Atlantic Aquaculture

What are the amounts and timing of the follow-up expansion investment opportunity’s free cash flow from 2013 through 2022?

risks and determine the likelihood and consequence of that risk occurring during the project. The

2. Net Present Value – Secondly, Peter needs to investigate the Net Present Value (NPV) of each project scenario, i.e. job type, gross margin, and # new diamonds drills purchased. The NPV will measure the variance of the present value of cash outflow (drilling equipment investment) versus the future value of cash inflows (future profits), at the benchmark hurdle rate of 20%. A positive NPV associated with the investment means that the investment should be undertaken as it exceeds the minimum rate of return. A higher NPV determines which project scenario will have the highest return on cash flow, hence determining the most profitable investment in terms of present money value.

3. Estimate the project’s NPV. Would you recommend that Tucker Hansson proceed with the investment?

Evaluating the risks, calculating the probability of success, and factoring in the projected profit from sales will provide a clearer NPV to be compared with other projects in the

Problem 1: Jonathon Barrs is a manager for Easy Manufacturing, LLC. He wishes to evaluate three possible investments. These investments are for the purchase of new machine tools from Germany, Japan, and a local US manufacturer. The firm earns 10% on its investments and they have a risk index of 5%. The chart below lays out the expected return and expected risks of the three projects.

Grappling with the potential purchase of Olive Hill Farm, we decided to conduct a financial analysis to determine whether the project should be taken or not. Our financial analysis include scenarios for the best, worse, and most likely outcomes of purchasing the farm. For each scenario a Net Present Worth (NPW) and an Internal Rate of Return (IRR) was calculated and compared. This revealed that there was little gain for the worst case scenario and large gains for the other two scenarios. A sensitivity analysis and a break-even analysis was also conducted. The sensitivity analysis identified the most influential factors on the NPW. In the end, the analysis favored buying Olive Hill Farm because it would be a low risk, high reward investment.

Because the two projects are significantly different in size, the coefficient of variation (a relative measure of risk) is more

Question Number One (1) Value the processing plant proposal. Ignore the Industrial Revenue Bond financing. Assume: Market Risk Premium 8.8%, Riskless Rate 11.41%, and Harris Long Term Debt Rate 13.5%.

Furthermore, a sensitivity analysis of factors such as the cost of raw materials, selling price per unit and capacity utilization demonstrates that a small change in any one of these variables could have a major impact on the project’s bottom line. In Appendix B, I examine a scenario in which the selling price per unit decreases by 1% and the cost of raw materials per unit increases by 1% at the outset of the project. In this scenario, the resulting NPV changes from a positive $5.4 million to a loss of $666,000, and the IRR falls below the discount rate to 9.15%. This, to me, reveals that the potential upside of this project is not large enough to account for discrepancies due to imprecise projections, flawed assumptions, or unforeseen risks.

Pacific salmon are a major driver in Washington’s economy. Although the wild salmon population has increased slightly since the legislation passed by Washington in 2011 regarding the restoration of Pacific salmon, I believe a major issue still lies ahead regarding salmon aquaculture. Salmon aquaculture, or salmon farming, refers to the manufacturing of salmon from egg by using open net systems in oceans. With the current National Oceanic and Atmospheric Administration (NOAA) declaring the United States marine aquaculture industry to be valued at over $1.2 billion, the industry of farmed seafood will never be diminished fully. As this national empire increases, it is crucial that government set regulations for the impact that the aquaculture

I can certainly understand the struggles that you have. I have to take of a resident who has lactose allergy and we have to make sure that she does not received dairy products. Our aquaculture industry has been farming fish in lieu of its wild counterpart for people’s consumption. We can buy farmed tilapia or haddock in one’s local grocery store. Salmon, especially coming from Washington and Alaska, are labeled wild to distinguished from the farmed counterparts (Grossman, 2016). The wild salmons have to migrate inland in order to spawn for the new generations. However, due to man-made dams and drought causing some rivers to disappear, some salmons could not find their birthplace anymore. The AquaBounty AquAdvantge salmon is the

In order to determine which of the two projects create more value, we must calculate NPV based on the assumptions relevant to the decision. The table below shows the NPV for the two product lines given discount rates of 7.7% (low risk), 8.4% (medium risk), and 9.0% (high risk). The Match My Doll Clothing line is currently rated as a medium risk project with 8.4% cost of capital. Given Emily’s knowledge of the industry we may be able to accept this; however, the firm should also consider whether children’s clothing lies within their core competencies and how different the market is from their current market for dolls. These factors

This report analyzes the case “Tree Values” to find an optimal way for Mr. Smith to manage his forestland and harvest the crop trees. The fundamental idea in this report is based on the concept of present value. A number of options are analyzed and the one with highest present value of pay off is considered.

Overall, the ranking lists shown that the project of Strategic Acquisition should be accept by the board directors, because it has a highest IRR and NPV, the second high Profitability Index and 5 years payback, although the initial investment is really big but still the return is worse to do. The total investment of this project will be EUR55 million. The second recommend project will be the project of Southward Expansion. This project has a high IRR and NPV, the initial investment is EUR30 million, it is the 3rd in the ranking list of Project Spending and it is the 2nd in the ranking list of Project Net Cash Flow about EUR56.25 million, The payback is 5 years too. Because the project of Effuent-Water Treatment at Four Plants is highly recommend so right now we have total capital budget EUR91 million. Based on all the ranking list, the project of the Artificial Sweetener will be the last recommendation for the new year capital budget. This project has the 3rd highest IRR and NPV, the return is the 4th in the list about EUR42.75 million and payback is also 5 years. They expenditure for this project is EUR27 million. So the total budget will be EUR118 million include Strategic Acquisition, Southward Expansion, Artificial Sweetener and Effuent-Water Treatment at Four Plants.