Finance: Managing for Corporate Value Creation‚ 4/e IV. Capital Budgeting and Resource Allocation 17. The Investment Detective © The McGraw−Hill Companies‚ 2003 CASE 17 The Investment Detective The essence of capital budgeting and resource allocation is a search for good investments in which to place the firm’s capital. The process can be simple when viewed in purely mechanical terms‚ but a number of subtle issues can obscure the best investment choices. The capital-budgeting analyst
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Trinity Project came from mostly The Manhattan Project‚ and Atomic bombs. The idea of Manhattan Project was to create enough Atomic bombs to threaten the Axis Powers‚ so much that they would surrender. During this time‚ many new weapons were being made‚ for war‚ with uranium and plutonium. The Trinity Project was made to test the bombs. The trinity project was vital to end World War Two. In May 1944 the Trinity test site was originally in Jornada Del Muerto‚ but in September they decided to move
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You are a project manager for a medium-sized manufacturer of motorcycle cruisers. The engines in motorcycle cruisers‚ like the ones you manufacture‚ are usually categorized by size rather than the number of cylinders. In the past‚ your company has successfully manufactured and marketed the best-selling of these fuel-efficient cruisers that occupy the middleweight class. The rather nebulous middleweight class comprises motorcycles broadly ranging in engine size from 500 cubic centimeters‚ or cc‚
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“The Net Is a Waste of Time” by William Gibson‚ he talks about how he is an “avid browser of the World Wide Web.” While people find this to be odd and his wife finds it positively perverse‚ Gibson thinks differently saying “I‚ however‚ scent big changes afoot‚ possibilities that were never quite as manifest in earlier incarnations of the Net” (Gibson 691). While some people think he is wasting his time with the web‚ he believes it will be the tool of the future. Even though the internet has greatly
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Successful CRM: Turning Customer Loyalty into Profitability By Bob Thompson CEO‚ CustomerThink Corporation Founder‚ CRMGuru.com [pic] October 2004 Compliments of: [pic] Copyright © 2004 RightNow Technologies. All Rights Reserved. Executive Summary Customer relationship management (CRM) gained recognition in the mid-1990s‚ primarily driven by its perception as information technology (IT). However‚ not enough attention has been given to the fundamental drivers of CRM success:
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Net Promoter Scores By: Tamika Anthony Everest College | | Net Promoter Score The Net Promoter Score is calculated by taking the percentage of Promoter customers and subtract the percentage of Detractor customers. The following is an example of a net promoter score calculation. 21 customers responded to their satisfaction of Product X on a 0-to-10 point scale. The results were 9‚4‚7‚4‚2‚0‚10‚9‚3‚6‚8‚7‚3‚9‚8‚8‚7‚9‚10‚4‚ and 2. There are
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Analysis in Investment Appraisal by Savvakis C. Savvides Published in “Project Appraisal”‚ Volume 9 Number 1‚ pages 3-18‚ March 1994 © Beech Tree Publishing 1994 Reprinted with permission ABSTRACT* This paper was prepared for the purpose of presenting the methodology and uses of the Monte Carlo simulation technique as applied in the evaluation of investment projects to analyse and assess risk. The first part of the paper highlights the importance of risk analysis in investment appraisal
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iExaminers’ commentaries 2011 Examiners’ commentaries 2011 23 Investment management Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2010–11. The format and structure of the examination may change in future years‚ and any such changes will be publicised on the virtual learning environment (VLE). Specific comments on questions – Zone A Candidates should answer FOUR of the following EIGHT questions. All questions carry equal
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margin of 50%. The next day Qualitycorp’s price drops to $25 per share. What is your actual margin? A) 50% B) 40% C) 33% D) 60% E) 25% Answer: B Difficulty: Moderate Rationale: AM = [300 ($25) - .5 (300) ($30)] / [300 ($25)] = .40 30. Assume that you purchased 200 shares of Super Performing mutual fund at a net asset value of $21 per share. During the year you received dividend income distributions
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On January 4‚ 2010‚ Harley‚ Inc. acquired 40% of the outstanding common stock of Bike Co. for $2‚400‚000. This investment gave Harley the ability to exercise significant influence over Bike. Bike’s assets on that date were recorded at $10‚500‚000 with liabilities of $4‚500‚000. There were no other differences between book and fair values. During 2010‚ Bike reported net income of $500‚000. For 2011‚ Bike reported net income of $800‚000. Dividends of $300‚000 were paid in each of these two years.
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