Based upon the after-tax return on capital, would you accept or reject Brookfield Renewable Partners as an equity in your stock portfolio?

FYI: This assignment is both writing and excel calculations.

Please find instructions below

(Case Study Rubric: Brookfield Renewable Case
Prepared by: Dr. Philip L. Fazio, CFP®, CIMA®)

1- Case Assignment Background and Summary Overview
Case Analysis:
2. Accounting Return Analysis:
• Estimate the operating income over the next 10 years.
• Estimate the after-tax return on capital for the investment over the 10-year period
• Based upon the after-tax return on capital, would you accept or reject Brookfield Renewable Partners as an equity in your stock portfolio?
Commentary in writing
3. Cash Flow Analysis
• Estimate the after-tax incremental cash flows from the investment in Brookfield Renewable Partners over the next 10 years.
• If the investment is terminated at the end of the 10th year, and both working capital and investment in other assets can be sold for book value at the end of that year, estimate the net present value of this organization. Develop a net present value profile for Brookfield Renewable Partners.
• If the investment in Brookfield Renewable Partners is expected to have a life much longer than 10 years in your portfolio, estimate the enterprise value, making reasonable assumptions about investments needed and cash flows.
Commentary in writing
4. Business Model
One of the key drivers of a renewable energy-based model are the assumptions you make about current trends and regulatory requirements.
• What are you assuming in your base case and how sensitive is your conclusion to that assumption?
Upload excel spread sheets: (20 pts)
• Be sure to include:
• Company Income Statement, (5 pts)
• Balance Sheet, (5 pts)
• Statement of Cashflows, and (5 pts)
• your calculations.(5 pts)

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