Cases and Exercises for Value and Capital Budgeting Corporate Finance Academic Year 2012/2013 1. The treasurer of Amaro Canned Fruits has projected the cash flows of projects A‚ B and C as follows (measured in e): Year 0 Project A Project B Project C Year 1 70‚ 000 130‚ 000 75‚ 000 Year 2 70‚ 000 130‚ 000 60‚ 000 −100‚ 000 −200‚ 000 −100‚ 000 Suppose the relevant discount rate is 12% per annum. (a) Compute the profitability index for each of the three projects. (b) Compute the NPV for each
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Capital Punishment: Its Pros‚ Cons‚ and Effectiveness Within the United States I. Introduction This study looks to explore how capital punishment has had a positive or negative affect on our justice system. Some states enforce capital punishment within their state lines‚ and some do not. However‚ the states that do enforce it hardly ever do so‚ only in some rare instances. Crimes rates in the states vary with some being high and others remaining at a steady rate. Its no question that the
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A review of capital structure theories 1.0 Introduction One of the most contentious financial issues that have provoked intense academic research during the last decades is the theory of capital structure. Capital structure can be defined as a ’Mix of different securities issued by a firm’ (Brealey and Myers‚ 2003). Simply speaking‚ capital structure mainly contains two elements‚ debt and equity. In 1958‚ through combining tax and debt factors in a simple model to price the value of a company‚
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Corporate Finance Capital Budgeting Course Outline CAPITAL BUDGETING Course outline Key Principles in Capital Budgeting: Criteria for Investment Projects Net Pesent Value Internal Rate of Return Payback Profitability Index Finding Cash Flows Maria Ruiz 1 Financial Management Financial management is largely concerned with financing‚ dividend and investment decisions of the firm with some overall goal in mind. Corporate finance theory has developed around the goal of shareholder
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TOPIC 6: CAPITAL ALLOWANCES Learning outcomes: At the end of this topic‚ students should be able to: i. Understand and identify the qualifying plant expenditure for plant and machinery. ii. Compute initial allowance‚ annual allowance‚ notional allowance and accelerated capital allowance. iii. Determine the balancing charge or balancing allowance on disposal of assets. 1.0 Introduction * Capital expenditure is not tax deductible. So‚ depreciation or amortization is also not deductible
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Problem 2-43 (35 minutes) 1. San Fernando Fashions Company Schedule of Cost of Goods Manufactured For the Year Ended December 31‚ 20x2 Direct material: Raw-material inventory‚ January 1 $ 40‚000 Add: Purchases of raw material 180‚000 Raw material available for use $220‚000 Deduct: Raw-material inventory‚ December 31 25‚000 Raw material used $195‚000 Direct labor 200‚000 Manufacturing overhead: Indirect material
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Consequences of Death Penalty 3. Financial Cost of Death Penalty 4. Alternative Ways III. Conclusion Thesis statement: Nevertheless Death penalty is unethical and inhumane; it helps to achieve the balance in the country. Death penalty is one the debatable topics throughout the world. There is a conflict between law and ethics. Public opinion does not coincide with the state opinion. There are 33 countries‚ which use death penalty as capital punishment. According to Amnesty International
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I like ponies alot because they are just soooo cool.3 Discussion Voice Activity 1.03 Discussion Voice Activity 11/26/13 9:12 PM 58 176 All 2 1.05 Discussion Voice Activity 1.05 Discussion Voice Activity 12/010 AM 52 191 All 3 1.06 Discussion Voice Activity 1.06 Discussion oice Activity 12/01/2 PM 46 141 All 4 1.08 Discussion Voice Activity 1.08 Discussion Voice Activity 11/2 47 122 All 5 2.04 Discussion Voice Activity 2.04 DActivity 11/21/13 9:34 PM 114 All 6 2.06 Discussion Voice Activity
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Capital Budgeting Part I PV= FV / (1+i)^y PV= present value‚ FV= future value‚ i= discount rate‚ and y= time. 1a) If the discount rate is 0%‚ what is the projects net present value? Year Cash Flow Discount Rate Discounted Cash Flow 0 -$400‚000 0% -$400‚000 1 $100‚000 0% $100‚000 2 $120‚000 0% $120‚000 3 $850‚000 0% $850‚000 Answer: The projects net present value is $670‚000 If the discount rate is 2%‚ what is the
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Capital One BAD 453 October 30 2012 Case study 5.1 Prepared to: Mr. Nazih El Jor Prepared by: Ghaith Bou louz Capital One is on a daily mission to improve its services. It was founded on the belief that ‘the power of information‚ technology and testing could be harnessed to bring highly customized financial products directly to consumers’. It surely have gained
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