Professor Hamza Abdurezak Harvard University Yang Zhong 1> A. Payback‚ NPV‚ IRR‚ Should purchase or not? Payback: $35‚000/5000=7 year NPV: =Co+ C1…..n/(1+i)^1….n Co=-3‚5000 CF1-CF15= 5‚000; I= 12 Computing result is $-945.67 IRR: 11.49% NPV is negative and IRR is lower 12% so reject the proposal. B. NPV: =Co+ C1…..n/(1+i)^1….n NPV= -35000+(4500/.12) =2500 NPV is positive so should purchase the machine
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Circle and Write the most correct answer: _____ 1. Who are the beneficiaries of hotel competition? a. The economists b. The consumers c. World Trade Organization d. The owners 2. Amtrak‚ VIA Rail and KTX are all examples of what kind of market: _____ a. monopoly b. oligopoly c. perfect competition 3. Cabotage Laws _____ a. Control taxes in hotels b. Protect the US transportation market c. Protect consumers from high exchange rate commissions 4. SkyTeam‚ Star Alliance‚ AAdvantage
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prove to be spectacular or fatal. Given the huge cost outlays‚ it is imperative to assess the present worth of the investment before deciding to go ahead with the 777 project. The basic intuition is to accept the project if the IRR is more than WACC or reject it if IRR is less than WACC. The defense division of Boeing was relatively more stable and was thriving during gulf war whereas commercial aircraft business became volatile. Therefore β for commercial division is more appropriate for calculating
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large flowchart to assess and assign project management. NPV‚ IRR‚ Profitability‚ & Payback Method Financial ratios have strengths and weaknesses‚ and one should be aware of these ratios to determine which is best in calculating the company’s financial health as well as the viability of a project. A company’s financial position can be assessed using NPV‚ IRR‚ profitability‚ and payback method; each important in itself to calculating the company’s financial
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{draw:frame} University of Derby/Buxton Hospitality Management MA Hotel Renovation A Tool For Repositioning In the Hotel Industry Submission Date: 7th May 2009 Business Analysis and Decision Making Student: Nana Yaa Addo Module Leader: Norman Dindsdale Introduction The hospitality industry has grown phenomenally since 2001 and has been driven by both leisure and business demand (kloppers 2005). The needs of the consumer have now become dynamic rather than static. Consumers
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AF 3313 2011-12 Sem 2 Written Assignment Name: Shi Yu ID: 10821504d Tutor: Ho Ming Lawrence FUNG Q1: Definition of efficient market: The efficient market is defined as a market where competition among investors should work to eliminate all positive-NPV trading opportunities or‚ equivalently‚ that securities with equivalent risk should have the same expected return based on their future cash flows‚ given all information that is available to investors. Definition of arbitrage: It is
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PAYBACK PERIOD‚ AND RETURN ON INVESTMENT): 15 NPV= -35‚000 + ∑ 5‚000 / (1 + 12%) ^ 15 i=1 = $947 The IRR 15 0= -35‚000 + ∑ 5‚000 / (1 + IRR) ^ 15 i=1 = 11.49% From the above calculation it can be projected that the net present value is negative and the IRR is also lover than the cost of capital which is 12% (B) Present value = annual cash flow/ cost of capital = 4500/0.12 = 37500 The net present
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Diamond Chemicals: Merseyside and Rotterdam Projects [pic] Group 5 Edi Suryanto Gressiadi Muslim M Fahmiansyah Rudianto Nugroho Wibowo Kristianto MAGISTER OF BUSINESS ADMINISTRATION FACULTY OF ECONOMICS AND BUSINESS GADJAH MADA UNIVERSITY 2011 Diamond Chemicals: Merseyside and Rotterdam Projects Diamond Chemicals is a leading producer of polypropylene‚ the polymer used in a variety of products (ranging from medical products to packaging film‚ carpet fibers
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Valuing Developable Land at Canary Wharf In valuing the developable land at Canary Wharf‚ there are several factors to take into account. Namely‚ it is crucial to decide on an appropriate rate at which to discount the projected cash flows for the property. The developable properties of Canary Wharf come with considerable risk. For example‚ the London office market downturn‚ as well as significant market hits for the large financial services tenants of Canary Wharf‚ presents serious
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debt to assets ratio (conservative based on DSCR of 2.5 and the capital structure put in place when the project was a greenfield) This results in an enterprise value in the range of HK$8.4 – 10.7 billion (including ITS) This range would imply levered IRRs to existing shareholders in the lower end of their acceptable
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