Running head: A COMPARISON OF EVA AND NPV A Comparison of EVA and NPV (discuss the differences and similarity of EVA and NPV; why would companies choose to adopt EVA‚ implementation issues; chronicle the implementation experience of EVA on a real life company). 1 A COMPARISON OF EVA AND NPV 2 A Comparison of EVA and NPV (discuss the differences and similarity of EVA and NPV; why would companies choose to adopt EVA‚ implementation issues; chronicle the implementation
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Founded in 1978‚ Sa Sa has grown from a 40 sq. ft. retail space to become today’s regional "beauty". According to the "Retail Asia-Pacific Top 500" ranking of Retail Asia magazine and Euromonitor in 2014 the Sa Sa holdings is a topmost company in the Hong Kong. As one of the largest sole agents in cosmetics in Hong Kong‚ Sa Sa represents over 100 international beauty brands in Asia. Sa Sa prospers on its successful and proven "one-stop cosmetics specialty store" concept‚ offering customers with
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Introducing the Sa Sa International Holding Limited (China) Sa Sa International Holding Limited‚ a Hong Kong leading cosmetics retailing group in Asia. Sa Sa has approximately 220 stores and retail counters across different regions in Asia. Together with it owns brand and other international brands; Sa Sa offered over 600 brands of skin care‚ and fragrance‚ make-up and hair care products. In 2005‚ in order to track the fast growing trend of China Cosmetic industry‚ Sa Sa International Holding Limited
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N04 HL P1 Q5 Payback Calculation Year Machine A $ Machine B $ 1 45‚000 25‚000 Part of 2 20‚000 (0.57 of 35‚000) 35‚000 Part of 3 - 25‚000 (0.45 of 55‚000) Investment 65‚000 85‚000 1 + 0.57 = 1.57 (Machine A has payback period of 1.57 years) 2 + 0.45 = 2.45 (Machine B has payback period of 2.45 years) Accounting Rate of Return Calculation Machine A $ Machine B $ Net Return 155‚000 205‚000 Total Return-Investment 155‚000 – 65‚000 = 90‚000 205‚000 – 85‚000 = 120‚000
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**What is NPV?** a) If the value of NPV is greater than 0‚ then the project is a go! In other words‚ it’s profitable and worth the risk. b) If the value of NPV is less than 0‚ then the project isn’t worth the risk and is a no-go. So NPV takes risk and reward into consideration‚ which is why we use it in the world of corporate finance and capital budgeting. **Example** In order for us to calculate NPV‚ let’s use the following example. Suppose we’d like to make 10% profit on a 3
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before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer. 2. Assume that the after-tax required rate of return for Deer Valley is 8%‚ the income tax rate is 40%‚ and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the
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know whether to make the investment in Euros or Pesos. When we calculated the NPV in euros we can use two different approaches. You can find the NPV (Euro) by either translate NPV (Peso) by dividing it by 15‚99. However‚ the better solution is to use the expected future spot rate on every cash flow‚ because this estimate is more accurate. Inflation rate is important to look at because‚ if the inflation rate changes‚ the NPV also changes and that will effect their decision. So‚ they have to consider
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| ADVERTISING ARIEL AD BRIEF | | | ISSUES Quality: Ariel is a Tier 1 brand and is expected to deliver the best. There should be no compromise in its quality but as observed by many consumers Ariel when mixed in water‚ after a while small stones can be seen and felt in the surf. They are hard stones and therefore needs to be thrown out. Price: Ariel pricing suits consumers of Sec A and Sec B but the way it has positioned showing middle class families only has led to a confusion in
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TITLE: COMMERCIAL LENGTH: 55 sec PRODUCT: ARIEL SURF WRITER: VIDEO | AUDIO | In our TV commercial we hire the celebrity sahir lodhi as a host.In start of commercial we display our product ARIEL on the screen.We will commence are add from some street. We will place big table for food arrangement for people and will offer them to have that food. Which will make that food mat dirty and which would be difficult enough to be washed by one round by washing. We will ask the people who will going
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present value the net present value (NPV) or net present worth (NPW)[of a time series of cash flows‚ both incoming and outgoing‚ is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price‚ the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash
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