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Complete a case study of Carmax (your instructor will assign the specific company for the case study at the beginning of Module/Week 3) in the case...

Complete a case study of Carmax (your instructor will assign the specific company for the case study at the beginning of Module/Week 3) in the case section of the text (e.g., Case Number 1).

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 Carmax to analyze its external/internal environment and make strategic recommendations. You must include exhibits to support your analysis and recommendations.

1.    Alternative business strategies (giving advantages and alternatives for each)

2.    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.

a.    Include Pro-Forma ratios for the first year out with deltas contrasting from the most current year's ratios.

3.    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 cfnfor 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).

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