Submitted by‚ Anil Anjum Nisar Ahmed Murtaza Naqvi Omer Akif Arundel Partners: The Sequel Project If the first movie was a success they would exercise their right and make the sequel or sell it to the highest bidder. Otherwise they would just write it off their investment schedule. The chances of making a profitable business would largely depend on a good estimate of the rights present value at the contract date. To less would not tempt the studios (inquiries indicated not less than USD 2 million
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Criteria 1 - Armin’ situation & Armin’s team How does Armin perceive his situation in the company as a result of the alternative chosen? More concretely‚ are his reputation and ability to generate new business going to be affected by the decision he makes? Will his team keep an equally proactive spirit? Criteria 2 - Relationship with the direct boss and other Bosses (CMB) How will the relationship with Hartmut Schur (Armin’s direct boss) be affected by each alternative? What is the impact
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Arundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights‚ the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out the value
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realisation of the need for a new supplier; determination and formulation of decision criteria; pre-qualification (initial screening and drawing up a shortlist of potential suppliers from a large list); final supplier selection; and the monitoring of the suppliers selected (i.e. continuous evaluation and assessment). The supplier selection can be seen as decision making under uncertainty and can be illustrated by a decision tree diagram as follows:- | | | | | | a | Satisfactory | |
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Edelman Award Paper Revenue Management Saves National Car Rental By M.K Geraghty and Ernest Johnson In the January/February 1997 issue of INTERFACES magazine‚ M.K. Geraghty and Ernest Johnson were presented as finalists of the Franz A. Edelman award for their presentation on a state-of-the-art Revenue Management System that would turn a huge money losing rental car company‚ National Rental Car‚ into a profitable business within two years. In 1993‚ General Motors took a $744 million dollar
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Evaluation of Financial Information Syllabus (Subject to minor changes) Spring 2012 Prof. Anna Scherbina UC Davis Graduate School of Management Office: 3212 Gallagher Hall Course Focus Tel: 530.754.8076 e-mail: ascherbina@ucdavis.edu We will learn how to use financial information to value firms‚ projects‚ and securities in a wide variety of industries‚ including real estate. The course will be based entirely on the Harvard Business School case studies and will focus on learning techniques
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Arundel Partners Case Study Arundel Partners 10201 W Pico Boulevard Los Angeles‚ CA 90064 Arundel Senior Management: After a thorough investigation into the venture you are considering‚ we have the following data and analysis for your review. In order for you to make a more informed decision‚ we have also provided recommendations for this endeavor based off our findings. Throughout the entirety of
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BF322: Advanced Corporate Finance Case Study – Arundel Partners: The Sequel Project Group Members: Chen Yanheng Loon Shu Juan Melissa Ong Joseline Tan Hui Kiow Fundamental Analysis Arundel Partners is an investment group‚ set up to purchase sequel rights associated with films produced by one or more major U.S. major studios. By owning such rights‚ Arundel will be able to wait and see if the movie was successful‚ before deciding whether to exercise its right and produce a second
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Arundel Partners Edgefield Consulting 09/25/98 As a new business opportunity arises‚ so do some of the uncertainties that come along with it. Our company has been brought in to evaluate some of these uncertainties that come along when unchartered territory is explored. Arundel Partners has an idea that has great potential‚ but there are a few problems that must be addressed in order for the idea to become reality. First‚ we will look at potential limited partners. More than likely general
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use as much space as you need for your response. 1.2 Explain how modeling is used in decision analysis. What is meant by the term "requisite decision model"? Ans: Modeling is used in decision analysis in several ways. Models facilitate gaining insights of a decision problem that may not be apparent or obvious on the surface. For example‚ influence diagrams and decision trees are used to represent the decision problem. Hierarchical and network models are used to understand the relationships among
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