FIN3101 Corporate Finance Practice Questions Topic: Capital Budgeting 1. Marsh Motors has to choose one of two new machines. Machine 1 costs $180‚000‚ has a 3 year life and EBIT of $108‚750 per year. Machine 2 costs $360‚000‚ has a life of 6 years and EBIT of $122‚875 per year. Assume straight line depreciation over the life of the machine. Marsh is a levered firm with a debt equity ratio of 0.40. The beta of equity is 1.125 while the beta of debt is 0.25. The market risk premium is 8 percent
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CAPITAL BUDGETING AT RELIANCE CAPITAL Specialization: Finance Under the Guidance of: Submitted By: Mr. Debashish Chaudary Prarthana Bajaj Mrs. Archana Singh Nupur Singhal Utsav Goel Taruna Bhadana Arjun
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LITERATURE REVIEW A lot of investigators have studied working capital from different perspective and in different Surroundings. The subsequent ones were quite appealing and constructive for our study. The connection between profitability and liquidity was observed‚ as calculated by Current ratio on a section of joint stock businesses in Saudi Arabia via correlation and regression analysis. The learning established that the cash adaptation cycle was of more significance as a computation of liquidity
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Capital Budgeting Capital Budgeting is done because companies need to make Acceptance/rejection decisions for buying fixed assets etc. Features of fixed assets : Investments upfront and returns take a long time. Risk is long term Expenses are indivisible and lumpy Ex. If HUL wants to put up a synthetic detergent plant of 50 cr. Rs. -> by spending 25 Cr. Rs.‚ the plant wont be operational at half the capacityS The Capex decisions are irreversible Projected P&L : Less Sales Raw Materials
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editorial advisory boards of several academic journals. Parallel to his business career‚ he has also pursued a full academic career‚ holding senior posts at various universities. He started his career teaching economics at UMIST (now part of Manchester University)‚ then moved to Kingston Polytechnic‚ also teaching economics. He then went into the engineering industry‚ before returning to Kingston to teach marketing and business strategy. Other significant academic posts included being a member of the
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Prescott‚ the controller for the Blue Ridge Mill‚ was considering the addition of a new on-site longwood woodyard. The addition would have two primary benefits: to eliminate the need to purchase shortwood from an outside supplier and create the opportunity to sell shortwood on the open market as a new market for Worldwide Paper Company (WPC). Now the new woodyard would allow the Blue Ridge Mill not only to reduce its operating costs but also to increase its revenues. The proposed woodyard utilized
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ABSTRACT This report describes capital budgeting techniques such as NPV (The NPV of an investment is the difference between its market value and its cost‚ IRR (The IRR is the discount rate that makes the estimated NPV of an investment equal to zero. PAYBACK (The payback period is the length of time until the sum of an investment’s cash flows equals its cost)‚ discounted payback period (The discounted payback period is the length of time until the sum of an investment’s discounted cash flows equals
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The Role of Performance Measurement in Business Process Re-Engineering QRB 501 December 12‚ 2013 The Role of Performance Measurement in Business Process in Re-Engineering Abstract The purpose of this business study is to test the performance measurement system (PMS) and its interaction with development implementing standard deviation (SD). PMS is the essential of business process engineering (BPR) that is a significant theory in analyzing the interaction between the correlation
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keputusan keuangan dan strategi korporat. * Para konsultan yang memberikan jasa konsultasi finansial dan valuasi * Para analis sekuritas yang ingin mendapatkan pengetahuan analisa fundamental Topik Pelatihan * Valuation and Business Strategy o Valuation for Inside Investor and Outside Investor
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TIME VALUE OF MONEY Time value of money refers to an individual preference of a given amount of cash now rather than the same amount at some future time. The reasons why an individual would prefer cash now: i) Subjective preference for present consumption – one may prefer present consumption over future consumption of goods and services because of the urgency of present wants or the risk of not being in a position to enjoy future consumption. ii) Availability of investment opportunities –
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