DOMINO’S PIZZA

6. NPV Analysis. Create an Excel spreadsheet and build the projected income statement for 5 years. The base components for the initial spreadsheet can be found using the attached table. Assuming a WACC of 12%, calculate the project’s NPV, IRR, and MIRR. Comment on your findings. At this stage, should you open a franchise? Why or why not?
7. NPV Profile: Recalculate the project’s NPV under various WACC scenarios. Start WACC at 0% and increase incrementally by 5% increments). Compare this to the international franchise information listed in the grid. At this stage, should you open a franchise? Why or why not?
8. ANALYST ASSESSMENT:
a. Value Line: Refer to the most recent Value Line Report. Prepare a table of the restaurant’s key rankings (upper left-hand corner and lower right-hand corner of the Value Line sheet). Read the report and present an assessment of your firm’s financial health.
b. Guru Focus: Using Guru Focus, what is the intrinsic value placed upon the firm? What do current “gurus” have to say about the company?
9. CONCLUSION: Would you open a franchise once considering the benefits/costs of the franchise and the overall health of the company? Justify conclusions by pointing towards quantitative and qualitative reasons presented in the paper.
11. APPENDIX: Place any additional information in an Appendix.
12. Label all Table numbers sequentially and make reference to them in the paper.

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