INTRODUCTION TO CAPITAL BUDGETING Overview 159 7.1 The NPV Rule for Judging Investments and Projects 159 7.2 The IRR Rule for Judging Investments 161 7.3 NPV or IRR‚ Which to Use? 162 7.4 The “Yes–No” Criterion: When Do IRR and NPV Give the Same Answer? 163 7.5 Do NPV and IRR Produce the Same Project Rankings? 164 7.6 Capital Budgeting Principle: Ignore Sunk Costs and Consider Only Marginal Cash Flows 168 7.7 Capital Budgeting Principle: Don’t Forget the Effects of Taxes—Sally and Dave’s
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FIN3101 Corporate Finance Practice Questions Topic: Capital Budgeting 1. Marsh Motors has to choose one of two new machines. Machine 1 costs $180‚000‚ has a 3 year life and EBIT of $108‚750 per year. Machine 2 costs $360‚000‚ has a life of 6 years and EBIT of $122‚875 per year. Assume straight line depreciation over the life of the machine. Marsh is a levered firm with a debt equity ratio of 0.40. The beta of equity is 1.125 while the beta of debt is 0.25. The market risk premium is 8 percent
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Faculty of Economic & Business كلية االقتصاد واإلدارة Syllabus Strategic Management (BUS 420) Muhammad Zafar Yaqub‚ Ph.D.‚ MBA‚ MA (Eco.)‚ MA (Pol. Sc.) Room No. 479‚ 4th Floor Department of Business Administration Voice Direct: +966 2 70470 Mobil: +966 565 466737 Email: zafar.yaqub@yahoo.com Skype ID : mzyaqub COURSE DESCRIPTION With the advent of the (global) marketplace becoming more and more dynamic and tough due to an ever-intensifying competition‚ a key determinant/antecedent of the firms’
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Understanding corporate value: managing and reporting intellectual capital Intellectual capital Contents 1 Introduction 4 2 Definitions of intellectual capital 6 2.1 2.2 Classifications of intellectual capital Why is intellectual capital so difficult to measure? 3 IC measurement 8 Generic models 3.1 Balanced scorecard 3.2 Performance prism 3.3 Knowledge assets map approach Individual company models 3.4 The Skandia navigator 3.5 Ericsson’s cockpit communicator
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Travelling by air has become cheaper with the number of budget airlines and the many deals that even the major carriers put out from time to time. It makes it easy to travel on a budget. However there are some costs attached to travelling that seem to be unavoidable like airport parking. Melbourne airport parking is ranked as the second most expensive in Australia. The trend seems to be that the bigger city the higher the airport parking fees are likely to be. Airports collect a lot of revenue from
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Capital Budgeting Case Theresa Cruz‚ Jesika Watson‚ Sophina Lane QRB/501 March 30‚ 2015 Melinda Gregg Capital Budgeting Case Analyzing the Results In the two capital budgeting cases corporations (A and B) have different revenues values and expenses as well as variable depreciation expenses‚ tax rates and discount rates. The members of our team had to compute both corporate cases NVP‚ IRR‚ PI‚ Payback Period‚ DPP‚ and project a 5-year income statement and cash flow in a Microsoft Excel spreadsheet
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2.5 Working Capital This section includes: Definition and classification of working capital Determinants of Working Capital Measurements of Working Capital Working Capital Financing Management of Working Capital Inventory management Cash Management Receivables Management INTRODUCTION : The term working capital is commonly used for the capital required for day-to-day working in a business concern‚ such as for purchasing raw material‚ for meeting day-to-day expenditure on salaries‚ wages‚ rents rates
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INDEPENDENT STUDY – I “Study of time and cost of labour productivity for a construction project” Submitted by: Eshani Kothari Code: PT100513 Guided by: Prof. P Akalkotkar Chairman‚ M.Tech (CEM) CEPT University M.Tech. programme in construction Engineering and Management CEPT University Ahmedabad- 380009 1 INDEX TABLE OF CONTENTS Sr no Chapter I 1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6 1.7 1.8 Chapter II 2.1 2.2 2.2.1 2.2.2 2.3 Chapter III 3.1 3.2 Chapter
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Not Quite the Same‚ but Similar In the novel The House on Mango Street‚ Sandra Cisneros tells about Esperanza and Nenny how they are as sisters. In “Laughter” Esperanza quotes that she and Nenny do not look like sisters as much as her friends Rachel and Lucy‚ “Nenny and I don’t look like sisters…not right away. Not the way you can tell with Rachel and Lucy…” (pg.17). I can relate to Esperanza and Nenny because just like them‚ my sister and I do not appear like sisters either and have things in
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The concept of man and woman reiterates through the notion of how Same-Sex marriage could affect families and children that are involved within Same-Sex couple relationships. Firstly‚ in relation to the idea of forming a family with homosexual parents becomes unnatural as Same-Sex parenting represents an attempt to disrupt that “natural” order of forming a nuclear family. Marriage has a place in the law because a relationship between a man and a woman is the kind of relationship that may produce
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