Essay on Introduction to Finals 2

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?

General Foods is a large corporation organized by product lines. They are evaluating Super Project, the manufacture of a new powdered dessert. Crosby Sanberg, a financial analysis manager, must determine the value in accepting the proposal, along with J.C. Kresslin, the Corporate Controller. The Super Project will increase profit with a payback period of less than ten years. The proposed capital investment for the project is $200,000 ($80,000 for building modifications and $120,000 for machinery and equipment) and production would take place

c. Africa should be only one of the main focal points of their study of history.

Star Appliance is looking to expand their product line and is considering three different projects: dishwashers, garbage disposals, and trash compactors. We want to determine which project would be worth doing by determining if they will add value to Star. Thus, the project(s) that will add the most value to Star Appliance will be worth pursuing. The current hurdle rate of 10% should be re-evaluated by finding the weighted average cost of capital (WACC). Then by forecasting the cash flows of each project and discounting them by the WACC to find the net present value, or by solving for the internal rate of return, we should be able to see which projects Star should undertake.

"a. If each project's cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what

2. The current NPV is negative. One way to save money would be to reduce consulting costs. Please set the average consulting cost per month in cell b33 to $5000. At what discount rate is the NPV for the project 0?_____0.026____

The senior management of Company A employ you to advise them on the cost of capital the company should use to calculate net present value and decide whether or not to undertake a new investment project. You may assume that the new project is comparable to the average of the company’s existing projects in all respects.

The idea of reporting the news is to tell viewers what is happening in the world without bias and from a neutral standpoint. Over the years, however, some things slip through the cracks and news is reported biasly, especially in racial terms. There are many solutions to remedy this situation by keeping equal representation within reporters and reporting fairly on all platforms. New policies can be put in place as not censorship but purely unbiased reports and news articles to prevent outrage and possibly boost ratings.

Lethal injection was first adopted in 1977 in the state of Oklahoma and was first administrated in the state of Texas in 1982 (Crider, 2014). Before lethal injection methods like hanging, gas chamber, firing squad, and electric chair were used to execute. The United States has tried to find an alternate method that will not be considered inhumane and painful to the inmate. The effect of lethal injection is now being questioned if it is constitutional, arises medical professionals controversy, and the shortage of drug substance.

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

The recommendation Mr. Navallez should take is alternative 1. Alternative 1 offers the best return on investment. The use of the net present value techniques presents the desired return on investment. Net present value over internal rate of return presents the expected return on cash outflows for the cost of the investment, thus allowing management to “compute a present value index.” (Edmonds, Edmonds, Olds, McNair, & Schnieder, p.1160) Assume the desired rate of return is 8% over 10 periods, alternative 1 cash inflow would be $421,834 with cash outflow being $323,091 and alternative 2 cash inflow of $314,057 with cash outflow being $283,930. The present value of alternative 1 is $98,743 and alternative 2 is $30,127. Alternative 1 yields a higher rate of return, however, taking it a step further to confirm alternative 1 is the best investment the present value index offers an additional comparison of the two investments.

When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?

Assume that you recently graduated with a major in finance. You just landed a job as a financial planner with China Development Industrial bank (CDIB), a large financial services corporation. Your first assignment is to invest $100,000 for a client. Because the funds to be invested in a business at the end of 1 year, you have been instructed to plan a 1-year holding period. Further, your boss has restricted you to the investment alternatives in the following table, shown ith their probabilities and associated outcomes.

After school I have to go to my first tennis lesson of the day. Every day I do two tennis lessons, with my 2 tennis tutor’s Brianna and Haley. I usually do my tennis lessons at Flora. 1 practice my back hand throws. After 1 hour I can take a quick brake, then back to my lesson it is. I’m really happy that I’ve been taking tennis lessons. Next year I’m taking tennis at Senior High School. I love tennis. Tennis is super fun, if you ACTULLY know how to play. My 16-year-old brother also plays tennis. His name Is Gabriel. He is very good at playing tennis, but I’m better. My brother Gabe and I play tennis a lot, together. He plays tennis with my 2 tennis Tutor’s. Brianna and Haley are very nice girls. They’ve been Friends with my Family since they were in Middle school.

You need to make a decision on whether to invest RM146300 in Project Y or Project Z that guarantees the following cash flow and annual relevant cost at the end of each year as indicated in the table below.