17.5% Discount Rate Assumptions (a) Risk-free Rate 6.0% 10-year US Treasury yield (p. 8) Asset Beta 0.84 Risk Premium 6.0% Discount Rate 11.0% in millions General Assumptions as of 2000 Inflation Rate 2.0% Tax Rate 38.0% Results from the Model NPV = After-tax IRR = Pre-tax IRR = # planes sold by 2019 Capacity Constraint Violated? Required Investment as of 2000 ($millions) Research & Development $11‚000 Capital Expenditures $1‚000 Working Capital $1‚000 Required Investment (Ex. 10) Research
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Warren E. Buffett‚ 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically‚ what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities‚ what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid for
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com/Singapore/EDC100420-0000100/SIA-will-not-fly-if-it-is-not-safe [Accessed 6 May 2010]. 28 Quantas‚ 2009. Annual Report. [Online] Available at: http://annualreport.qantas.com.au/assets/pdfs/QantasFinancialReport200907Notes2-10.pdf [Accessed 25 July 2010]. Qantas‚ 2010. Qantas to Receive First Boeing 787 In 2012. [Online] Qantas. Available at: http://www.qantas.com.au/regions/dyn/au/publicaffairs/details?ArticleID=2010/jul10/4096 [Accessed 25 July 2010]. Qantas‚ 2010. Qantas Launches New Inflight Entertainment Program . Available at: http://www
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weekly flights from Dubai from 80 to 39 in 1984. In response to this‚ Sheikh Mohamed bin Rashid Al Maktoum decided to create a new airline and thus began the era of Emirates airlines. Emirates was established in 1985 with two Boeing 727s from the royal fleet and an Airbus and a Boeing leased from Pakistan International Airways(PIA). It was initially the flag carrier of UAE. It carried 86‚000 passengers in its first year of operation. Emirates is the classic example of a true hub and spokes system. It
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alternate products they offer at their online store as well as affiliates. Barnes & Noble has no such revenue stream. This means their cash cycle is shorter compared to a Amazon.com‚ who has become a major player in the Ebook market. Q2. How does Boeing achieve a cash cycle of negative 100 days? Negative Cash Cycles-The lower the cash cycle the better it looks for a company’s finances‚ so a negative cash cycle is very desirable. A negative cash cycle is one in which you don’t pay for your inventory
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owned by The Emirates Group that is 100% owned by the government. At present‚ Emirates operates services to 78 destinations in the Middle East‚ Far East‚ Europe‚ Africa‚ Indian subcontinent‚ Asia-Pacific and North America. Its fleet consists of 78 Boeing and Airbus models aircrafts that are among the newest in the air (Maier‚ 2005). 1. Is the industry attractive? Industry dynamics and competition: 5 forces model Threats of new entrants Economies of scale Larger airlines enjoy increased economies
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Zheng fan Daniel boudreau 4/1/2014 ESN95 Concorde supersonic aircraft: fail or success? Concorde aircraft‚ the first supersonic commercial aircraft in human history‚ is retired in 2003. United Kingdom and France associated Concorde airplane designed‚ only British Airways and Air France owned it in the world. Concorde reflected the high technology‚ adventurer and human intelligence. When it first flight in 1960s‚ millions on black and white television sets watched Concorde. As a high speed airplane
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Concurrent engineering is a new and flexible way of developing products that allows the company to gather information from all the parties including the customers and dealers to concurrently design‚ build and market as one process. In concurrent engineering product development‚ teams of manufacturing and design personnel are not separated but work together on their tasks simultaneously. The teams should also include employees from marketing‚ quality‚ packaging‚ and maintenance that will need to communicate
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1‚300‚000 4 $ 950‚000 1. What is the project’s IRR? (10 pts) = 22.38% 2. What is the project’s NPV? (15 pts) = $450‚867.00 Computation of Net Present Value Year Cash Flow Present Factor @ 15% Present Value 1 $ 1‚100‚000 0.8696 $ 956‚522. 2 $ 1‚450‚000 0.7561 $1‚096‚408. 3 $ 1‚300‚000 0.6575 $854‚771. 4 $ 950‚000 0.5718 $543‚166. Total = $3‚450‚867. Less: Initial cost = $(3‚000‚000) NPV = $450‚867.00 Formula: Cash Flow x Present Factor @ 15% = Present Value 1100000x 0.869565217391304=
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Which of the following would not be an operations function in a fast-food restaurant? A) advertising and promotion The Dulac Box plant produces 500 cypress packing boxes in two 8-hour shifts. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately D) 40.6 boxes/hr. 3.One reason for global operations is to gain improvements in the supply chain. A) True 4.Productivity is the total value of all inputs to the transformation process divided by the
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