Salesforce Inc Income Statement and Net Present Value analysis

Salesforce Inc Income Statement and Net Present Value analysis

Group Case Study 1 Instructions

Complete a case study of Salesforce in the case section of the text https://bookshelf.vitalsource.com/books/9781307149…

A formal, in-depth case study analysis requires you to utilize the entire strategic management process. Assume your group is a consulting team asked by the Salesforce to analyze its external/internal environment and make strategic recommendations. You must include exhibits to support your analysis and recommendations.

Attached the answer to 11. Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years and analysis each year must have 2 columns: 1 with your strategy and 1 without your strategy. Include Pro-Forma ratios for the first year out with deltas contrasting from the most current year’s ratios.

Need to complete 12,13 and 14

• 12. 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 cf_n 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).
• 13. Specific recommended strategy and long term objectives
  Explain why you chose the strategy, and discuss how much the strategy will cost to implement and how much new revenue your strategy will create. Include your action timetable agenda for accomplishing your strategy.
• 14.Proposed new business model