...following: * product standards that include: * dimensions * tolerances * pricing * material * delivery * policies and procedures for: * identifying customer needs that conform to the RATER model * responding to customer complaints * managing records and data. Planning the assessment * Recommended date for assessment: After Session 2. * Time required for assessment: 3 hours. * The candidate should submit: * a customer service plan; the plan must be submitted on A4 paper or in Word format if submitted electronically. * a one page reflection on design of customer service pla | Adjusting assessment for distance learning | This Assessment Task can be adjusted for distance learners. Recommended adjustments are provided below. Preparation: * email/send the Assessment Task to candidate * email/send any required support material to candidate * identify a timeframe to return the work and inform the candidate.Procedure: * no variation of task is required * a follow-up interview may be...
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...41. Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents. Their income from all sources this year (2009) totaled $200,000 and included a gain from the sale of their home, which they purchased a few years ago for $200,000 and sold this year for $250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,500 of itemized deductions. a. What is the Jackson’s taxable income? $111,600 realized income $200,000 minus excluded income $ 50,000 (gain from sale of house) gross income $150,000 minus for AGI deductions $ 0 Adjusted gross income $150,000 minus itemized deductions $ 16,500 (larger than standard deduction) subtotal $133,500 minus exemptions $ 21,900 (personal & dependency) Taxable income $111,600 b. What would their taxable income be if their itemized deductions totaled $6,000 instead of $16,500? $116,700 AGI $150,000 minus standard deduction $ 11,400 (married filing jointly) subtotal $138,600 minus exemptions $ 21,900 (personal & dependency) Taxable income $116,700 c. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions? $110,700 Gross income $150,000 minus for AGI deductions $ 6,000 AGI $144,000 minus standard deduction $ 11,400 subtotal $132,600 ...
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...Perbaikilahhingga data initidakterdapatmultikolinearitasdanberilahanalisisterhadaphasilperbaikan! HASIL REGERESI AWAL Dependent Variable: Y Method: Least Squares Date: 11/04/15 Time: 10:18 Sample: 1 10 Included observations: 10 Variable Coefficient Std. Error t-Statistic Prob. C -0.510609 0.586372 -0.870794 0.4127 X1 0.615492 0.553310 1.112381 0.3027 X2 -0.010709 0.025091 -0.426797 0.6823 R-squared 0.889524 Mean dependent var 0.965000 Adjusted R-squared 0.857960 S.D. dependent var 0.344843 S.E. of regression 0.129965 Akaike info criterion -0.999777 Sum squared resid 0.118236 Schwarz criterion -0.909001 Log likelihood 7.998883 Hannan-Quinn criter. -1.099357 F-statistic 28.18121 Durbin-Watson stat 2.809126 Prob(F-statistic) 0.000448 HASIL REGERESI FIRST DIFFERENCE Dependent Variable: DY Method: Least Squares Date: 11/04/15 Time: 10:27 Sample (adjusted): 2 10 Included observations: 9 after adjustments Variable Coefficient Std. Error t-Statistic Prob. C 0.147647 0.220477 0.669669 0.5280 DX1...
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...amount of customer purchases after all applicable discounts are applied and before tax is imposed. Eligible customer purchases include sale-, regular- and clearance-priced merchandise, but exclude the purchase of Gift Cards. Offer can be redeemed with any other offer, but cannot be redeemed for cash. Kohl's Cash® will be applied prior to percent-off total purchase discounts. Kohl's Cash® Coupon may not be redeemed (1) on purchases of Kohl's Cares® cause merchandise or other charitable items; (2) to reduce customer's Kohl's Charge or any third party charge account balance; (3) as price adjustments on prior purchases; or (4) to purchase gift cards. If merchandise purchased earning a Kohl's Cash® Coupon is subsequently returned or price adjusted, the value of the Kohl's Cash® Coupon previously earned and/or the amount of the merchandise refund will be reduced to reflect any unearned value. Return value of merchandise purchased with a Kohl's Cash® Coupon may be subject to adjustment. Offer is nontransferable. Redemption Instructions for POS Associate: Scan barcode. When prompted, print the coupon's new value on the...
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...come to the conclusion that it would be in the best interests of the company to go international. There are 3 important reasons why we have come to this conclusion: Greater Net Present Value When comparing the Net Present Values between the unadjusted Status Quo and the Priller (International) options, we can see that the Priller option’s NPV is only 1.68% greater than the Status Quo option. However, this is only true for an optimistic result. By comparing the Priller NPV between the adjusted Status Quo and the Priller options, we can see that the Priller option’s NPV is significantly greater by 37.35%[1]. ♦ By taking an arithmetic average between the unadjusted and adjusted Status Quo, we could expect the Priller option’s NPV to still be 19.72% greater than the domestic option. ♦ This NPV calculation assumes the annual volume expectations of 300,000 are correct. ♦ The Priller option’s IRR (72.59%) surpasses the Internal Hurdle Rate of 12%. Greater Terminal Value The Priller option’s Terminal value is 51.56% greater than the unadjusted Status Quo and 80.62% greater the adjusted Status Quo[2]. ♦ Business is worth more on 10th period when it expands its international operations. ♦ This shows that the present value of the company is higher when they expand their international operations. Opportunity to increase Market Share In 2009, global sulfur production and demand was about 20 million tons. Of...
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...Monster computer corporation | September 3, 2006 Monster computer corporation | September 3, 2006 pathrite systems analysis Frances Wu, Inola zeng, JIAN QIN, mOHAMODE zATMAH pathrite systems analysis Frances Wu, Inola zeng, JIAN QIN, mOHAMODE zATMAH It is recommended that EIS purchase the Pathrite System, since the expected value of the net present value of the project is positive, no matter we consider the CCA rate or not. 1. Weighted Average Cost of Capital calculation and analysis The overall method used to calculate the expected value of the net present value of the project is to first calculate the real weighted average cost of capital of the firm, use the WACC to discount the operating cash flows adjusted for inflation and earned in the next 6 years, add the tax shield given by the depreciation minus the initial investment (since the case doesn’t any CCA rate, we calculate tax shield both with the CCA rate 45% which is checked through internet and without the CCA rate), minus the initial investment 9,000,000, for each scenario (the original operating cash flow 2.5 million, 30% higher and 15% lower). First, the nominal weighted average cost of capital is calculated (10.691%) Using the formula: WACC=WD*Rd*(1-T) +we*Re There are two parts that make up the firm’s capital, bond and common equity. There are two methods used to calculate the return on bond the first by estimating the required return of the bond by the price it was sold at...
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...machine, which originally cost $40,000, has 6 years of expected life remaining and a current book value of $30,000 versus a current market value of $24,000. Target's corporate tax rate is 40 percent. If Target sells the old machine at market value, what is the initial after-tax outlay for the new printing machine? a. -$22,180 b. -$30,000 c. -$33,600 d. -$36,000 e. -$40,000 Risk-adjusted discount rate Answer: c Diff: E [ii]. Dandy Product's overall weighted average required rate of return is 10 percent. Its yogurt division is riskier than average, its fresh produce division has average risk, and its institutional foods division has below-average risk. Dandy adjusts for both divisional and project risk by adding or subtracting 2 percentage points. Thus, the maximum adjustment is 4 percentage points. What is the risk-adjusted required rate of return for a low-risk project in the yogurt division? a. 6% b. 8% c. 10% d. 12% e. 14% Medium: [MACRS table required] New project NPV Answer: d Diff: M [iii]. Mars Inc. is considering the purchase of a new machine which will reduce manufacturing costs by $5,000 annually. Mars will use the MACRS accelerated method to depreciate the machine, and it expects to sell the machine at the end of its 5-year operating life for $10,000. The firm expects to be able to reduce net operating working capital by $15,000 when...
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... khalsa, iper pgdm 1 Nature of Risk Ç Risk exists because of the inability of the decision-maker to make perfect forecasts. Ç In formal terms, the risk associated with an investment may be defined as the variability that is likely to occur in the future returns from the investment. Ç Three broad categories of the events influencing the investment forecasts: 4 General economic conditions 4 Industry factors 4 Company factors 2 prof a s khalsa, iper pgdm Techniques for Risk Analysis Ç Statistical Techniques for Risk Analysis 4 Probability 4 Variance or Standard Deviation 4 Coefficient of Variation Ç Conventional Techniques of Risk Analysis 4 Payback 4 Risk-adjusted discount rate 4 Certainty equivalent 3 prof a s khalsa, iper pgdm Probability Ç A typical forecast is single figure for a period. This is referred to as “best estimate” or “most likely” forecast: 4 Firstly, we do not know the chances of this figure actually occurring, i.e., the uncertainty surrounding this figure. 4 Secondly, the meaning of best estimates or most likely is not very clear. It is not known whether it is mean, median or mode. Ç For these reasons, a forecaster should not give just one estimate, but a range of associated probability–a probability distribution. 4 prof a s khalsa, iper pgdm Assigning Probability Ç The probability estimate, which...
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...Question 1: Consider the arguments of John McPhee and Tony Hughes regarding how the risk of these two projects should be measured and incorporated into the investment evaluation process. Are both of them technically correct in the methods they suggest to account for project risk, and which method of risk-adjustment do you think should be applied in evaluating the feasibility of these two projects? As defined by Mira and Dunja, 2005, risk can be determined as knowing future event probability, and uncertainty as unknown probability of future events. Measured uncertainty is a risk. Term risk and uncertainty are often used as synonyms in economy because there is no possibility in economy of some event repetition in exactly the same circumstances. That means that it is hard to measure risk, and event’s probability is a highly subjective estimation. The term risk prevails in portfolio analysis whether in the sense of risk measure (e.g. beta is the risk measure) or in the sense of uncertainty. A project can be defined as an entity of inter-dependent activities, which is unique and has its purpose and objective. In this case study, we have two mutually exclusive investment projects. The first prospective investment involved a strip (open-cut) mining operation in western New South Wales. The second investment also involved the extraction of coal, but this expenditure would be an underground site in South-Eastern Victoria. Based on Mira and Dunja, 2005, project risk can be...
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...CASE 90: Northern Forest Products | Topic: Cost of Capital | Instructor: Dr. BILICI and Dr. Tran Phi Long | GROUP 11: Nguyễn Diệp An Hoàng Tiến Nhật Anh Phạm Nguyên Hạnh Đỗ Quang Huy Nguyễn Hoàng Long Nguyễn Phương Thủy Phạm Anh Thư Phan Thị Thu Trang Nguyễn Đức Trung Vũ Thị Minh Tú NOTHERN FOREST PRODUCT CASE STUDY Question 1: Explain the importance of risk adjustment in the capital budgeting allocation process by answering the following questions. a. Explain why risk adjustments are important and how they can affect firm value. Risk adjustment is of importance since evaluation of a project would not be appropriate if the hurdle rate is only based on the company risk. In determining the cost of capital for the project, risk must be accounted on the process of allocating capital and resources. The lack of risk adjustment in considering the proportion amount of capital invested in each project would result in the misallocation of resources. By adjusting the firm’s overall hurdle rate, the company can review the divisional risk before taking capital allocation and investment decision. Without risk adjustment, the firm’s stock value would be affected for taking in and allocating large proportion of resource in project with high risk which may result in loss. Besides, when the firm rejects acceptable project with low risk or allocate small amount of capital in the project, it may lose its competitiveness over other firms. To conclude, the improper risk...
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...geting1.0 INTRODUCTION Capital budgeting plays an important role in a firm’s financial management, the selection of a project is of great importance because it required a very large capital expenditure which will have a significant impact on the financial performance of the firm. Therefore a mistake in capital budgeting process by a firm will cost them a long period of time. Capital budgeting can be defined or seen as a designed process which involves management of available resources to select long time investments that will generate high return on the investment of those resources, Brealey, R. A et al (2006). Companies are into businesses with the main aim of making profit, therefore, it is vital for companies to know how to evaluate their expenditure. It is very important for a company to know the present value of the future investment and the time period it will take to mature before investing in a project. Examples of investment decision are purchase of new equipment or acquisition of industrial building. 2.0 ANALYSIS AND DECISION MAKING OF COVERED INTEREST ABITRAGE This can be described as an investment strategy which involves the buying of financial instrument dominated in a foreign currency by an investor and also the selling of a forward contract in his base currency in order to hedges his foreign exchange risk, Bodie, Z. and Kane, A. (2007). Based on the covered interest arbitrage i agree that there will be no difference if HW Technologies raise the capital...
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...project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project's returns are expected to be highly correlated with returns on the firm's other assets. The firm believes it could sell 1,000 units per year. The equipment would be depreciated over a 5-year period, using MACRS rates. The estimated market value of the equipment at the end of the project’s 4-year life is $500,000. Webmasters’ federal-plus-state tax rate is 40%. Its cost of capital is 10% for average-risk projects, defined as projects with a coefficient of variation of NPV between 0.8 and 1.2. Low-risk projects are evaluated with a WACC of 8%, and high-risk projects at 13%. a. Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback. Key Output: NPV = Part 1. Input Data (in thousands of dollars) IRR = MIRR = Equipment cost $10,000 Net WC/Sales 10% Market value...
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...Perpetuity: NPV= C1r Growing Perpetuity: NPV=C1r-g Annuity: NPV= C1r-C1r(1+r)t=C1(1+r)t-1r(1+r)t Growing Annuity: NPV= C1r-g-C1(1+g)t(r-g)(1+r)t Equivalent Annual Cash Flows: EAC=NPV(1+r)t-1r(1+r)t Stock Values: Div Yield=DivPrice Div=Payout Ratio*EPS Payout Ratio=DivEPS g= Plowback Ratio*ROE r=DivPrice-g Valuing Stocks: Stage 1. Current Dividends Estimation Stage 2. Firm-Specific Growth Rate Stage 3. Firm Long Term Growth Rate Stage 4. Constant Growth Rate, usually the growth Rate of the Economy. Value of non-listed Firm: Estimate cost of equity of the similar listed firms. Profitability Index=NPVInitial Investment Duration: Macaulay Duration (in how many years will the initial investment be repaid) DMAC= t=1Tt*Ct(1+r)tP0 Modified Duration (relative Change in Price) DMOD= 1(1+r)*t=1Tt*Ct(1+r)tP0 Change in price: DEUR=dP0dr=-1(1+r)*t=1Tt*C(1+r)t Duration of the Portfolio DPortfolioMAC= DBond1MAC*P0Bond1P0Portfolio+DBond2MAC*P0Bond2P0Portfolio * The higher Duration the more sensitive is the Bond to changes of interest rate Markowitz Portfolio theory: Expected Return: μ=1ni=1nri Variance: σ2=1(n-1)i=1n(ri-μ)2 Standard Error: Err=σn Covariance: σAB=1(n-1)i=1n(riA-μA)(riB-μB) Correlation coefficient: ρAB=σABσAσB Markowitz Portfolio Theory: σ2=a2σA2+b2σB2+2abσAB μ=arA+(1-a)rB Portfolio of identical Stocks: σPortfolio=1nσOne stock2+1-1nσBetween two stocks Sharpe ratio (Slope of the Capital Market Line): Sharpe Ratio=...
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...followed by an answer form. All questions for this week are multiple choice or true/false. Questions (2-21) are worth four points each. Question one is worth two points. Fill in the answer form with the letter choice of your answer and submit it as a word document or text document (.txt). [1] A firm should never accept a project if its acceptance would lead to an increase in the firm's cost of capital (its WACC). [A] True [B] False [2] Because "present value" refers to the value of cash flows that occur at different points in time, a series of present values of cash flows should not be summed to determine the value of a capital budgeting project. [A] True [B] False [3] A basic rule in capital budgeting is that if a project's NPV exceeds its IRR, then the project should be accepted. [A] True [B] False [4] The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of the cash inflows. [A] True [B] False [5] Other things held constant, an increase in the cost of capital will result in a decrease in a project's IRR. [A] True [B] False [6] A project’s IRR is...
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...CAPITAL BUDGETING DECISION 1. Meaning Capital budgeting denotes situation where funds are invested immediately and returns are expected after a year. In growing orgnisation capital budgeting is more or less continuous process and it is carried out by top management. The role of any Finance Manager is to critically evaluate proposal, evaluation of alternative proposal and select best one. The following are the some of the cases where heavy capital investment may be necessary. A) Replacement of fixed assets: - To replace old Assets. To buy Asset with latest technology. B) Expansion: - It means increase in production capacity to meet additional demand. C) Research and Development: - It is required for those industry where technology in changing rapidly. D) Diversification: - To set up factories, to fulfill need of various markets. To reduce dependency on one market E) Miscellaneous: - To meet legal norms, such as investment in pollution control equipment. 2. Features and significance of capital budgeting Capital budgeting includes investment for long firm funds for long term and their utilisation. Capital budgeting decision affects profitability of firm. Therefore these decisions are very important. A wrong decision taken by finance manager may affect firm’s profitability. The relevance and significance of capital budgeting may be stated as follows. A) Involvement of heavy funds: - Capital budgeting decision requires large amount of capital...
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