Imagine that you are a financial advisor for Netflix, Inc., and Amazon.com, Inc. You are tasked with creating a comprehensive forecast of the revenue, costs, and cash flows of these companies, answering key questions that may influence their future decisions.

Use the Netflix and Amazon Data Spreadsheet to generate a pro forma forecast and consider what this indicates about the future for these two companies.

In a 2-page paper, provide the following:

• A forecast of Netflix, Inc., and Amazon.com, Inc.’s revenue, costs, and estimated cash flows into the next five years.
• The appropriate discount rate for Netflix, Inc., and Amazon.com, Inc.’s forecasted cash flows.
• An appropriate risk-adjusted rate of return for use in evaluating an investment in Netflix, Inc., and Amazon.com, Inc.
• A determination of the estimated fair market value of 100% of Netflix, Inc., and Amazon.com, Inc.’s equity.