Net Present Value and Project - 3264 Words

UNIVERSITY OF LA VERNE La Verne, California Tesca Case A Paper Submitted in Partial Fulfillment of the Requirements for BUS 635 CRN 1105 – Managing Financial Resources Nepal Plummer College of Business and Public Management Department of Management and Leadership March 3, 2014 TESCA CASE STUDY SUMMARY RESULTS AND RECOMMENDATIONS The proposed refrigerator manufacturing and sales project for Tesca Works, Inc. is a financially complicated project which on the surface, given the increase in energy costs and customer demand may seem like a winning proposition. However, when we delve further into the details of the financial projections along with projections of the†¦show more content†¦The price per kilowatt hour has increased almost 50% in 10 years (EIA, 2014). Thus to the consumer the price of energy is a big concern and the costs will most likely continue into the future. There is potential for an increased demand to replace aging inefficient appliances that are causing increased electrical bills for consumers. The energy cost and potential benefits to the consumer are of importance when determining the future of this project. The project is forecast to be of a positive value if the demand for refrigerators is at an average or strong demand from consumers. How ever, the realization of a high or average demand is mainly based on ‘gut-feeling’ rather than on sound financial information. There are too many variables in the marketplace that could cause demand to be weaker than projected. Such variables as a weak economy or recession could cause sales to drop which in turn would cause the project to lose its value quickly. 2) What is the project’s cost of equity? What is the appropriate discount factor to use for evaluating the refrigerator project? As seen in Exhibit I below, the project’s cost of equity (COE) is calculated to be 13.487%. We found this value by using the Capital Asset Pricing Model (CAPM) formula by adding the treasury note yield with the beta value, then taking the market return rate and subtracting the treasury note yield. We then multiply those values together to attain the cost of equity value of 13.487%. This meansShow MoreRelatedNet Present Value and Software Project Management1643 Words   |  7 PagesSOFTWARE PROJECT MANAGEMENT TUTORIAL LETTER 201 FOR INF3708 SOLUTIONS Solutions (Highlighted) - Assignment 01 – Semester 1 ASSIGNMENT 01 - COMPULSORY Study material Total marks Hughes Cotterell: Chapters 1 – 4 25 marks = 100% UNIQUE NUMBER: 203647 1. A 1. 2. 3. 4. 5. is said to be â€Å"A specific plan or design† or â€Å"A planned undertaking† System Scope Project Software Management -2- INF3708/201 2. Software Project Management scope normally comprises the following: a. Project FeasibilityRead MoreNet Present Value Calculation for PowerCo Project490 Words   |  2 PagesIntroduction The purpose of this analysis is to make a determination about a project that the PowerCo is considering. The project runs for twelve years. The discount rate is 8%. There are costs for the first two years and then there are net positive cash flows for the subsequent ten years. A net present value calculation will be used in order to determine if the company should undertake this project or not. The present value calculations will be done according to this formula: INCLUDEPICTURE http://iRead MoreThe Caledonia Project: An Analysis of Net Present Value Calculation494 Words   |  2 PagesThe project will be analyzed with a net present value calculation. The future cash flows will be calculated and then discounted to present day, then tabulated so that the net present value of the project is determined. This NPV will allow management to make a decision with respect to whether or not the project should be undertaken or not. Caledonia should focus on free cash flows for the project rather than accounting profit. The reason for this is that the free cash flows are the actual valueRead MoreNet present value (NPV), payback period (PBP) and internal rate of return (IRR) approaches for a project evaluation2931 Words   |  12 PagesAbstract This essay will discuss the net present value (NPV), payback period (PBP) and internal rate of return (IRR) approaches for a project evaluation. It is often said that NPV is the best approach investment appraisal, which I why I will compare the strengths and weaknesses of NPV as well as the two others to se if the statement is actually true. Introduction To start of, the essay will attempt to explain the theoretical rationale of the net present value approach to investment appraisal asRead MoreDiscuss Net Present Value (NPV) Payback has certain advantages, but disadvantages for long term project appraisal. Discuss.1285 Words   |  6 PagesINVESTMENT APPRAISAL Characteristically, a decision to invest in a capital project involves a largely irreversible commitment of resources that is generally subject to a significant degree of risk. Such decisions have far-reaching effects on a companys profitability and flexibility over the long term, thus requiring that they be part of a carefully developed strategy that is based on reliable appraisal and forecasting procedures. In order to handle these decisions, firms have to make an assessmentRead MoreCash Flow Per Period Of A Project790 Words   |  4 Pagesof a project depends on whether the cash flow per period of the project is even or uneven. In case they are even, the formula to calculate payback period is: Payback Period = Initial Investment Cash Inflow per Period When cash inflows are uneven, we need to calculate the cumulative net cash flow for each period and then use the following formula for payback period: Payback Period = A + B C In the above formula, A is the last period with a negative cumulative cash flow; B is the absolute value of cumulativeRead MoreAssignment 3-Capital Budgeting Analysis1724 Words   |  7 Pagesprocess chooses capital projects from a number of potential options based on several factors such as payback periods, internal rate of return, and the net present value for each project. Each factor should work together effectively to ensure the greatest return in the least a mount of time. This paper will focus on determining the best financial outcome for a capital budget using these methods and calculations. To gain an understanding of the capital budget process, Project A and B will be analyzedRead MoreCaladonia Products Integrative Problem1382 Words   |  6 Pagesgive the assistant any large responsibilities without supervision. The CEO has tasked the assistant with both the calculation of the cash flows associated with a new investment under consideration and the evaluation of several mutually exclusive projects (Keown, Martin, Perry, Scott, 2005). The lack of experience on the assistants part has also lead to the CEO requesting not only that the assistant provide a recommendation but also to respond to a number of questions aimed at judging the assistantsRead MoreCase02 Piedmont1133 Words   |  5 Pagesyears. Using a discount rate of 8 percent, the net present value of all benefits is $1,732,836.16; the net present value of all costs is $1,64 0,384.79; the overall net present value is $92,451.36, and the project breaks even in approximately 3.84 years. Using a 10 percent discount rate, the net present value of all benefits is $1,645,201.46; the net present value of all costs is $1,576,173.19; the overall net present value is $69,028.27, and the project breaks even in approximately 4.04 years. UsingRead MoreCase759 Words   |  4 PagesDate: [ 2/22/2012 ] Re: Recommendation for Amstelveen Corporation’s project investment The purpose of this memo is to explain and recommend which projects Amstelveen Corporation should invest in based on capital budgeting calculations. First, I will explain if there are any contradictory recommendations and then I will give the recommended total I suggest Amstelveen to raise. I will also give my recommendation on which project(s) the company should pursue if it remains limited to â‚ ¬8,000.000. Recommendation

Country Risk Analysis of Nigeria - 8877 Words

Executive Summary This project focuses on existing problems, importance of efficient the country risk of Nigeria. In this regard we have identified their culture, people, economy, investment, opportunity, some key problems like Corruption, bureaucracy, piracy, Counterfeit, Criminal activities and fraud, legal safeguards etc. This paper also intends to show the regulatory framework issue, micro economic and macroeconomic issue to give a detailed picture of the Nigerian business Risk. But there are also upside risks especially to inflation, which could create challenges for Nigeria given emerging constraints (infrastructure). Nigeria is still today a prosperous country, and although they have had their downfalls, they have had many†¦show more content†¦And the damages it has done to the polity are astronomical. The menace of corruption leads to slow movement of files in offices, police extortion tollgates and slow traffics on the highways, port congestion, queues at passport offices and gas stations, ghost workers syndrome, election irregularities, among others. Corruption is one of the most common problem in everywhere in the world. Some where its acceptable and some where it crosses the boundary. In Nigeria, researchers indicate that the following sectors are among those most affected by corruption: * Police and law enforcement * Judiciary and legal profession * Power sector * Tax and customs * Health and education * Land administration * Public Procurement which seems to be a major concern across most sectors Here we are discussing about the corruption in Nigeria. There are some major points that show how much corrupted Nigeria is. These are location, accounting standards, anti-corruption policy credibility and enforceability, cultural difference, political leadership, political change and at home. Location This is because if it pays bribe in a particular country then it has to pay bribe in the neighboring country. Nigeria is a bribe accepting nation. Any company or multinational company cannot start their businesses without bribe. Now if any company started their business in a country where bribe is mandatory then for example other bribe accepted nation also argues forShow MoreRelatedStrategic Decision Making For Nigerian Companies763 Words   |  4 Pagescomes to strategic decision making for Nigerian companies over the next five years. (PwC Nigeria – 2016 Report) I wish to use this medium to concentrate mostly on the incentives that stimulates me to pursue further studying and reflect the motives for my choice of an institute, scholarship as well as state my future career objectives. I have chosen to work in the area of Quantitative Economics, Data Analytics Risk Assurance, because it has such a demand for new ideas and perspectives. At the same timeRead MoreHygeia International Case Analysis1470 Words   |  6 Pagesneeded for the company to be ready in venturing into poultry production in Nigeria in four weeks time * To analyze risks involved in poultry production in Nigeria in four weeks time * To determine historical data of sales growth within the past five years to project return of investment in the next five years Areas of Consideration: INTERNAL 1. Marketing Hygeia International is already well established in Nigeria. However, marketing channels are poorly developed. Tv and radio still haveRead MoreSWOT Analysis of Shell in Nigeria1364 Words   |  5 Pagesoperating in more than 140 countries and territories. The Royal Dutch/Shell Group, commonly know as Shell, is an amalgam of over 1,700 companies all over the world. 60% of the Group is owned by Royal Dutch of the Netherlands, and 40% is owned by the Shell Transport and Trading Group of Great Britain. These two companies have worked together since 1903. Shell includes companies like Shell Petroleum of the USA (which wholly owns Shell Oil of the USA and many subsidiaries), Shell Nigeria, Shell Argentina,Read MoreEssay On Global Health Development1084 Words   |  5 Pagesthrough the Lens of Nigeria Nigeria is a lower-middle-income country located in western Africa. Nigeria is one of the fastest growing populations in the world today, growing at a rate of 3.2 percent annually (United States Agency for International Development, 2017). The combination of low income and large population introduces many developmental challenges that Nigeria must overcome in order to decrease individual health risk and increase quality of life. The development of Nigeria is not just effectedRead MoreKellog Brown Root in Nigeria Corruption Case1160 Words   |  5 PagesKellogg Brown Root in Nigeria Corruption Case The firm Halliburton acquired Dresser Industries in the year of 1998. Among Dresser’s businesses was M. W. Kellog, which was combined with an existing Halliburton business and renamed Kellog Brown and Root. By that time, Kellog was expecting to build a series of liquefied natural gas in Nigeria, but in order to do that it was required to win an initial contract form the Nigerian Government. At the beginning everything was going according to plans,Read MoreInterest Rate And Interest Rates1402 Words   |  6 PagesInterest rate aids the mobilization of funds from surplus spending units to deficit spending units of the economy for efficient utilization of such funds for the enhancement and growth of agriculture (Godslove 2016). The Central Bank of Nigeria left its benchmark interest rate unchanged at 14 percent at its September 2016 meeting, as expected. It follows a 200bps(basic point) hike in September 2016 meeting aiming to control the inflation and support the naira after the Central bank abandonedRead MoreTuberculosis Is The Most Common Opportunistic Infection And Cause Of Death Among People Living With Human Immunodeficiency Virus1685 Words   |  7 Pagessupport network and the society at large. According to Siika,Yiannoutsos, Wools-Kaloustian, Musick, Mwangi, Diero Carter (2013), TB accounts for about 26% of all HIV/AIDS-related deaths with more than 90% of the deaths occurring in developing countries, mostly in Sub-Saharan Africa. HIV-TB co-infected patients have been shown to have worse treatment outcomes (high mortality, Defaulter, Failure, etc.) than when treating TB alone. WHO has worked to provide a national programs and stake holders withRead MoreIntellectual Capital And Co rporate Performance In Nigeria1690 Words   |  7 PagesINTELLECTUAL CAPITAL AND CORPORATE PERFORMANCE IN NIGERIA BANKS Dr.Egungwu, Ikenna Banking Finance Department, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria E-mail: ikennaegungwu@yahoo.com Egungwu, Ngozi Ursula Accountancy Department, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria E-mail: ngoziegungwu@yahoo.com Abstract This study is on the interaction between corporate performance variables and Intellectual capitalRead MoreEvaluating The Geographical Targeting Should Adopt For The Nfm Application766 Words   |  4 Pagesthe following was conducted: †¢ Gap analysis based on epidemiological and program data with particular focus on treatment gaps †¢ TB high burden states and prioritization by the TB program using their ranking criteria †¢ PEPFAR priority states were considered alongside the TB and HIV priority states †¢ Adopted a cross-cutting national approach †¢ The country dialogue led to identification of national strategies, resource available, Technical Assistance needs, and country prioritized activities for TB/HIVRead MoreBasic Strategies Multinational and Participation Strategies1082 Words   |  5 Pagesstrategies And how to craft strategies Industry analysis SWOT analysis Situation with diversified companies Objectives The global-local dilemma Some of the broad multinational strategies Multidomestic Transnational International Regional Participation strategies – how should one enter a market Multinational Strategies and the Global Local Dilemma The local responsiveness solution Customize organizations and products to country or regional differences The global integration

My Last Duchess Practice Commentary Free Essays

We know that it is from a first errors perspective as personal pronouns are used and we know that the narrator is Nell because she comes in other stories from the same anthology such as With Art of Cooking and Serving’. The first paragraph starts with the first line from the poem and introduces the character Of Miss Bessie. The line from the poem creates a literary allusion and shows how the poem by Browning is connected to this story. We will write a custom essay sample on My Last Duchess Practice Commentary or any similar topic only for you Order Now It is clear that Miss Bessie is a teacher in this story addressing a class of high school students. The nouns â€Å"Gorilla, Scrip, Hippo† are used for other teachers. This name calling is comical but also shows how Miss Bessie is different from the other teachers as she has a comparatively more respectful name among her students. There is a use of colon before listing the names and Miss Besides dialogues are given in quotations. The paragraph ends with Miss Bessie asking a question to her class. The purpose of this paragraph is to introduce the character of Miss Bessie, briefly give the setting of the classroom and show how that poem by Browning is connected to the story. The second paragraph is a lot more secretive about the classroom and the setting outside the room. We get a lot of visual imagery of the sky outside which is described as a â€Å"hazy blue, a warm, drowsy color†. These words give the reader a sense of laziness and the relaxed atmosphere outside the classroom. Also the fact that the students â€Å"couldn’t see anything out of them[the windows] except the sky† suggests that classroom is confining. She then goes on to describe the sky in even more detail as â€Å"at the edge of eye sight, huge and featureless and soothing, rolling on and on like the sea†. Here the writer makes a simile between the sky and sea but the sky could also be a motif for Knell’s future after high school as she is about to graduate soon and doesn’t know what she wants to do, but her time is passing away just like the sky. We also get an auditory of other the some flies â€Å"buzzing† and â€Å"bumbling† in the classroom. This shows that Nell is distracted as she is paying attention to these tiny details instead of paying attention in class. She also says she â€Å"couldn’t risk turning [her] head† to see the flies which makes the action sound more dangerous than it should be. The paragraph ends with her saying â€Å"l was supposed to be thinking about last†. This takes Nell and the reader back to the class where Miss Bessie is discussing the poem. â€Å"Last† being the last sentence in the paragraph also gives a sense of ending to the reader. The purpose of this paragraph is to contrast the confined setting inside the classroom with the freedom and space outside the classroom and also show a indirectly characterize Nell. The third paragraph starts with the word â€Å"last† repeated which says that Nell is really thinking about the poem. We also get an insight into what Nell thinks a duchess is like when she describes it as an â€Å"instituting rustle, a whispering: taffeta brushing over a floor†. Such an auditory and visual imagery gives the reader a sense of royalty and luxury. She then goes on to describe the sleepy atmosphere in the classroom saying â€Å"it was hard to resist dozing off, drifting down into reverie or half sleep† and this contrasts with the lively atmosphere outside the classroom as â€Å"the trees outside were flowering’ and â€Å"pollen was eddying everywhere†. She says this is during the month of May which gives us he wider setting and the season which is spring here. Words such as â€Å"classroom†, â€Å"metal framed desks† give us a sense of confinement. It mullein’s thoughts and views are confined by what she is being taught in the class. The classroom with â€Å"the vibration of it’s newness† is juxtaposed with â€Å"the old smell in the room† given off by the adolescents in there. This shows how even though something may change over time, others remain unchanged. This gives a sense of timelessness. We also get some unpleasant olfactory imagery when she describes the old smell as â€Å"fermenting’, â€Å"LIFO’, â€Å"salty†. The fourth paragraph starts with the word â€Å"last† just like the previous paragraph. This creates parallelism with the previous paragraph which also started with the same word. It shows how Nell diverged from the topic for a bit and is again thinking about it. She creates a simile between the number of duchesses and a chorus line to help us visualize how many duchesses there might have been before. The words â€Å"gone, over with, left behind† create negative diction to imply that something terrible might have happened to the duchess. In terms f structure this is a short paragraph compared to others so far and gives a sense of abruptness. The purpose of these first four paragraphs of the short story is to introduce two of the main characters, the protagonist Nell and her English teacher Miss Bessie, give the audience the setting and show how the poem in discussion is an important part of the story. The audience for this short story is adolescents in high school as the protagonist herself is a teenager and is going through an important transition in her life that the adolescents can relate to. How to cite My Last Duchess Practice Commentary, Papers