9-1 Final Project Submission: Financial Analysis Report
SNHU
FINAL PROJECT | 1
PepsiCo . Inc
A) As per the guideline provided the question, quite clear that the proposed buyer will in it is
get a discount rate of cover the uncertainty regarding the cash flows for future years. 9% to
The current cash flow needs be discounted per 9% present value. So, the proposed buyer to as
will be willing to buy the company at $ 629190 million which is discounted value of cash flow
of 2021 @ 9%.
B) Impact of cash flow changes
⚫ In case the factor of 5% considered, there been a steady cash flow for the years PV is has
2021, 2020 and 2019 respectively. There has been some sort of stagnant position in the
cash flow for the last two years. It is a sign of increasing risk, which doesn’t augur well for
the company.
⚫ In case cash flow decreases by 10% year, there would be a substanti decline in each al in
present value of cash flows, in total there would be a decline of $3078627.8million, which
is to to quite a substantive amount of decrease and there needs be a proper analysis as
what lead such a decrease cash flows and a deliberated proper plan should be ready to in
to counter such situation.
⚫ In a case of increase cash flows and increase of 7%, leads a scenario 3% in PV to it to
where actual present value of cash flow change much. In fact relation Year doesn’t in to
