EBAY NSP/EBIT/NVP Analysis USD $ in millions 12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Net income (loss) -1,016 7,266 1,725 Less: Loss from discontinued operations, net of income taxes -4 -19 -222 Add: Income tax expense 3,288 -3,634 459 Earnings before tax (EBT) 2,276 3,651 2,406 Add: Interest expense 292 225 144 Earnings before interest and tax (EBIT) 2,568 3,876 2,550 Add: Depreciation and amortization 676 682 687 Earnings before interest, tax, depreciation and amortization (EBITDA) 3,244 4,558 3,237 Input Data Need for Capital 1,000 EBIT Range 2568-3876 Estimated EBIT range Interest Rate 2.90% recent interest rate Tax Rate 35.54% recent tax rate Stock Price $38.03 Stock price Shares Outstanding 1,087,042,601 Shares outstanding Input Data 100% Debt Financing 100% Common Stock 50% Debt-50% stock EBIT 2568 3876 2568 3867 2568 3876 Interest 74 74 37 37 EBT 2494 3802 2568 3876 2531 3839 Taxes 913 1351 912 1378 890 1364 EAT 1608 2451 1656 2489 1641 2475 Shares outstanding 1087 1087 1090 1090 1090 1090 EPS 1.479 2.254 1.519 2.283 1.504 2.27 NPV Discounted Rate 10% Initial Investment 1,000 Year 1 Operating Year 1 Investing Year 1 Financing NPV Equals 1461 .