AMAZON.COM Beta and NPV
Examine the recent announcements, press releases and and any other reports and pick three projects that AMAZON.COM,INC might be evaluating. Briefly identify these three projects, what division of the company would be proposing them, and how much they might cost. It is okay to make them up, but justify them based on the company’s stated purpose, mission, plans, etc. Be creative here but identify the sources you used. Make sure they are not all of the same riskiness. Example #1: Adtalem’s competitor Grand Canyon Education is building bricks and mortar campuses. ATGE is considering buying an abandoned Walmart complex and turning it into a residential college campus aimed at casino workers and with student housing for families. The estimated cost for the purchase and renovation of the property is $300 million dollars. This is considered not risky as there is a shortage of courses in the community college in Las Vegas where they plan to build. There are bond guarantees available for the investment, from local government, making their cost of borrowing only 3%. (Yes, I made these things up, yes they are quite feasible based on the company and its competitors. References to articles on Grand Canyon and ATGE’s mission statement and the Vegas project bonds guarantees would be included here.) See, that is not so bad, is it?