Key concepts and skills Project Cash Flows Relevant Cash Flows The Stand-Alone Principle Incremental Cash Flows Sunk Costs Opportunity Costs Side Effects Net Working Capital Financing Costs Other Issues Pro Forma Financial Statements and Project Cash Flows Getting Started: Pro Forma Financial Statements Project Cash Flows Projected Total Cash Flow and Value More about Project Cash Flow A Closer Look at Net Working Capital Depreciation Evaluating Equipment Options with
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CASE 2: VALUING CAPITAL INVESTMENT PROJECTS CORPORATE FINANCE GROUP Y Growth Enterprises‚ Inc When valuing any project‚ the free cash flows must be determined in order to be able to successfully implement any method of capital budgeting. Growth Enterprises is currently considering four projects. Each has an equal required initial investment of $10‚000‚000 which is followed by a set of cash flows different for each project. Depreciation figures for each project were calculated on a straight-line
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Extra Credit Assignment: Yeats Valves and Controls Inc. Completed as a Group with the Following Individuals: (in alphabetical order by last name) Adetunji Adeniyi Tung F. Cheng Gregory Chiu Rashmin Patel WenHao Zhang Course Title: Accounting and Finance Course No./Section: MG6093 Instructor: Frank X. Apicella November 28‚ 2012 Yeats Valves Question The following are questions which should focus the groups on important
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SPE-152022-PPSPE-152022-PP on Sour Gas Development Project Case Study Copyright 2012‚ Society of Petroleum Engineers This paper was prepared for presentation at the SPE International Production and Operations Conference and Exhibition held in Doha Qatar‚ 14–16 May 2012. This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Society of Petroleum
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|MBA 513 – Project Cost Management | |Project Manager: Manager or Leader? | |How the collaboration of management and leadership skills makes a great Project Manager. | | Ednaline Concepcion | |12/12/2009
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CORPORATE FINANCE BWFM5013 Group Assignment Select 5 listed companies from a business sector and prepare a report on Corporate Financial Analysis. Project Help Manual This lists some of the questions that may help you to come up in the context of the project. Please take note that you are not required to answer all questions. To understand the relationship between managers and stockholders‚ try answering the following questions. Note that you may not have the information to answer every question
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chairlifts. Suppose that one lift costs $2 million‚ and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes‚ but there are only 40 days a year when the extra capacity will be needed. (Assume that Deer park will sell all 300 lift tickets on those 40 days.) Running the new lift will cost $500 a day for the entire 200 days the lodge is open. Assume that the lift tickets at Deer Valley cost $55 a day. The new lift has an economic
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partnership’s debt. The second financial strategy is investing in projects that increase shareholder value. Marriott uses the discounted cash-flow techniques to evaluate potential investments that falls in line with Marriott’s growth objectives. It is beneficial because it considers the present time value of investment. By comparing to its hurdle rates‚ Marriott concentrates on the projects which will bring potential return. The projects which increase shareholder value can result in profitable and competitive
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homework 7 Globalizing the Cost of Capital Budgeting at AES Chia yun ‚Tsai(Debbie) 2013/3/22 The reason why Rob Venerus used the cost of capital concept to improve upon what AES had used in the past for a discount rate is because the old model always used the same discount rate for the model. However‚ with electricity generating businesses around the world‚ the old model started to cause some problems. In the past‚ AES used the same cost of capital for all of its capital budgeting‚ but the company’s
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Harvard Business School 9-298-092 Rev. December 4‚ 1998 Valuing Capital Investment Projects 1. Growth Enterprises‚ Inc. (GEI) has $40 million that it can invest in any or all of the four capital investment projects‚ which have cash flows as shown in Table 1 below. Table 1 Comparison of Project Cash Flows* ($ thousands) Year of Cash Flow Project A. B. C. D. Type of Cash Flow Year 0 Investment Revenue Operating expenses ($10‚000) Investment Revenue Operating expenses ($10‚000) Investment
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