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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Quest- 1 What is Production Management and its objectives? Explain Scope and function of Production Management? Ans:- Production is basically defend as conversion of Inputs into output through transformation process . Input include 5m‚s i.e. man ‚ machinery ‚ money ‚ material methods &output is final goods. [pic] Examples:- Production Management It is process in which performance of management activities are done with regards to selecting designing operating
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People of the whole world are responsible for climate change.Their ignorance is the main reason behind it.For instance‚ USA has been most widely seen as the counry having the most negative efforts on the world’s climate change followed by China‚Germany has received the best ratings. United Nations Framework Convention on Climate Change agreed that the developed countries are mainly responsible for the current global emissions of greenhouse gases.Just for social and economical development they
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The possible impact of university corruption on customers’ ethical standards Merlin Stone1 and Michael Starkey2 Correspondence: Merlin Stone‚ The Customer Framework‚ Lily Hill House‚ Lily Hill Road‚ Ascot RG12 2SJ‚ UK. E-mail:merlin.stone@thecustomerframework.com 1is Head of Research at The Customer Framework. He is author or co-author of many articles and 30 books on customer management. The UK’s Chartered Institute of Marketing listed him in 2003 as one of the world’s top 50 marketing thinkers
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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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because the level of intimacy was based on unbalanced time-sharing and other reasons for not maintaining something that could stick and stay. What bothers me more is when their mannerisms change‚ they become incognito‚ and make themselves scarce once they feel that things are not conducive to their train of thought as opposed to seeing how the friendship can be saved for the long term. Yes‚ people have motives that they tend to hold close to vest and out of your sight. Now comes the time for me to
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Five key elements to develop your strength Being successful is not only having a degree in a specific career or having the perfect job. A successful man or women are those that have a purpose or a meaning in life. To develop a sense of purpose in life‚ people have to make decision and there’s when the problem begins. For students‚ it’s hard to make decisions when it’s about their futures. Being afraid of failing is one of the most common reasons that stop students from succeeding. “The
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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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There are many different methods of behavioral research. For the purpose of this assignment this paper will focus on answering the following questions; 1) What is a case study? 2) What are some reasons for using a case study approach? 3) What are the advantages and disadvantages of this approach? 4) Where‚ or in what ways‚ can a researcher acquire information/data that can be used for a case study? CASE STUDY What is a case study? Case study is one form of research. Case study research
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a. Traditional Budgeting Wildavsky (1978‚ p.502) mentions that "traditional budgeting is annual (repeated yearly) and incremental (departing marginally from the year before)". It is conducted on a cash basis in current dollar. It is also in the form of line-items such as personnel or maintenance. This system is essentially a financial plan of estimated expenditures expressed in terms of kinds and quantities of objects to be bought and the estimated funds needed to finance them during a specified
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