The Charles H. Kellstadt Graduate School of Business DePaul University FIN 555: Financial Management Prof. Randy Fisher Case Study Questions: Ocean Carriers These questions relate to the Ocean Carriers case in your course packet. You can find the data for this case on the course website in a spreadsheet named: Ocean Carriers Exhibits.xls. This case provides the opportunity to make a capital budgeting decision by using discounted cash flow analysis to make an investment and corporate
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As with any other merger analysis‚ we need to examine the present value of the incremental cashflows. The cash flow today from the acquisition is the acquisition costs plus the dividends paidtoday‚ or:Acquisition of Hybrid–$550‚000‚000Dividends from Hybrid$150‚000‚000Total–$400‚000‚000Using the information provided‚ we can determine the cash flows to Birdie Golf from acquiringHybrid Golf. All earnings not retained are paid as dividends‚ so the cash flows for the next five yearswill be: Year 1Year
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“Brooklyn Cop” Critical evaluation Norman MacCaig describes the character of the “Brooklyn cop” a corrupt‚ thuggish American. A policeman is meant to put across trust and is employed to serve and protect the people. Instead the "Gorilla with a nightstick" is insensitive‚ violent and appears to enjoy the murderous nature of his occupation. However despite his brutal nature and rough exterior there is a gentler side to the cop who loves his wife and fears for his life. “Brooklyn Cop”
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Net Present Value/Present Value Index The management team at Savage Corporation is evaluating two alternative capital investment opportunities. The first alternative‚ modernizing the company’s current machinery‚ costs $45‚000. Management estimates the modernization project will reduce annual net cash outflows by $12‚500 per year for the next five years. The second alternative‚ purchasing a new machine‚ costs $56‚500. The new machine is expected to have a five-year useful life and a $4‚000
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INF3708/201/3/2013 SOFTWARE PROJECT MANAGEMENT TUTORIAL LETTER 201 FOR INF3708 SOLUTIONS Solutions (Highlighted) - Assignment 01 – Semester 1 ASSIGNMENT 01 - COMPULSORY Study material Total marks Hughes & Cotterell: Chapters 1 – 4 25 marks = 100% UNIQUE NUMBER: 203647 1. A 1. 2. 3. 4. 5. is said to be “A specific plan or design” or “A planned undertaking” System Scope Project Software Management -2- INF3708/201 2. Software Project Management scope normally comprises the
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9.62% discount rate‚ but this is a good project and the returns will be great only if everything remains like expected. So‚ I would also recommend them to evaluate themselves at least yearly as things may change from year to year. 3. What is the net present value (NPV) and internal rate of return (IRR) for the
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000 × $2) – (4‚500 × $2) = $1‚000 U 4. Stiner Company’s total materials variance is A) $2‚000 U. B) $2‚000 F. C) $2‚100 U. D) $2‚100 F. = $1‚000 + $1‚000 = $2‚000 U 5. Which of the following will increase the net present value of a project? A) An increase in the initial investment. B) A decrease in annual cash inflows. C) An increase in the discount rate. D) A decrease in the discount rate. 6. Which of the following is true? A)
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References: Byrd‚ J.‚ Hickman‚ K.‚ & McPherson‚ M. (2013). Managerial Finance. San Diego‚ CA: Bridgepoint Education Inc. Juhász‚ L. (2011). Net present value versus internal rate of return. Economics & Sociology‚ 4(1)‚ 46-53‚126. Retrieved from http://search.proquest.com/docview/1038451731?accountid=32521 Klein‚ T. C. (2005). Internal rate of return for law firm financial executives: A
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TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 008 #89 SECTION: 8.4 TOPIC: NPV PROFILE TYPE: PROBLEMS 2. M&A‚ Inc. maintains a constant debt-equity ratio of .4. The firm had net income for the year of $140‚000 and paid $98‚000 in dividends. The firm has total assets of $700‚000. What is the maximum sustainable growth rate of the firm given this information? A. 6.38 percent B. 9.17 percent C. 16.28 percent D. 24.38 percent
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I. Introduction The Rockaway peninsula is part of Queens‚ New York City. The communities there‚ referred to as the Rockaways‚ border the water‚ with long stretches of picturesque beaches. The name "Rockaway" (phonetically spelled) means "place of sands" in the Munsee language of the Native American Lenape people‚ who once inhabited the area. After the Dutch West Indian Company bought the land‚ many of the indigenous groups were forced to move and were replaced by European settlers. In the 19th
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