Exercises due Oct 1 The classic transportation problem. You as an employee of the Department of Homeland Security (DHS) are in charge of maintaining the readiness of emergency supplies at various distribution sites within a region that may be subjected to natural or human caused disasters. These supplies come from manufacturers located at other sites within a larger region. These supplies need replacing periodically, whether used or not. The problem you face each month is to determine how much of
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M&A proposals, stock repurchase decisions. Some of these analyses were performed at the division or business unit level, while others were at the firm wide level. A too high estimate of the cost of capital may lead to an under-estimate of the present value of return in the project. So it might result in under-estimate of the NPV of the whole project. On the contrary, a too low estimate of the cost of capital would result in an over-estimate of the NPV. Both over-estimate and under-estimate would
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4 main techniques available ranging from simple to moderately complex MULTIPLE APPRAISAL METHODS: Non‐discounted cash flow techniques: 1. Payback period (PBP) 2. Accounting rate of return (ARR/ROCE/ROI) Discounted cash flow techniques(DCF): 3. Net Present Value (NPV) 4. Internal Rate of Return (IRR) 6 1 MBA7001 Accounting for Decision-Makers Week 6 Lecture – Capital Investment Appraisal Objectives (1)
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1. | Question: | (TCO 1) The money markets deal with | | Your Answer: | | | short-term securities | | CORRECT | | | securities with a life of more than one year | | | | | securities such as common stock | | | | | none of the above | | | | | Instructor Explanation: | Chapter 1, Page 15 | | Points Received: | 2 of 2 | 2. | Question: | (TCO 1) One major disadvantage of the sole proprietorship is | | Your Answer:
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Question 1 The primary objective of a for-profit firm is to ___________. Selected Answer: Correct Answer: 5 out of 5 points maximize shareholder value maximize shareholder value Question 2 5 out of 5 points The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? Selected Answer: Correct Answer: innovation theory of profit innovation theory
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GUIDE ON VALUATION OF TECHNOLOGY Guide on Valuation of Technology TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 1.2 1.3 1.4 DEFINITION OF TECHNOLOGY ROLE OF TECHNOLOGY OPEN INNOVATION STRATEGIC ALLIANCES 3 3 3 3 4 2.0 VALUATION OF TECHNOLOGY 5 3.0 VALUATION METHODS 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 TWENTY-FIVE PERCENT (25%) RULE INCOME TECHNIQUE MARKET APPROACH COST METHOD RELIEF FROM ROYALTY TECHNOLOGY FACTOR APPROACH CAPITALIZATION APPROACH REAL OPTIONS METHOD 5 6 6 7 7
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interpretation, there are only 3 options provided, and each can be run as a sensitivity analysis. For determining a value of a perpetual project (often via a terminal value), leaving the growth rate to be used open to interpretation can present challenges. Especially as these projects often tend to be dependent on or impact other projects. Evaluating them compared to other projects without a terminal value may result may be impossible. At the very least, a defined ranking of tools (for example: NPV, then IRR
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Table of Content Question 1 ……………….…………………………………………….. 5 Introduction …………….………………………………………….. 5 Pest Analysis table ….…………………………………………..…. 5 Factors of PEST………………..…………………………...……… 7 Table of Factors ………………………………….………………… 10 SWOT Analysis………………………………….…………………. 11 Conclusion …………………………………………………………. 12 Reference …………………………………………………………... 13 Question 2 (a) ……………….……………………………………….. 14 Introduction …………….………………………………………….. 14
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FFinance: principles of Finance (part 1) Financial markets and management Valuation of investment Value of investment = value of investment’s cash flows * Concept of present value: value of investment = PV(CF°, CF1, CF2…) Important characteristics of cash flows: * Time: for the same amount of money, now is preferred to tomorrow * Uncertainty: risk and return (1 for sure is preferred to half a chance to get 2) Opportunity cost of capital: Definition: opportunity cost of capital
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States. Another of its strength is its ability to anticipate the demands of the customers and its ability to provide high-quality and innovative products which in return make their customers become loyal of availing all their services and products. Table 1 SWOT Analysis of Target Corp. Strengths Strong brand awareness and recognition Employee retention Design and innovation Opportunities Global expansion Focus on private label products Advised Future Strategy The threat faced by all these market players
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