Hittle Company Ltd (Case Study) You are a financial analyst for the Hittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments‚ project X and Y. Each project has a cost of $10000 and the cost of capital for each project is 12 percent. The projects expected net cash flows are as follows: |Expected Cash flows | | | | | |year
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This essay will look at a case of acute care needed by Jake. For the purpose of this essay the only intervention discussed will be the care surrounding Jake’s nutrition and hydration‚ with research and evidence being considered and applied appropriately. Jake’s initial assessment‚ using the ABCDE approach‚ will be discussed with an explanation of the pathophysiology behind his condition. This essay will also explore the impact on the family of having an infant with bronchiolitis with a focus on the
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Capital Budgeting Case Theresa Cruz‚ Jesika Watson‚ Sophina Lane QRB/501 March 30‚ 2015 Melinda Gregg Capital Budgeting Case Analyzing the Results In the two capital budgeting cases corporations (A and B) have different revenues values and expenses as well as variable depreciation expenses‚ tax rates and discount rates. The members of our team had to compute both corporate cases NVP‚ IRR‚ PI‚ Payback Period‚ DPP‚ and project a 5-year income statement and cash flow in a Microsoft Excel spreadsheet
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A. What negative effects for Mary might this error cause? This is a server error in Mary’s case because depression and herpes were treated during this time. If the court sees this they could question whether or not she is an unfit mother even if she was treated. The court could suggest that the divorce could cause her depression to come back and for treatment to start again. Then the court could be concerned for the child’s well being with her history of depression. With the herpes the court could
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Case Study: ‘Ocean Carriers’ By: Alyssa Linder Wenliang Zhang Xhangoli‚ Eva 1. Daily spot hire rates are determined according to supply and demand of the shipping capacity. According to the article‚ the supply of ships available equals the number of ships currently in the fleet plus any new ships added‚ minus any scrapings and sinking. According to Exhibit 2‚ there are a limited number of ships older than 24 years which are likely to be scraped. For those ships under the age group
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Ginny’s Restaurant 1.a) What is Ginny’s current wealth? b) If Ginny spends nothing today‚ how much can sheconsume next year?a. Virginias current wealth = NPV (6%‚ 2‚ 3) = $4.83M. She can consume $4.83M today. b. Assuming she consumes nothing today‚ she can consume $5.12M next year. 2. What should Ginny do to maximize her wealth?Virginia should invest $3m of her money into the restaurant and put the rest in the bank. At theend of the year‚ she will have $5.46M. (ie. A return of 36.5%). Her wealth
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Case #22 Victoria Chemicals Synopsis and Objectives go/no-go decision 1. The identification of relevant cash flows; in particular‚ the treatment of: a. sunk costs b. cash flows obtained by cannibalizing another activity within the firm c. exploitation of excess transportation capacity d. corporate overhead allocations e. cash flows of unrelated projects f. inflation. 2. The critical assessment of a capital-investment evaluation system. 3. The treatment of conflicts of interest
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Present Value (NPV) are both powerful tools used in business to determine whether or not to invest in a particular project; both methods have its pros and cons. If given a choice I would choose NPV‚ because of the potential to anticipate profitability. As it is assumed that the objective of a firm is to create as much shareholder wealth as possible for its owners through the efficient use of resources‚ the preferred method in determining whether or not to invest in a project is NPV. The reason for
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different types of methods to determine its capital budgeting proposed projects. They include Earnings per Share (EPS)‚ Pay Back Period (PBP)‚ NPV‚ and the Internal Rate of Return (IRR). Of the four methods‚ the two favorable to use for evaluation would be NPV and IRR while the EPS and PBP would be less favorable to use because of its evaluation process. Using NPV is a good method to use to evaluate the project because it takes in account for all the costs relevant to the project and includes all the
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approaches to determine the correct valuation of their South African investment opportunity. Financial analysis- Approach 1 – SP - $80 NPV = $83 MILLION @ 14% Required return. (figure 4) Cost of equity – 15% Cost of debt – 10% Capital structure – 12% Approach 2 – SP- $80 Use Cost of capital to fund new venture 14% Required return @ 24% NPV = -28M (figure 4) Approach 3 – Cost of Capital – 14% RR > cost of capital = lower cost of capital
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