discount rate‚ but this is a good project and the returns will be great only if everything remains like expected. So‚ I would also recommend them to evaluate themselves at least yearly as things may change from year to year. 3. What is the net present value (NPV) and internal rate of return (IRR) for the
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Present Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate‚ and the higher the discount rate‚ the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows‚ whether they be earnings or obligations. Present Value of annuity is a series of equal payments or receipts that occur at evenly spaced intervals
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occurs when inaccurate information exists. a. 0 The principle of valuable ideas b. 0 Free-rider problem c. 0 Moral hazard d. 0 Adverse selection Objective: Discuss 12 principles of foundational corporate finance. 2. __________ refers to situations wherein the agent can take unseen actions for personal benefit even though such actions are costly to the principal. a. 0 Moral hazard b. 0 Zero-sum game c. 0 Adverse selection d. 0 The behavioral principle Objective: Discuss 12 principles
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Case 19 1. Worldwide Paper Company has an opportunity to take on a new project. With this project they would be considering an addition of a new on site Longwood wood yard. The yearly cash flows for this investment seem to be very good if everything remained or exceeded the assumptions on which the cash flows $18 million is not a small investment but in the long run the company catching up to get back the invested money and also allowing them to make huge profits. The company is paying a 40% tax
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MORALS Morals http://plato.stanford.edu/entries/kant-hume-morality/ Growing up I always was told to tell the truth‚ treat everyone how you would want to be treated and not to lie‚ cheat‚ or steal because these are morals I should live by. The definition of morals is a principle or habit with respect to right or wrong conduct. What is right and wrong‚ and who decides these rights and wrongs? I will go back and explore Kant and Locke to hopefully answer my questions. • The values people
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1 - Energy Costs Find information on energy cost: Advantages (government websites) 2 - Cost of Equity‚ Appropriate Discount Rate (WACC) Cost of equity 1. Formula Risk Free Rate + (Market Premium x Overall Company Beta) 2. Each part a. Risk free rate (10-year T-bill) i. bond rating chosen * interest rate * b. Market premium c. Beta i. Appropriate Discount Rate (WACC) 1. Formula Weight of Debt x After-Tax Cost of Debt) + (Debt to Equity x Cost of Equity) 2. WACC (important – why is it important
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individual has different morals what they think is right or wrong or good or bad and what they think is an acceptable form of conduct in our society. Christianity it would seem‚ played a big part in our legal rules of today as you will see. For example‚ as the Ten Commandments say‚ “Thou shalt not steal”‚ this is a moral rule but it is also part of the Theft Act of 1968 so it’s a legal rule too. We would never encourage murder and most of us would say this is a moral rule but some would do this
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managers Chapter 7— Net Present Value and Other Investment Question 1 : List the methods that a firm can use to evaluate a potential investment. There are discounted and non-discounted cash-flow capital budgeting criteria to evaluate proposed investments. They are 1) Net present value: NPV is a discounted cash flow technique‚ which is the difference between an investment’s market value and its cost. NPV = Present value of cash inflow- Present value of cash outflow The investment
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in cutting. The boy asks the wise old man about the present and how could he get it. He had heard about how wonderful it was and how happy and successful it would make him. As the boy grows into his teens he keeps trying to find out how to attain this present. The old man tells him he already knows how to attain it‚ the present is a gift we all have to give to ourselves. As the boy grows into a young man he gives up the search for The Present‚ and he begins running into problems at work and in his
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innovation therefore created room for rapid spread of films from their country of origin to other countries‚ in which Nigeria is not an exception. Today in Nigeria‚ films made in Hollywood USA‚ France‚ India‚ China‚ etc. are always in high demand. Our present Nigeria society now has a Europeanized look. Our youths now strive to talk‚ walk‚ behave‚ eat‚ and dress exactly like characters in foreign films‚ to the detriment and abandonment of our indigenous cultures. The influence of foreign films has not
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