Consider a project to produce solar water heaters. It requires a $10 million investment and offers a level after-tax cash flow of $1.75 million per year for 10 years. The opportunity cost of capital is 12 percent‚ which reflects the project’s business risk. Suppose the project is financed with $5 million of debt and $5 million of equity. The interest rate is 8 percent and the marginal tax rate is 35 percent. The debt will be paid off in equal annual installments
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“EXPLORE UNSEEN WORLD” 1.0 Purpose of the project The purpose of this project is to appeal a consideration and permission from Yang Berusaha Prof. Madya Dr. Mohd Amy Azhar Bin Haji Mohd Harif‚ the Director of the Department of Student Affairs and Alumni to implement a project entitled “EXPLORE UNSEEN WORLD” which is held by the Comittee of Leadership and Student Development of TM’s Student Residential Hall. 2.0 Project Background The project is held by the comittee of Block A together with
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QUESTION 1: 1. If the first deposit is at 36 years and the last expected deposit is at 65 years‚ then annual deposits will be made for 30 years. Expected annual withdrawals are $90‚000 for 15 years from the retirement fund with a bank that offers compound interest of 8% annually. Calculation Present value (PV) =? Future value (FV) = (90‚000*15) = $1‚350‚000 Periodic payment amount (PMT) =? Interest rate per period (Rate) = 8% or 0.08 Number of payment periods (Nper) = 30 Using the Excel
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Introduction Brand can be defined as a name‚ term‚ sign‚ symbol or design‚ or a combination of them intended to identify a company or its goods and services and to differentiate them from those of other competitors. The objectives that a good brand will achieve include delivers the message clearly and differentiate yourself from your competitor. Brands provide multiple sensory stimuli to enhance customer recognition. For example‚ a brand can be visually recognizable from its packaging‚ logo‚ shape
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There is nothing like optimum capital structure for a firm. The Optimal Capital structure is that Capital Structure at which the weighted Average cost of capital (Ko) is Minimum. It is that combination of Equity and Debt at which the total cost of capital is mini-mum. Trade-off theory argues that there ’s an optimal amount of debt of each firm. At this level of debt‚ firms can take the most advantage of debts. Debts can be tax shield so that they can save money for firms to reinvest in
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Liuqing He Fin 423-Strategy Paper Professor Haddad April 9‚ 2015 Marriott Corporation As the vice president of project finance of Marriott Corporation‚ I am conducting an analysis of our company (Marriott Corporation) for calculating the hurdle rates at each of our firm’s three divisions: lodging‚ restaurant and contract services. I use Weighted Average Cost of Capital (WACC) as the hurdle rate. The investment projects in our company are selected by discounting the appropriate
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Corporate Branding and Globalization Introduction Globalization can be said to be an increasing pattern of worldwide interconnectivity that has led to a large number of contrasting perceptions emanating from cultural differences. With increasing globalization‚ the world appears to have become a much smaller place‚ resulting in the amalgamation of cultures as well as greater sensitivity towards cultural differences. There are varied kinds of differences relative to minority rights‚ religious
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The growing Importance of CSR in Pakistan. By Mushtaque Ali Jariko‚ PH.D student‚ Aalborg University‚ Denmark. ABSTRACT: The role of business in society has been debated in economic literature for a long time. Corporate Social Responsibility requires companies to acknowledge that they should be publicly accountable not only for their financial performance but also for their social and environmental record performance. More widely‚ CSR encompasses the extent to which companies should promote human
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1. Corporate Social Responsibility Corporate social responsibility has several definitions but is simply defined by Woods and others (2013‚ 27) as the obligation of organisations to behave in ethical and moral ways. It generally refers to the notion that corporations have a responsibility to the society that sustains them. Over the years‚ the theory of corporate social responsibility has continued to develop in importance and significance. In modern day business it is common practice for organisations
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Summertown International: Managing Corporate Turnaround Abdoullah Albizreh‚ Wassim‚ Cathal 17th April 2013 | | 1.0 Executive Summary 3 2.0 Introduction 3 3.0 Corporate Structure 3 3.1 Summertown Joinery 4 3.2 Dubai and Abu Dhabi Branches 4 3.2.1 Fit Out (Dubai and Abu Dhabi) 4 3.2.2 Turn Key (Dubai and Abu Dhabi) 4 4.0 Organic Growth of Summer Town 5 4.1 Financial Growth of Summer Town 5 5.0 Financial Crisis 2008 and regional Impact 6 6.0 Analysis of
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