Finances Problem
• Calculate the expected cash flows (using template provided and display results)
• Calculate the NPV
• Calculate the IRR
• Calculate the Payback
Evaluate:
• What are viable signings in economic terms?
• What is the signing that creates more value?
• Suppose we consider solely the risk factor, that is, EGARA FC descending to Second Division. Based on this single criterion, which player do you think should be signed?
• Make your recommendation on which player should be contracted, bearing in mind all the given information.
Scenario I:
• To what amount should the price of his signing be lowered for it to be viable?
• To what amount should the price of his signing be lowered for it to be more equal to the signing with the highest NPV?
• To what amount should the price of his signing be lowered for it to be equaled to the signing with the highest IRR?
Scenario II:
• To what amount should the salary be lowered in order to be the signing with the highest IRR?
Scenario III:
• To what amount should be paid within three years before the signing was feasible?
• Make a recommendation again about what signing must be done bearing in mind the information explained in the whole case.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.
Attachment:- Egara-Football-Club-Case.rar