1) Using pertinent information from the case text‚ prepare a capital budgeting analysis of the wind turbine project using the payback and net presentation value or internal rate of return models. Costs for Wind Turbine include: SEDs Fee - Grant ($157‚000 - 15‚000) $142000 Purchase and Installationn - Grant ($3‚900‚000 - $582‚000) $3‚318‚000 · Loan for $3‚300‚000 for 10 years and 7.3 interest rate $465‚935.76 per year (10 years) · Cash $18‚000 Insurance and Maintance Fee $75000 per year
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School of Management Blekinge Institute of Technology THE IMPORTANCE OF THE PAYBACK METHOD IN CAPITAL BUDGETING DECISION. By Alaba Femi‚ AWOMEWE & Oludele Olawale‚ OGUNDELE Supervisor: Anders Hederstierna Thesis for the Master’s degree in Business Administration Fall/Spring 2008 THE IMPORTANCE OF THE PAYBACK METHOD IN CAPITAL BUDGETING DECISION. By Alaba Femi‚ AWOMEWE & Oludele Olawale‚ OGUNDELE A thesis submitted in partial fulfillment of the requirements for the degree
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ADOPTED COMPANY : Valve Corporation THE BUSINESS THE COMPANY IS INTO : Valve Corporation‚ (also known as Valve Software or simply as Valve)‚ is an American video game development and digital distribution company based in Bellevue‚ Washington‚ United States. It is also well known for its social-distribution network steam; and for developing the Source engine‚ which has been used in every Valve game since its introduction in 2004. A BRIEF INTRODUCTION TO THE HISTORY OF THE COMPANY : Valve was founded
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16 October 2013 The Blues Chicago has been branded as the “Blues Capital of the World”‚ with nearly all of the genre’s most prominent and clever musicians as either natives of Chicago or securing their careers once moving to the city. However‚ Chicago is not the origin of the Blues. Though the exact derivation of the Blues was on no account confirmed‚ customarily‚ it is acknowledged that it was sustained in the North Mississippi River Delta in the late nineteenth century following the Civil War
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W.B. “Bill” Flinder‚ the president of Flinder Valves and Controls Inc. (FVC)‚ and Tom Eliot‚ the Chairman and CEO of RSE International are currently in the midst of negotiating a merger of FVC and RSE. Both companies are aware of the benefits‚ but also remain apprehensive due to the risks of completing an acquisition in the struggling economy. Prior to 2008‚ the U.S. manufacturing industry had experience a decrease in consumer demand because of tighter borrowing standards and a weak housing sector
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Corporate Finance Juan Carlos Ganme Gerardo Fumagal Osvaldo Gallegos Cases: Marriott A and Flinder Valves Case Marriott A Questions to solve: 1. Why is Marriott’s CFO proposing the Project Chariot? To improve the financial performance of the firm‚ by re-structuring the company in two separating activities to distinguish those that require a large fixed assets (Real estates ownership) and those with relative low amount of assets
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Management of Working Capital James Ward Instructor: Leon Daniel BUS 650 Managerial Finance November 17‚ 2014 Management of Working Capital A financial metric that ensures operating liquidity of a firm‚ business organization or any other entity including governmental entities is known as working capital. Working capital is the difference between the current assets and liabilities of an organization determining the amount of debt acquired to finance its assets. George had also borrowed
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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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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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Capital Budgeting Methods for Corporate Project Selection In a 2001 Graham and Harvey survey of 392 chief financial officers (CFOs) asked “how frequently they used different capital budgeting methods?” Approximately 75% of the CFOs replied that they use net present value (NPV) or Internal Rate of Return (IRR) always or almost always (Smart‚ Megginson & Gitman‚ 2004‚ pg. 251). Projects are viewed as capital investments in the corporate world‚ and as such‚ are evaluated closely for their possible
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