or to disseminate or sell the same without the prior written consent of the Professional Development Center of Latin America Global Finance and the Citibank Asia Pacific Banking Institute. Please sign your name in the space below. Table of Contents TABLE OF CONTENTS Introduction: Basics of Corporate Finance Course Overview........................................................................................xi Course Objectives ........................................................
Words: 86851 - Pages: 348
CASE 6 : SAP FOR ATLAM BACKGROUND OF THE COMPANY Company Name : Akademi Teknikal Laut Malaysia (ATLAM) Principal Activities : Education & Training Commenced Operation : 15th August 1981 Number of Employees :Approximately 200 employees Office : Melaka & Terengganu Main Problem : Asked to upgrade its accounting system with the PETRA group-wide SAP system which takes up a very high initial investment compared to ACCPA Introduction on SAP SAP is an Enterprise Resources Planning (ERP)
Words: 1929 - Pages: 8
wealth (2 M) Maximization of shareholders wealth means a) maximizing the firm’s value – achieving the highest possible value for the firm in the marketplace. (by making profits and avoiding losses. Economic Value Add (EVA) b) maximizing stock price - maximization of purchasing power, accumulating as much wealth as possible, by whatever means possible. 2. You are required to complete the gaps in the following table: (5M) Assets = Capital + Liabilities (current liabilities + long term
Words: 1904 - Pages: 8
should you purchase it? • b. What is the IRR of the asset? Exercício 2 • You just took a $10,000, five-year loan. • Payments at the end of each year are flat (equal in every year) at an interest rate of 15 percent. Calculate the appropriate loan table, showing the breakdown in each year between principal and interest. Exercício 3 • You are offered an investment with the following conditions: • The cost of the investment is $1,000. • The investment pays out a sum X at the end of the first year;
Words: 587 - Pages: 3
investment requirement, annual income and operating cost and financing cost of the project for the purpose of giving my recommendations. I am of the opinion that the project of manufacture of “The Transit Bus” will increase the overall net present value of the company and thusly recommend a “GO” for this project. Answer to the Questions: 1. Energy cost situation
Words: 1679 - Pages: 7
JCU Singapore Campus JCU-MBA-CF Lecture 5 (Ross Chapter 7) Capital Budgeting 1: Net present value and other investment criteria SOLUTIONS to Tutorial Questions: PRs 3. PAYBACK PERIOD A: 2000 – 1040 = 960; 960/1260 = 0.76 Payback = 1.76 years Payback period B: 2000 – 820 – 880 =300; 300/3800 = 0.08 Payback = 2.08 years Two-year payback required: Investment A would be accepted. It is not necessarily the best investment because payback ignores cash
Words: 518 - Pages: 3
a project selection exercise performed by the business enterprise. • Capital budgeting uses the concept of present value to select the projects. • Capital budgeting uses tools such as pay back period, net present value, internal rate of return, profitability index to select projects. Capital Budgeting Tools • • • • • Payback Period Accounting Rate of Return Net Present Value Internal Rate of Return Profitability Index Payback Period Payback period is the time duration required to
Words: 3214 - Pages: 13
Problems 1. Consumer-consumer rivalry best illustrates this situation. Here, Levi Strauss & Co. is a buyer competing against other bidders for the right to obtain the antique blue jeans. The maximum you would be willing to pay for this asset is the present value, which is 150, 000 150, 000 150, 000 150, 000 150, 000 PV = + + + + 2 3 4 (1 + 0.09 ) (1 + 0.09 ) (1 + 0.09 ) (1 + 0.09 ) (1 + 0.09 )5 = $583, 447.69. 3. a. Net benefits are N (Q ) = 50 + 20Q − 5Q 2 . b. Net benefits when Q = 1 are N (1) = 50 +
Words: 2176 - Pages: 9
Homework Assignment – Week 2 Chapter 3 1. Write down the formula that is used to calculate the yield to maturity on a 20-year 10% coupon bond with $1,000 face value that sells for $2,000. Assume yearly coupons. $2000 $100/(1 i) $100/(1 i)2 $100/(1 i)20 $1000/(1 i)20 2. If there is a decline in interest rates, which would you rather be holding, long-term bonds or short-term bonds? Why? Which type of bond has the greater interest-rate risk? You would rather be holding
Words: 3903 - Pages: 16
------------------------------------------------- Chapter 20 Decision Trees, Real Options, and Other Capital Budgeting Topics ------------------------------------------------- ANSWERS TO END-OF-CHAPTER QUESTIONS 20-1 a. Real options occur when managers can influence the size and risk of a project’s cash flows by taking different actions during the project’s life. They are referred to as real options because they deal with real as opposed to financial assets.
Words: 5210 - Pages: 21
