Project Proposal for establishment Computer business and cyber net cafe | | | Dilla City Administration | | Jan‚ 2013 | | | Executive Summary With the support of UNDP‚ the Government of Ethiopia (GoE) has been implementing a project‚ entitled “Local Economic Development” (LED) in 20 localities of 5 Regions (Oromia‚ Amhara‚ SNNPR ‚ Tigray and (Hrari and Diredawa))
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making any calculations)? I would estimate the incremental cash flows over the economic life of the new machine‚ taking into consideration the after-tax salvage values of the old and new machine respectively. Changes in net working capital would be figured in as well. For the terminal year‚ we would assume that the net working capital is recovered and treat it as a cash inflow. 2. Explain the relevance of incremental cash flows‚ sunk costs‚ and incidental costs in the context of this case
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What are the relevant cash flows that General Foods should use in evaluating the Super Project? In particular‚ how should management deal with such issues as Test-market expenses? Overhead Expenses? Erosion of Jell-O contribution margin? Allocation of charges for the use of the excess agglomerator? The relevant cash flows that General Foods should use in evaluating the Super Project are considered Incremental cash flows and are “the changes in the firm’s cash flows that occur as a direct
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Problem Set 1 Solutions 1. Calculating Taxes. The Herrera Co. had $246‚000 in taxable income. Using the rates from Table 2.3 in the chapter calculate the company’s income taxes. What is the average tax rate? What is the marginal tax rate? The total amount of income tax is 0.15($50‚000 = $7‚500 + 0.25(($75‚000 – 50‚000) = $6‚250 + 0.34(($100‚000 – 75‚000) = $8‚500 + 0.39(($246‚000 – 100‚000) = $56‚940 Total = $79‚190 The average tax rate is the total amount of tax
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Multiplier. All calculations are found in the appendices. Original Setup Using the original assumptions our initial results regarding the desired profitability of the Shady trail are positive: * Net Operating Income (NOI)‚ Cash Flow from Operations (CFO) and Cash Flow after Financing (CFAF) are all positive. * A Loan-to-Value Ratio of 70% is acceptable for a small industrial property. * Gross Rent Multiplier (GRM) of 113 means the property has good market value. * Return on Assets
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simply analyzing the industry and outside environment. Therefore‚ the report mainly focuses on the analysis of the financial statements. Analysis includes the capital structure and solvency‚ liquidity‚ operating performance and profitability‚ and cash flow statements. By using common-size analysis‚ ratio analysis and trend analysis‚ taking the rapid expansion in recent 5 years into consideration. Though some results turn out to be either not satisfactory or below industry average‚ the overall performance
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Finance assignment #2 – Capital Budgeting Example Team Information Alias Name Student Number *Tiffany HUANG Wan Hong 14430819 Kelly ZHAO Yun 14430835 Cara ZHU Zhen Yi 14410273 Sherry TAN Xin Yi 14431092 Priscilla HU Xiao Ling 14431130 L.X LIU Xun 14433176 Tiffany CHO Tiffany 14444984 Introduction XYZ Bicycle Co.Ltd. is a bicycle production company‚ it is considering a new plan that whether to introduce a new mountain bike product line‚ for the reason that the company holds the view
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statements‚ and cash budgets‚ are an integral part of financial forecasting. They show the results of assumed events rather than actual events. 3. Cash flows are the ultimate source of financial value. Therefore‚ cash flow analysis and forecasting are important parts of a firm’s financial plans. 4. After-tax cash flow is equal to earnings after tax plus noncash charges. 5. The statement of cash flows shows the effects of a firm’s operating‚ investing‚ and financing activities on its cash balance
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ratios go up. It is mainly because the sale increases through adding the variety of goods. In addition‚ the liquidity analysis will show that the company is in a good position even though liquidity ratios are low. The main reason for that is strong cash flow. Besides‚ this report will evaluate the company’s future development in both positive aspects and uncertainties that recognise this company as a going concern. Finally‚ this report presents several recommendations in two areas: improving operating
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Capital Budgeting Example Background Analysis Factors to Consider in Multinational Capital Budgeting Exchange Rate Fluctuations Inflation Financing Arrangement Blocked Funds Uncertain Salvage Value Impact of Project on Prevailing Cash Flows Host ostHGovernment Incentives Real Options Adjusting Project Assessment for Risk Risk-Adjusted Discount Rate Sensitivity Analysis Simulation Chapter Theme This chapter identifies additional considerations in multinational capital
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