workers that may not be allowed to be laid off. By cutting their pay to janitorial status‚ it would affect the NPV in a negative way and if they are required to maintain their current level of income then the project may cost more to fund it then rather just keep the original machines. Another factor to weigh is the structure of the contracts between the company and the OEM’s. The economy in Europe is another factor that needs to be accounted for as the downturn may pose a threat to the company. Lastly
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1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal‚ a project finance framework was employed.” Usually‚ project finance framework is used when the project has predictable cash flows‚ which can easily represent operating targets through explicit contract. When cash flows are certainty‚ the company can have
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F523 - SPRING 2013 BOEING CASE 1. What is the appropriate required rate of return against which to evaluate the prospective IRR ’s from the B ANSWER:The appropriate rate of return against which to evaluate the IRR is the risk-free rate‚ plus the market risk 1a. Please use the capital asset pricing model to estimate the cost of equity. At the date of the case‚ the 74 over T-bonds. Which beta‚ risk-free rate‚ and risk premium did you use? Why? Financing Components Debt Equity Market Values Weight
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An expense is normally incurred by a firm to generate sales‚ e.g. promotional expenses which are selling expenses which are directly related to the generation of sales. Most of the expenses normally form a part of operating expenses and are included in ‘cost of sales’. It may either be raw materials‚ labor‚ etc.‚ or capitalized assets which are either depreciated or amortized over a period of time. These are known as matching costs. The other types of costs are ‘period costs’ which are mostly mentioned
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MARKETING STRATEGY Ryanair case What is your assessment of Ryanair launch strategy? From my point of view‚ the strategy implemented by Ryanair was perfect because it is focused on capturing those passengers who have the price as the main criterion in choosing the mean of transport. There is a wide difference between the fare of the air companies with the ferry or rail giving rise to another variables‚ as comfort or no time‚ do not influence by the time of the decision-making. However‚ Ryanair
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• If Franchisees buy things from informal sources or the above confinement on wellsprings of supply is unenforceable‚ sovereignties are forced or (if eminences are as of now part of the framework) balanced upward significantly to compensate for lost income at the Franchisor/partner level. • If Franchisees don’t get deals/item buy shares‚ they can lose their regional rights‚ be ended and/or ineligible for reestablishment. • If you are uncomfortable with the working association with a Franchisee
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|Corporate Finance | |Nike Case | | | | |
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valuation. We have reduced ROE to the 10% cost of capital after 2010‚ assuming that the company will have exhausted valuable growth opportunities by that date. With PVGO = 0‚ PV = EPS/r. So we could discard the constant-growth DCF formula and just divide EPS in 2011 by the cost of capital: The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15%
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B Problem Statement Barbara Printup must determine the packaging for Metabical that will best capture the accurately forecasted demand of the target market. With many substitutes for weight loss in a variety of packages and price points‚ it will be important to create a package that can be priced in a way to both drive sales and continued use of the 12-week drug. Printup must also develop a pricing model to align with the packaging and the price expectations of the target market. Since this is
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Ensayo sobre Happy Feet ¿Se ha sentido usted marginado de un grupo simplemente por actuar distinto a todos los demás integrantes y pesar de eso se siente feliz porque hace lo que realmente le gusta? Desde que Mumble‚ el protagonista de la película Happy Feet‚ rompe su cascarón y mueve rítmicamente sus pies‚ se muestra diferente al resto de la colonia de los pingüinos emperador en el medio de la Antártica. En un comienzo parece que será muy fácil cambiar su peculiar forma de expresarse‚ gracias
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