RISKS LOCATION RISKFlooding due to typhoons may occur since they have decided to put up the hatchery near the coastal waters of Calauag Bay. Thus‚ overflowing of the fishponds may occur which would then lead to the fingerlings‚ juveniles‚ mature groupers to be carried by the floods. Furthermore‚ most aqua culture development centers are in the Visayas region. Thus‚ if unforeseen problem occurs in the growth of their fishes‚ they are far from the help of the experts in aqua culture. INPUT RISK
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THE UNIVERSITY OF WARWICK Examination: Summer 2009 FINANCIAL MANAGEMENT SPECIMEN ANSWERS Turn Over IB1140 Page 2 of 18 ---------------------------------------------------------------------------------------------------------------SECTION A Answer ALL of the questions in this section Each question is worth 2 marks ---------------------------------------------------------------------------------------------------------------1. Which of the following statements is most consistent with the
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Fourth Examination – Finance 3320 – Spring 2011 (Moore) R-Number: ____________________ Printed Name: ____________________ Ethical conduct is an important component of any profession. The Texas Tech University Code of Student Conduct is in force during this exam. Students providing or accepting unauthorized assistance will be assigned a score of zero (0) for this piece of assessment. Using unauthorized materials during the exam will result in the same penalty. Ours’ should be a self-monitoring
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DQ 1 How would you define working capital? What could happen if an organization neglected to manage its working capital? What working capital techniques would you recommend for your organization? Why? DQ 2 What is meant by capital planning? Why is IRR important to an organization? Why is NPV important to a project? How would you select from multiple projects presented to your organization? FIN 370 Week 3 Discussion Questions DQ 1‚ DQ 2 www.paperscholar.com DIRECT LINK TO THIS STUDY GUIDE:
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about the investment decision for producing SuperTread‚ a new tire of Goodweek Tires‚ Inc. The report focuses on the Net Present Value (NPV)‚ Payback period‚ Discounted payback period‚ Average Accounting Return (AAR)‚ Internal Rate of Return (IRR)‚ Profitability Index (PI) of this project. 1.1 Origin of the Report Major AHM Yeaseen Chowdhury‚ course instructor‚ Corporate Finance (F-601)‚ BUP‚ authorized this report verbally as part of the course curriculum. This is a group
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a. Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows‚ incremental profits‚ total free cash flows‚ or total profits? Caledonia should focus on cash flows‚ not accounting profits. Free cash flows are able to be reinvested‚ whereas accounting profits are shown when they are earned‚ not when the cash is actually received. The company should be interested in incremental after-tax cash flows
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NPV and IRR for the above two projects‚ assuming a 13% required rate of return. b. Discuss the ranking conflict. c. What decision should be made regarding these two projects? Answer: a. NPV of A = $211‚305 NPV of B = $401‚592.64 IRR of A = 16.33% IRR of B = 15.99% b. The later cash flow of B causes its lower IRR even though it has the higher NPV. c. B should be accepted because it is the mutually exclusive project with the highest positive NPV. Keywords: NPV‚ IRR AACSB:
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returns will be great only if everything remains like expected So I would like to recommend them to evaluate themselves at least yearly as things may change from year to year. 3. The WACC of 9.7% yields an NPV for the project of $0.8 million and an IRR of 11.1% Case 19 1. Worldwide Paper Company has an opportunity to take on a new project. With this project they would be considering an addition of a new on site Longwood wood yard. The yearly cash flows for this investment seem to be very good if
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several key financial indicators. Based on the results of the analysis a recommendation will be made as to whether or not the project should be accepted. The key results of the analysis are listed below: Financial Indicators NPV $7‚795‚695 IRR 12.822397% Payback Period 8.175779 Discounted Payback Period 14.275897 Profitability Index 1.388673 Discount Rate 8.891528% The results of the analysis lend favourably towards accepting the investment project. First it is important to note
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What is the Internal Rate of Return (IRR) of this project? The internal rate of return is the rate that would make the net present value of the firm’s project equal to zero. In other words‚ the IRR is the rate that would make the decision of investing or not in this project indifferent for the company. In order to calculate the IRR we started by computing the Free Cash Flows (FCF) for every single year. Once we got all the FCF‚ we calculated the IRR discounting them by the rate that would
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