------------------------------------------------- Table of Contents Section | Title | Subsection | Title | Page Number | 1.0 | Executive summary | | | 3 | 2.0 | Sales Forecast | | | 3 | | | 2.1 | Sales Forecast | 3 | | | 2.2 | Methods and Assumptions | 3 | 3.0 | Capital Expenditure Budget | | | 4 | 4.0 | Investment Analysis | | | 4 | | | 4.1 | Cash flows | 4 | | | 4.2 | NPV Analysis | 4-5 | | | 4.3 | Rate of Return Calculations | 5 | | | 4.4 | Payback Period Calculations | 6 | 5.0 | Pro Forma
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2013 NAME____Angela Henkemeyer_________________ CHAPTER 9 QUIZ Week of October 20, 2013 1. Projects that are calculated as having negative NPVs should be: A. depreciated over a longer time period. B. charged less in overhead costs. C. discounted using lower rates. D. rejected or abandoned. 2. The value of a proposed capital budgeting project depends on the: A. total cash flows produced. B. incremental cash flows produced. C. accounting profits produced. D
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Name: __Rachelle Dillingham__________ Section: ___FINA301-Q1WW__________ FINA 301 Capital Budgeting Exercise Points: 45 Capital Budgeting Exercise 1 You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $500 initially, and then $150 per year in maintenance costs. Machine B costs $650 initially, has a life of three years, and requires $100 in annual maintenance costs. Either machine must be replaced at the end
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thorough analysis was certainly necessary. General Recommendation We have conducted our own analysis of Ocean Carriers and we have determined that the company should have terminated the negotiation with the charterer and avoid involvement in the project. Problem Confronting Ocean Carriers The major dilemma facing Ocean Carriers in 2001 was whether or not they should commission a brand new 180,000 deadweight ton ship for delivery in early
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Executive summary In this report, we will discuss about the capital budgeting of CapitaLand, one of the largest real estate companies in Asia. Business activities and financial background of CapitaLand will be mentioned in this report, also with the evaluation of two potential mutually exclusive capital investments as well as the objective of these investments for this company. This report also contents the analysis of four main different capital budgeting techniques used in the investments for supporting
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investments? A. working capital management B. financial allocation C. agency cost analysis D. capital budgeting E. capital structure 2. Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A. working capital management B. cash management C. cost analysis D. capital budgeting E. capital structure 3. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A. working capital B. debt C. investment
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1. IRR % IRR= 22.38% 2. NPV NPV= $3,450,866.74 3. Should the company accept this project and why? I believe the company should look into this. The IRR is greater than the Required Rate of Return and the overall NPV is a gain. There does not appear to be a loss in this asset. 4. Explain how depreciation will affect the present value of the project. Depreciation would cause the project's PV to go up. This would be a good thing when considering the
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calculations. Save the file when you are finished, then submit the exam on the course website just as you would a normal homework assignment. Question 1: (Cost of Capital) 8 points Pine Tree Farms Corporation (PTFC) has a target capital structure of 20% debt, 10% preferred stock, and 70% common equity. Currently PTFC has a capital structure of 70% debt, 10% preferred stock, and 80% common stock. The after tax cost of debt is 4.5%. The preferred stock has a par value of $100 per share, a $5
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Promotion would be most effective for getting the customers to buy a product. • It helps in changing the behavior of the consumers. • To improve performance of the organization. • To achieve the organizational objectives 2. Price A value that will purchase a definite quantity, weight, or other measure of a good or service is called Price. As the consideration given in the exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract,
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2013 Project on “Working Capital” Sumit Singh Registration No:-016-1121-0250-10 Roll No: - 301-0063 B-com (Honours), 3rd year Syma Prasad College 1 [Type the author name] 1/1/2013 DECLARATION I am Sumit Singh Student of SYMA PRASAD COLLEGE Of B-com( Honours) 3rd Year hereby declare that the project report entitled Working Capital the outcome of my own work and the same has not been submitted to any University / Institute for the award of any degree. Sumit Singh Registration No:-016-1121-0250-10
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