Brooks Competition JC Penney
16
Fallout from the Hacking Scandal http://www.motherjones.com/mixed-media/2014/06/north- korea-not-respond-yet-seth-rogen-james-franco- interview-movie-trailer http://commons.wikimedia.org/wiki/File:Sony_pictures_logo.png Team 4 Ying Chyi Gooi, Aaron Cheong, Yee Xiong Hing
description
Brooks Competition JC Penney. Team #4: Xin Zhang Keat Ian Yeoh Jenn Yang Lee. Recommendations. Purchase JC Penney stocks. Capital Budgeting. Assumptions. Ratios Depreciation Inflation rate Sales growth rate. Capital Budgeting. Operating cash flow. Net working capital - PowerPoint PPT Presentation
Transcript of Brooks Competition JC Penney
Fallout from the
Hacking Scandal
http://www.motherjones.com/mixed-media/2014/06/north-korea-not-respond-yet-seth-rogen-james-franco-interview-movie-trailer
http://commons.wikimedia.org/wiki/File:Sony_pictures_logo.pngTeam 4Ying Chyi Gooi, Aaron Cheong, Yee Xiong
Hing
Agenda
Recommendation Capital Budgeting Revised Forecast Post-crisis Evaluation Questions for
Consideration Conclusion
Recommendation
http://www.impawards.com/2014/interview_ver3_xxlg.html
Recommendation
Charge $7/Pay-per-view
Alternative: $10/Pay-per-view
Capital Budgeting
Capital Budgeting (Task #1 analysis)
Scenario Summary Most Likely Best Case Worst Case
Changing Cells:
Theatrical (in units) 12,000,000 15,000,000 10,000,000
Pay-per-view (in units) 10,000,000 12,000,000 80,000,000
Result Cells:
NPV $8,047,068 $18,046,097 ($7,341,604)
IRR 17.40% 36.95% -10.71%
Revised Forecast
Revised Forecast(Task #2 analysis)
Scenario Summary Most Likely Best Case Worst Case
Changing Cells:
Theatrical (in units) 10,000,000 12,000,000 8,000,000
Pay-per-view (in units) 11,000,000 12,000,000 1,000,000
Result Cells:
NPV ($722,340) $5,743,036 ($7,128,326)
IRR 1.48% 14.21% -11.15%
Post-crisis Evaluation
http://venturebeat.com/2014/12/26/in-new-tragic-twist-critics-say-the-interview-is-actually-a-pretty-terrible-movie/
Post-crisis Evaluation(Task #3)
Scenario Summary Most Likely Best Case Worst Case
Changing Cells:
Theatrical (in units) 8,000,000 10,000,000 6,000,000
Pay-per-view (in units) 1,000,000 1,200,000 800,000
Result Cells:
NPV ($6,923,444) ($689,474) ($13,157,414)
IRR -10.13% 1.54% -20.81%
Post-crisis Evaluation(Task #3)
Scenario Summary
Most Likely(Solution 1)
Worst Case(Solution 1)
Worst Case(Solution 2)
Changing Cells:
Price $7 $7 $10
Result Cells:
NPV ($5,697,252) ($12,176,461) ($12,544,318)
IRR -7.85% -19.12% -17.09%
Value saved : $1,226,192 $980,953 $613,096
Questions for Consideration
http://www.impawards.com/2014/interview_ver3_xxlg.html
Questions for Consideration Movie-goers don’t decide
based on company
Exchange rate (USD/Y) influences Sony’s profitability
Government perceives threat
Conclusion
http://www.impawards.com/2014/interview_ver3_xxlg.html
Conclusion
Charge $7/Pay-per-view
Alternative: $10/Pay-per-view
