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Why is capital budgeting part of a company's long-term strategic planning process? What are the pros and cons of these methods:
The following issues are of a particular concern to the CFO: -The company's working capital position
Meeting with the financial analyst, discuss three key valuation methodologies that companies use-- NPV, IRR, and MIRR.
What qualitative elements should you consider as you begin to formulate your decision on The UPS Store franchise opportunity?
Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment?
We use WACC as discount rate to find the present value of future cash flows emerging from a project, so it is of immense importance to calculate correct WACC
Analyze the use of capital budgeting techniques in strategic financial management.
The entire SLP component of the course will involve different aspects of the capital budgeting analysis.
Distinguish between capital budgets and operating budgets &List the warning signs for a municipality that is in financial trouble.
Determine the net present value of the proposed project and whether it should be accepted under each of the following assumptions.
Calculate the following: Expected cash flows given forecasted profit
You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of 20,000 at the end of each year for 6 years.
Using the case "Celtel International B.V." (Harvard Business School case, no. 9-805-061) address the following:
- Discounting. Find a related article at Bloomberg. Remember to focus upon your selected concept in your analysis.
You have borrowed $6,000 from the ABC Bank for a period of 4 years. The annual interest rate is 12%. Can you determine your annual repayment of the loan?
Explain how both small and large organizations can benefit from budgeting.
The Payback method is widely used in capital budgeting because it is simple and does a good job of determining the correct accept/reject decision.
a. What is the net present value of investment A? Investment B? Investment C? b. What is the internal rate on investment A? Investment B? Investment C?
What are the alternatives to discounted cash flows? Evaluate the advantages and disadvantages of each alternative.
What is the Discounted Profitability Index for Project B? What is the Cross-Over Rate Between the two Projects?
Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in 2012.
How can managers better improve their ability to eliminate biases in their forecasting.
Vu Trading Company is evaluating a project that has the estimated cash flows given here. The cost of capital is 14%. 1. What is the project’s NPV?
You work for the Sing Oil Company, which is considering a new project whose data are shown below. What is the project's operating cash flow for Year 1?
Jet, Inc., has net sales of $712,478 and accounts receivables of $167,435. What are the firm's accounts receivables turnover and days' sales outstanding?