46 Case Studies In Finance: Managing For Corporate Value Creation

Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.

Financial Management: “The process for and the analysis of making financial decisions in the business context.” (Cornett, Adair, & Nofsinger, 2016, p. 5).

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

The decision making of management is very crucial and involves various analysis to be performed. There are various ratios and methods that can be useful for mitigating the risks and increasing the expected returns with investments. The financial forecast is a mix of the behaviour,

Decrease an asset and increase another asset. Credits decrease an asset and increase another asset.

dropped stead by 10% for the past two days, which is known as erosion or

The world of finance is a competitive industry. With so much competition, it is important that individuals focus on networking with other leaders as well as developing their own companies. No one has done a better job of balancing these priorities that Brian Bonar. In fact, Bonar was recently recognized as the Who's Who Executive of the Year in Finance by Cambridge. This is a prestigious honor because only two men and two women are named executives of the year. The criteria for recognition are dependent on academic achievements, leadership abilities, and personal accomplishments. As the CEO of the Dalrada Financial Corporation, Brian Bonar has exceeded expectations.

| Attempt made to analyse a financial issue incorporating discipline knowledge and theory, but only minimal understanding of the issue is evident; Analysis addresses some aspects of the issue, but key elements are not

Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts.

We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.

1. Brigham, Eugene F. and Michael C. Ehrhardt. Financial Management Theory and Practice, 13th Edition, Thompson South-Western, ISBN-13# 978-14390-7809-9, ISBN-10#1-4390-7809-2

REFERENCES•Ross, S.A., Westerfield, R.W., Jaffe, J., Jordan, B.D. "Modern Financial Management". McGraw-Hill, Eighth Edition, (2008)•R.A. Brealey and S.C. Myers, "Principles of Corporate Finance", McGraw-Hill, Seventh Edition, (2003).

School of Business Administration, Portland State University, Portland, OR 97207-0751, Phone: (503) 725-3790, Email: danr@sba.pdx.edu

1. An international bank loaned money to an emerging country a few years ago. Because of the nonpayment of interest due on this loan, the bank is now negotiating with the borrower to exchange the loan for Brady bonds. The Brady bonds that would be issued would be either par bonds or discount bonds with the same time to maturity.

Ron and Judy Paige Faculty Fellow, 2002-2004; 1999-2001. A 2-year stipend for excellence in teaching, research, and service given by the University of Montana School of Business.