CHAPTER 8 MAKING CAPITAL INVESTMENT DECISIONS Answers to Concept Questions 1. In this context‚ an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what the asset or input is actually worth today‚ not‚ for example‚ what it cost to acquire. 2. a. Yes‚ the reduction in the sales of the company’s other products‚ referred to as erosion‚ should be treated as an incremental cash flow. These lost sales are included because
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Annual Report and Form 20-F 2012 bp.com/annualreport Building a stronger‚ safer BP Annual Report and Form 20-F 2012 bp.com/annualreport Building a stronger‚ safer BP Front cover imagery The Petroleum Geo-Services (PGS) Ramform Sterling seismic vessel‚ which conducts seismic surveys for BP. Left image: the vessel working in the Ceduna Basin‚ Australia. Centre image: the vessel tows 12 streamers (pictured) behind it‚ each 8km long and equipped with hydrophones to pick up echoes from
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Start-up capital is the finance needed by a new business to pay for essential fixed and current assets before it and begin trading Revenue- money coming into the business. Selling products Revenue= number of products sold x price Costs- money going out of the business. E.g. salaries‚ rent‚ electricity/water Profit- Money which is left over after all costs have been paid P= R-C A car manufacture - Machinery - Labour - Land - Utilities - Raw materials A school - Labour
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FINANCE 2 ASSINGMENT 2011-2012 Nikesh Hindocha (10044607) Part A. Introduction As part of my assignment‚ I have been asked to discuss the following statement “Mergers and acquisitions can be value destroyers or value creators”. A merger can be defined as when two equal businesses in terms of profit margin and status‚ combine in order to become one legal entity. Initially‚ the fundamental reason for this merge is to produce a company that is worth more than the sum of its parts
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evaluating the risks associated with a proposed project 3. (TCO 1) Book values are different from market values because: (Points : 3) Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company’s balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. All of the above None of the above 4. (TCO 1) Which
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epitome of the massive collective‚ where employees usually treated their organization as their family. Additionally‚ these large organizations and government related enterprises had a multitude of standardized procedures and regulations‚ numerous managerial levels‚ and promotions based on knowledge of and obedience to these procedures and policies‚ exemplifying the hierarchy culture (A.Ralson‚ Jane‚ H. Terpstra‚ Wang‚ C.Egri‚ 2006). And this study‚ we will review some literatures at first sector and
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Term Paper Managerial Success Productivity is the essence of any work environment. Despite the type or arena of employment; workers produce something whether it is an object or an intangible item. Many occupational tasks are manual‚ clerical‚ or intellectual. Despite which type of task; a manager is responsible for the product‚ which is a large responsibility. Such responsibility necessitates skills such as goal setting‚ planning‚ implementing‚ and controlling. These four skills dictate the
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Raymond Castillo Managerial Communications (Man-373-OL009) Written Assignment 1 Hynes introduces a calculated approach to managerial communication by dissecting it into three separate‚ yet mutually dependent functions. Hynes believes that with these approaches‚ management and employees alike can learn to adapt to one another to create an effective work force. The first layer is based on the idea that an employer and his employees can create a positive work atmosphere with the communication climate
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17/07/2013 Finance Semester 2‚ 2013 Seminar 1 Introduction to finance & ethics in finance Ross et al. chapter 1. These powerpoint slides have been adapted from Frank Finn Professor of Finance Tom Smith’s (UQ) teaching material of “Three key finance ideas of valuation” and Dr. Scott McCarthy’s teaching material. 1 What is Finance? • Every business is a process of acquiring and disposing assets: real assets and financial assets. • Finance is a science of valuation and management
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COR167e Managing Your Personal Finances Tutor Marked Assignment 01 Name: Jamilah Binte Hamzah PI Number:Question 1 a) I want to acquire $20 000 for my wedding in 4 years’ time‚ this can be done by saving up $500 every month. I want to acquire a savings of $50 000 in 40 years’ time for retirement‚ this can be done by saving more money and cutting down on the expenses that I do not need. I would like to clear my loans worth of $11 000 in total in 5 years’ time‚ this can be done by paying back
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