Vindolanda Vindolanda was one of a series of Roman forts built in northern England (Northumberland) in the last quarter of the 1st Century AD. It became an auxiliary fort which also had a substantial element of civilian accommodation. The forts stretched from east to west‚ and are considered to have been a consolidation of the frontier of the Roman Empire. The Romans invaded southern Britain in AD43‚ and slowly moved north. At one point‚ they had hoped to conquer all of Britain‚ but never
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capital intensive investment project with unequal life. Consider the following project before a financial manager. Project A Project B a. Investment Outlay (Rs.) 75‚000 50‚000 b. Annual expenses (Rs.) 13‚000 15‚000 c. Life of the Project (years)
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Payback Period = BY + UC CF BY = the year before full recovery UC = the unrecovered cost at start of year CF = the cash flow during the year Net Present Value NPV = S Annual Cash Flow - Initial Investment (1+k)t Internal Rate of Return: IRR Initial Investments - S Annual Cash Flows
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many of the gold seekers were from America‚ who were looking for new opportunities after the California Gold Rush had been all dried up. British North America was so afraid of the fact that the U.S would expand into their land and take over New Caledonia‚ Governor James Douglas had declared it a British colony and renamed it British Columbia. And it was a good thing that they did‚ BNA is exceptionally large and the defence was immensely weak. So‚ if the Americans had decided to expand into Canada
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current funds most efficiently in long term activities in anticipation of an expected flow of future benefits over a series of years. Charles T Horngren Defines Capital Budgeting is long term planning for making and financing proposed capital outlays. Features of Capital Budgeting:- 1. The exchange of current funds for future benefits 2. Funds are invested in long term assets 3. High Risk Importance of Capital Budgeting:- 1. Long term Effects: - Capital Budgeting decisions determine
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When cash inflows are even: NPV = R × 1 − (1 + i)-n − Initial Investment i In the above formula‚ R is the net cash inflow expected to be received each period; i is the required rate of return per period; n are the number of periods during which the project is expected to operate and generate cash inflows. When cash inflows are uneven: NPV = R1 + R2 + R3 + ... − Initial Investment (1 + i)1 (1 + i)2 (1 + i)3 Where‚ i is the target rate of return per period;
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of an asset‚ the highest return that will not be earned if funds are not invested in a particular project. opportunity cost Question 4 Tapley Acquisition Inc. is considering the purchase of Target Company. The acquisition would require an initial investment of $190‚000‚ but Tapley ’s after-tax net cash flows would increase by $30‚000 per year and remain at this new level forever. Assume the required rate of return is 15 percent. Should Tapley buy Target? Yes‚ because the NPV = $10‚000
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Chapter 13 Risk Analysis and Project Evaluation 13-1. Crusik Distribution Company thinks that there are two possible outcomes for its new facial care product: Either it will be very successful‚ or customers will not appreciate its “unique appeal.” The two outcomes are equally likely‚ but the successful outcome obviously comes with higher revenues. We can picture the situation like this: 50% 40% 30% 20% 10% 0% $1‚000‚000 $5‚000‚000 Thus Crusik’s revenues will be either $1M or $5M. The expected
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TABLE OF CONTENTS INTRODUCTION 1 ISSUES 2 ISSUE 1: INSUFFICIENT RESOURCES 2 RECOMMENDATION 2 Feasibility Study 2 Cost-Benefit Analysis 5 ISSUE 2: TIME CONSTRAINT 8 RECOMMENDATION 8 ISSUES 3: RESISTANCE TO CHANGE 9 RECOMMENDATION 10 1. Education and Communication 10 2. Participation and Involvement 11 3. Facilitation and Support 11 4. Manipulation and Co-option 11 5. Explicit and Implicit Coercion 11 ISSUE 4: TERMINATION 12 RECOMMENDATION 12 THOMAS-KILMANN CONFLICT MODE INSTRUMENT (TKI) 12 CONCLUSION
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throughput‚ and an increase in gross profit margin from 11.5% to 12.5%. There were some concerns over the project as well. The Transport Division projected they would need to spend GBP2 million with the project‚ and it should be included with the outlay of the project. The marketing department believed that this project would cause the Merseyside plant to cannibalize sales of the Rotterdam plant. The Treasury Staff believed that a hurdle rate of 7% should be used instead of 10%. The Assistant Manager
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