1. Given the proposed financing plan‚ describe your approach (qualitatively) to value AirThread. Should Ms. Zhang use WACC‚ APV or some combination thereof? Explain. (2 points) * From the statement of AirThread case‚ we know that American Cable Communication want to raise capital by Leveraged Buyout (LBO) approach. This means ACC will finance money though equity and debt to buy AirThread and pay the debt by the cash flows or assets of AirThread. * In another word‚ it’s a highly levered transaction
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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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resources to analyze the industry and use competitor analyses to observe whether the business mission is still being served‚ or perhaps requires modification to meet the changed environmental factors. The firm could use its internet associations to present the customer with a survey for feedback about the product offerings – what they would like to see added to the product line‚ or perhaps what service could be added or improved. Seeking the direct opinion of the loyal customer base is readily at hand
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should build or not build the new generator. The Present Value of the expected costs is $47.146 million dollars. Calculations are listed below: Year Cost x PVIF (I‚ N) = Present Value 1 25 PVIF(8‚1) (.926) = 23.15 2 28 PVIF(8‚2) (.857) = 23.996 Total PV = 47.146 The Present Value of the expected after-tax cash profits are $47.235 million dollars. Calculations are listed below: Year Cash Inflow x Interest Factor = Present Value 3 6 .794 4.764 4 7 .735 5.145 5 8 .681
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Us and Them The short story "Us and Them" by David Sedaris shows different aspects about the relationship between two families. Sedaris was pointing about the people who don’t have TV in their houses‚ and how their life’s it looks like without TV as in Tomkey’s family who don’t believe in TV and his family‚ and he described his neighbor as his new TV show . The simple thing of not watching TV is presenting that the family should be much closer to each other as in Tomkey’s family‚ and better
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JOLLIBEE FOOD CORPORATION 118 Pasong Tamo Makati City Jollibbe@yahoo.com Febuary 7‚ 2013 Mr. Edgardo Maercial Area Manager Jollibee Food Corp. Makati City Dear Mr. Marcial. This is in reference to the product that we purchased from you thee days ago. We found that some of the quantity that we order are wrong. We order (50 kg) of chiken‚ (20 pcks) of buns‚ (50 kg) of french fries‚ (50 kg) of jolly hotdogs.The chicken
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I feel that one of my greatest strengths is not getting involved in other people’s cattiness and drama. I have always been one to listen when a friend needs someone to talk to and I always tried to be understanding‚ but I always hated seeing people others try to take sides in arguments. In my experience this is how a lot of people lose friends and how clicks are started. In high school I was able to be friends with all different kinds of people with no problem‚ whether they were jocks‚ preps‚ or
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My Strengths and Weakness in Netball Strengths | Weakness | Co-ordination | Balance | Speed | Power | Agility | Shoulder pass | Strengths: 1. My number 1 strength in Netball is my hand eye co-ordination. This is used to the maximum ability by always keeping one eye on the ball all the time and making my eyes‚ arms and legs work together. And because of this I am able to line a shot up whilst trying to throw the ball through the air. 2. Another strength of mine is my Speed. I am
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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
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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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