials from Chipotle.
I have included a pro forma statement based on the proposed strategy numbers that must be used.
There is some flexibility with the numbers, I primarily am looking for clean analysis and the numbers being in the right ballpark.
Assignment instructions:
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).
From the rubric:
Develops an NPV figure/table.
Clearly articulates the cost of the strategy (-cf0).
Clearly articulates the subsequent Pro-Forma cash flows (cf) for the NPV analysis.
Thoroughly analyzes the NPV.
Includes and analyzes the EPS/EBIT figure/table.
Chipotle 2017-2019 financials
https://finance.yahoo.com/quote/CMG/financials?p=CMG