Yahoo! Inc. released details of a plan Tuesday that aims to nearly double operating cash flow over three years to $3.7 billion and projects $8.8 billion in revenue in 2010.

Yahoo! said it first presented the plan to its board in December, well before Microsoft Corp. made public an unsolicited takeover offer for the company.

Microsoft had offered to pay $44.6 billion, or about $31 per share, for Yahoo in a hostile takeover attempt announced on Jan. 31.

But the value of Microsoft's cash-and-stock offer has since declined to less than $42 billion, or roughly $29 per share, as the value of Microsoft's shares have dropped.

In its presentation, Yahoo! pointed to its business in Asia, its No. 2 position in Internet search and cost savings to emphasize why it maintains that the offer is too low.

"Yahoo! is positioned for accelerated financial growth--we have a powerful consumer brand, a huge global audience and a highly profitable operating model," Yahoo! chief executive Jerry Yang said in a statement.

But Microsoft insists that a combination with Yahoo! enables the two companies to better compete with search engine powerhouse Google Inc. Microsoft also argues a merger would help the combined companies cut costs by at least $1 billion.

Earlier this month, Microsoft had also reportedly enlisted the help of Bear Stearns Cos.' Alan Schwartz to advise it on the deal. While Microsoft already had a cadre of veteran bankers working on the deal, Schwartz's reputation as an adviser to media companies was seen as a plus--until this week, at least.

But Yahoo! said Tuesday that its plan supports its view that Microsoft's offer substantially undervalues its operations.

"This is a scale business and our scale is a tremendous strategic asset," Roy Bostock, Yahoo!'s chairman, said in a statement. "We are pleased to share with the market more details about our business and our expectations for Yahoo!'s financial performance, which provided context for our board's unanimous rejection of Microsoft's unsolicited proposal," he added.

Bostock said the board and management are working closely to "ensure that any strategic path we pursue capitalizes on that uniqueness and value in a way that maximizes the benefit to our stockholders."

Separately, Sunnyvale, Calif-based Yahoo! also reaffirmed its outlook for the first quarter and full year. The company continues to expect first-quarter revenue between $1.28 billion and $1.38 billion and for full-year revenue of $5.35 billion to $5.95 billion.

Yahoo! shares fell more than 3% to $25.85 in early trading on Tuesday. -- Donna Block