Memorandum To: Mr. Thomas Stearns, Project Manager, International Guidance and Controls From: Date: October 2, 2012 RE: Software Project for CARV Command and Guidance System _____________________________________________________________________ I have recently received and reviewed your memorandum regarding your issue with the Confined Aquatic Recovery Vehicle project. I have considered three options and their ability to save your company as much money as possible while completing this project in a timely manner. The three alternatives I considered were to immediately invest in hardware, to stay on your current path with the software developments only or to wait and reevaluate your situation in five months. Each of these …show more content…
Lastly, option number three (Attachment 2), to wait five months and continue with software developments and then reevaluate the progress of the situation, resulted in the lowest EMV of $3.29 million. For the third alternative, I have made sure to consider your estimates of the favorable and unfavorable progress possibilities that could affect the situation in five months. For each of the calculated EMV’s, I assumed that two months was the maximum amount of extra time needed if the software developments were not completed on time. As you stated in your memo, one or two months extra would suffice for the developments but there is always a chance that two months will not be enough time in which case the EMV would go up. I also assumed that your probabilities would prove to be accurate. Variations in the probabilities would also cause the EMV to change. Reputation Analysis: The EMV calculations previously discussed did not take into account the intangible cost of a damaged reputation in the event that the project is not completed on time. The costs cannot be certain because they have no concrete value but I have done my best to estimate the impact of a damaged reputation based on the EMV calculations stated above (Attachment 3). Continuing with your current software developments is immediately ruled out because the costs continue to go up and are the highest of the three
To make the most informed decision the IRRs and payback periods of the projects should be compared in conjunction with the NPVs of the two projects. The NPV analysis of the two projects under consideration indicates that the MMDC Project is the better of the two projects.
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.
3. Estimate the project’s NPV. Would you recommend that Tucker Hansson proceed with the investment?
In this assignment I am going to design a booklet explaining of how national initiatives promote anti-discriminatory practice. I am going to explain an assessment of the influences of a recent national policy initiative promoting anti-discriminatory practice in health and social care settings. Then I am going to evaluate the success of a recent initiative in promoting anti-discriminatory practice.
a) In the first set of calculations, the staff used a discount rate of 20%, a five-year time horizon, and ignored taxes and terminal value. What is the relative attractiveness of these three alternatives?
My interest for the Attorney Advisor position with the United States Patent & Trademark Office (USPTO) arises from my longstanding commitment to constantly improve myself. I have always enjoyed legal research, writing, and the complexities of intellectual property. I have no doubt that my enthusiasm to research, my eagerness to learn, and my strong ability to communicate clearly, work efficiently, accurately, and quickly, will make me an invaluable asset to the USPTO. I believe these traits combined with my unique skillset, developed as a result of experiences working for the Arizona Diamondbacks of Major League Baseball (Diamondbacks), Nike Inc. (Nike), and the Arizona Attorney General’s Office, Liability Management Department (AG Office)
Most young people believe that studying in a different country is a privilege because they are able to experience other cultures, and learn from them. However, in the United States it is not as good as they thought because International students have much more pressure being in this country, and sometimes they cannot handle it very well. Therefore, in the United States the life of an international student is very unfavorable if people compare it to the life of an American student. International students have to learn a new language to study, they cannot work while studying, and their tuition is much more expensive.
1.Briefly describe reasons for Phillips and Matsushita to operate internationally. Why do they do it? Describe the international strategy of Phillips and Matsushita using the international strategy classifications we discussed in class (e.g., localization, transnational, global).
Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.
Higher prices lead to lower demand compared to the competitors’ granite products. Delays will also lead to poor service, meaning lower goodwill as well as lost sales.
Financial risks include the short payback period. A 3-year payback period would not allow Hansson the opportunity to breakeven. With a negative NPV in the first 3 years Hansson’s decision to invest in the project would be based on his ability to negotiate a longer contract time. The Net Present Value (NPV) would have to be examined in tandem with the other non-financial variables.
The project has gone far over budget and over schedule. And yet in its final stage, we still face additional cost in new software licensing. In the mean time, we also need the resources in place to launch the new product after years of research and development. We do not have enough cash for both, so the decision here is whether to delay the launch of the new product, or choose to
The present value of the net incremental cash flows, totaling $5,740K, is added to the present value of the Capital Cost Allowance (CCA) tax shield, provided by the Plant and Equipment of $599K, to arrive at the project’s NPV of $6,339K. (Please refer to Exhibit 4 and 5 for assumptions and detailed NPV calculations.) This high positive NPV means that the project will add a significant amount of value to FMI. In addition, using the incremental cash flows (excluding CCA) generated by the NPV calculation, we calculated the project’s IRR to be 28%. This means that the project will generate a higher rate of return than the company’s cost of capital of 10.05%. This is also a positive indication that the company should undertake the project.
Mary Madison, Director of Market Research at U.S. Agricultural Tractor (USAT), has just come from an important meeting at which it had been decided to initiate a study a study of export opportunities for the firm’s tractors. Since she had no experience in global marketing, she was rather concerned about how best to approach this task.
There is really a need to look into the welfare of pupils so that they could achieve to the fullest. It is a fact that when a pupil has emotional or personal problems, he cannot make use of his potentialities. Guidance is a process of helping the individual to understand himself and his world so he can utilize his potentialities. Guidance is a process of helping the individual to understand himself and his world so he can utilize his potentialities (Shertzer and Stone, 2013). It is a process of helping individuals develop to the maximum of his capacity in the direction most beneficial to himself and his society Guidance is helping a person to see through himself in order that he may see himself through (Hamrin as cited by NSGMED, 2014).