Estimate cost of capital Evaluate projects using DCF analysis and determine whether projects would create value for shareholders Investigate ultimate source of value creation Construct: Proforma income statement Proforma balance sheet Proforma cash budget ( Not required )incorporating all investment, operating, financing, and dividend decisions Calculate ratios from proforma financial statements Evaluate implications of ratios Make financing decisions and adjustments to investment and operating decisions Redo proformas and ratios incorporating both investment and financing decisions Do risk analysis ( Not required ) MAKE RECOMMENDATIONS

Med Supply case :

Decisions to be made:

1. LPG new Product Advantages : Competitive Strategy,Disadvantage : Only if NPV