Budgeting and beyond budgeting Introduction With the economic rapid develop recently‚ more and more companies pay attention to the cost budgeting‚ some people think that this is a good and efficient way to operate the company‚ it will take more benefit for them. However‚ some people believe that it is a inefficient method‚ it will waste long time and capital to do‚ and bring the little profit. This essay wills analysis this issue from the different parts. The first part‚ it will talk about the
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Week 9 Assignment 2 Submission Assignment 2: Capital Budgeting Futronics‚ Inc. $2 billion company‚ reducing costs and corporate overhead to use outside vendor resources. Initial investment costs $1 billion. There is 0 salvage value and cost of capital at 8%. Yield cash flows $450‚000 year 1 $350‚000 year 2 $300‚000 year 3 $250‚000 year 4 Internal rate of return Average net return = (450‚000 + 350‚000 + 300‚000 + 250‚000)/4= 1‚350‚000/4 = 337‚500 Average investment = (Investment at beginning
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* Introduction * Delhi Metro is being built and operated by the Delhi Metro Rail Corporation Limited (DMRC). * The Delhi Metro (Hindi - दिल्ली मेट्रो Dillī Meṭro) is a rapid transit system serving Delhi‚ Gurgaon‚ Noida and Ghaziabad in the National Capital Region of India * As of November 2010‚ DMRC operates around 2‚700 trips daily between 6:00 and 23:00 running with an interval of 2.5 minutes between trains at peak frequency. * The trains are mainly of four coaches‚ but due
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Budgeting is a key component in management short and long term planning A budget is a key management tool for planning‚ monitoring‚ and controlling the finances of a project or organization. It is also defined as management’s quantitative expression of plans for forthcoming period. It also estimates the income and expenditures for a set period of time for your project or organization. Budgets are prepared at various levels of an organisation. Effective budgeting can allow managers to perform
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of Capital Budgeting 1. A firm should never accept a project if its acceptance would lead to an increase in the firm’s cost of capital (its WACC). a. True b. False ANSWER: False 2. Because “present value” refers to the value of cash flows that occur at different points in time‚ a series of present values of cash flows should not be summed to determine the value of a capital budgeting project. a. True b. False ANSWER: False 3. Assuming that their NPVs based on the firm’s cost of capital are
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planning continues to be a dominant policy instrument in many low-income and emerging market economies. Similarly‚ public investment plans (PIPs)‚ which were in vogue in the 1970s‚ then fell from grace as theories of economic development based on capital accumulation lost influence‚ are now fashionable once more. What explains these developments? Why is planning deemed useful and relevant for developing countries‚ but has become outmoded in more advanced countries In addition‚ wide-ranging discussions
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Case Analysis: Capital Magazine Problem Identification: Should Prisma Presse release the new magazine Capital in September‚ or postpone until the economic situation improves? If they go ahead with the launch‚ should they go with a subscription or a newsstand strategy? Alternatives: 1) Pospone the launch until the economy recovers and advertising rates start growing again. If the economic situation doesn’t get better withdraw the new magazine. +Inexperience in business magazines.
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Topic Gateway Series Budgeting Budgeting Topic Gateway Series No. 27 1 Prepared by Louise Ross and Technical Information Service Revised March 2008 Topic Gateway Series Budgeting About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition‚ a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and
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EXECUTIVE SUMMARY Objective: To study the financial aspects of Delhi Metro Rail Corporation. Rationale: Metro rail service in Delhi has come as a much awaited gift for the people of Delhi‚ which has indeed changed the transport facility of the city. It has become the "life line" of Delhi as people are dependent on Delhi Metro for commuting to different places within the city. Delhi Metro Project has been recognized all over the world for its specialty in terms of a hi-tech rail‚ better equipped
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Chapter 13 Real Options and Other Topics in Capital Budgeting Learning Objectives After reading this chapter‚ the student should be able to: ◆ Explain why conventional NPV analysis may not capture a project’s impact on the firm’s opportunities. ◆ Identify five different types of real options. ◆ Explain what an abandonment/shutdown option is‚ give an example of a project that includes this type of option‚ and explain what an option value is. ◆ Explain what a decision
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