AES - Case Analysis & Write up How would you evaluate the capital budgeting method used historically by AES? What is good and bad about it? Previously‚ the economics of a given project were evaluated at an equity discount rate for the dividends from any project and as it was mostly financed through local debt‚ which was non-recourse to the parent company‚ AES use to evaluate the dividend cash flows at a standard 12%. It is a simple approach with portions of sound reasoning. One could argue that
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VALUE ANALYSIS THE CONCEPT OF VALUE The value of a product will be interpreted in different ways by different customers. Value is subjective. Just as beauty lies in the eyes of the beholder‚ value is highly dependent upon perspective. Frequently‚ the analyst will discover that the different perspectives will lead to conflicting definitions of value. But usually its common characteristic is a high level of performance‚ capability‚ emotional appeal‚ style‚ etc. relative to its cost. This can also
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Modeling the weighted average cost of capital (WACC) Sensitivity analysis using data tables Modeling synergies ***************************** SAMPLE PAGES FROM TUTORIAL GUIDE ***************************** DCF in theory and in practice DCF in theory • The DCF valuation approach is based upon the theory that the value of a business is the sum of its expected future free cash flows‚ discounted at an appropriate rate. • Discounted cash flow (DCF) analysis is one of the most fundamental‚ commonly-used
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Advanced Finance Intervenant/ Lecturer : Michael PAYTE MSc Audit & Management Control Academic Year 2012-2013 Gaelle VANHERPE Maxime ROZIER Yao LIU Marion DOMANSKI TABLE OF CONTENTS GAELLE’S PART PORTER’S 5 + 1 FORCES Competitive Rivalry within an Industry Very high – Kraft Foods has to face a lot of competition International: Nestlé and Danone are the two main competitors. There are present worldwide and exploit the same segments as Kraft Foods. National: Companies
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ASW/QMB-Ch.04 3/8/01 10:35 AM Page 96 Chapter 4 DECISION ANALYSIS CONTENTS 4.1 PROBLEM FORMULATION Influence Diagrams Payoff Tables Decision Trees DECISION MAKING WITHOUT PROBABILITIES Optimistic Approach Conservative Approach Minimax Regret Approach DECISION MAKING WITH PROBABILITIES Expected Value of Perfect Information RISK ANALYSIS AND SENSITIVITY ANALYSIS Risk Analysis Sensitivity Analysis DECISION ANALYSIS WITH SAMPLE INFORMATION An Influence Diagram A Decision Tree Decision Strategy
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NIKE ANALYSIS The Weight Average Cost of Capital (WACC) is the firm’s cost of capital. We can think of WACC as an average representing the expected return on all of the companies’ securities. It is an extremely important number for both corporations and usually financials advisors. Corporations use this number as a minimum for evaluating their capital projects or investments. So if for example the WACC of a firm is 10% and the return on investing in a project is 4.5%‚ then the company would not
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that‚ this paper explain about the steps of Bank XYZ decision process in order to make a decision for PT. ABC‚ a company engaged in palm oil plantation. There are several analysis to help the decision- maker such as financial analysis‚ sensitivity analysis‚ collateral analysis‚ and term and condition of the loan. Those analysis stated in the loan proposal for the need of credit committe meeting. Keywords: decision making‚ loan‚ credit committe‚ palm oil‚ finance 1. Introduction Decision-making
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Chapter 1: I. Key attributed of successful companies a. Have skilled people b. Have strong relationships c. Have enough funding to execute their plans and support their operations II. To be successful‚ a company must meet its first main goal a. Identifying‚ creating‚ and delivering highly values products and services to its customers. III. Corporate life cycle a. Starting up as a proprietorship i. Three important advantage 1. It is easily and inexpensively formed 2. Subject to few
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Project Analysis Marko Hartmann‚ 2010-10-15 Indroduction Most companies prepare each year a list of investment projects planned for the next coming year: The annual capital budget. However‚ being in the list of investments proposals not mean automatic go ahead with this project. Managers have to ask themselves what makes a project tick‚ what are the main uncertainties and how can you recognize these at an early stage. Therefore‚ we learn to use different kinds of analysis –methods like sensitive
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A Comprehensive System for Computer-Aided Tolerance Analysis of 2-D... http://adcats.et.byu.edu/Publication/97-4/cirp_2_7_97a.html 7.0 ASSEMBLY TOLERANCE SPECIFICATIONS An engineering design must perform properly in spite of dimensional variation. To achieve this‚ engineering design requirements must be expressed as assembly tolerance limits. The designer must assign limits to the gaps‚ clearances and overall dimensions of an assembly which are critical to performance. Assembly tolerance limits
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