Accounting Return Analysis Nike ApparelIncome Statement (Million)2010 2011 2012 2013RevenueGross MarginGeneral and Administration Expense Advertising ExpenseDepreciationOperating IncomeInterestTaxAfter a! ReturnROI (Return on In"estment)2171455!"1#5$%"7$!%"&''%"$$$% (&55(#3$3)(2$13%)27&55744"1715%"$1!%"24'%$1 ("&24%&'$(1$)&%&&5'7'&5"177#%"$52%"1!2%24$7 ("!!4$%1&)$2#$)*%4'2'$44"1$4%"$$#%"15%417$(1#712#0$('10$02%)asedupona*ter taxreturnoncapital+ ,ecalculateROI (Returnonin"estment)$A*tercalculating t-e R.I ,e sa, t-at t-e R.I is increasing /o+ t-e pro0ect ma1 2e accepted on t-eincreasing R.I 2asis +as, -lo. Analysis

Nike Apparel +as, flo. Statement (MI//ION)2010 2011 2012 2013Income 2e*ore taxA001 DepreciationA001 Accounts 3a1a2le/2SS1 Account Receiva2les

Net +as, -lo."$$$%&''2112&41!"1'$55%13($'&$124'&214&'$"1K%22*$3324$71!244'7527&"1#75%32#$)3417$15&57'$#&&"2'1%&33$1Total 4et Income 5 &!51$Investment 5 25''6ess7 Depreciation 5"$$5%1#45Add7 Total net income 5&!51$2'4'42'Total 3ro0ect valueA*ter 4 1ears524#'Initial Investment 5 25''438 5 38 o* cas- *lo, 9 38 o* assets sold:ere+ none o* t-e assets -as 2een sold /o+ t-e 38 o* assets sold is '/.+ 438 5 4&&1 9 ' 5 4&&1Anot-er+438 5 38 o* cas- *lo, 9 38 o* &rd 1ear cas- *lo, 9 38 o* 2nd 1ear cas- *lo, 9 38 o* 1st 1ear;as- *lo,

5 4&&1 9 &25!&9 227&&91$45 112&2/o+ 2ased upon our Anal1sis ,e sa1 t-at+ t-e value o* t-e pro0ect a*ter 4t- 1ear is 24#' ,-ic- isless t-an t-e initial value o* t-e pro0ect 25''