Suppose you are a city planner. You are reviewing proposals for a new park and a new bus station. You only have enough funds for one project. Explain how you would apply each of the two core principles of TQM as you make your decision on which project to fund
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- The Dudumwezi city Council is a considering the introduction of speed trains in order to deal with the problem of traffic congestion in the city. The project will be implemented through the PPP model. Councilors are skeptical about the financial viability of the project and have asked for a financial viability assessment of the project. To this end the council management has engaged a consultant to carry out this assessment. Required:To aid the Councilor’s, explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.You are analyzing a project and have prepared the following data: a. Based on the net present value of this project, should you reject or accept this project? (Please provide the formulas for calculation or the keys applied if a financial calculator is used) b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? (Please use a financial calculator and list the keys you use)Sam Strother and Shawna Tibbs are vice presidents of Mutual of Seattle Insurance Company and co-directors of the company’s pension fund management division. An important new client, the North-Western Municipal Alliance, has requested that Mutual of Seattle present an investment seminar to the mayors of the represented cities, and Strother and Tibbs, who will make the actual presentation. C) How does one determine the value of any asset whose value is based on expected future cash flows? D)How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%? E) What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3 percentage points, causing investors to require a 13% return? Would we now have a discount or a premium bond?
- D- Coll corporation, a leading entity in City planning, and you are part of a city planning tee working on a sustainable urban development project. This case study involves ial planning, spatial considerations, and optimization of transportation networks. city planning committee is allocating funds for a sustainable urban development project. e total budget for the project is $3,000,000 (without GST). The committee has divided the udget among three key areas: Residential Infrastructure, Commercial Zones, and Green Spaces. 1. The committee decides to allocate budget over the three areas at the ratio of 4:3:1. Divide the total budget based on the ratio and identify the amount allocated for each key area. 2. Express the budget allocation as a percentage of the total budget. After expressing the budget in percentages, answer the following questions: a. What percentage of the total budget is allocated to Residential Infrastructure compared to Commercial Zones? b. If the budget for Green…You are responsible to make a recommendation to the college regarding the upcoming capital projects. Be sure to evaluate each project using payback, NPV, IRR and PI capital budgeting techniques.We do not have enough money to do both projects, please evaluate both and make your recommendation. Both projects will require an original cash investment of $5,000,000. We are considering an ice rink (project A) and a new residential hall with a commuter lounge (Project B). The ice rink will provide revenue of $2,000,000 and the new hall $1,500,000 year one. For the ice rink, cash inflow will be $500,000 years 1 & 2, $600,000 years 3 & 4 and $750,000 each year 5 and beyond. The new hall will have cash inflow of $800,000 years 1, 2, &3 and 500,000 each additional year after that. The college has a payback policy of 5 years and our cost of capital is 10%. Assume each project will have a 10-year useful life.Please describe NPV, IRR and their relationship. How do you evaluate each for making an investment decision? That is, what is a favorable NPV and IRR for making an investment decision. If you were developing a capital budgeting process at your employer, how would you prioritize your projects? What is the NPV when IRR = WACC, IRR>WACC, and IRR<WACC? There is a duplex for sale in Absecon for $700,000 at this time. It has 2 units that generate a total of $25,000 in gross rent. The property taxes are $4,000, commercial property insurance is $2,000, flood insurance is $1,000, and annual maintenance is $2,000. You expect to sell it in one year at a price growth of 0%. What is the NPV with a WACC of 10%. Is the IRR greater or less than the WACC? Would you invest in this project and why?
- A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following. Solve, a. Which system has the greatest B–C ratio? b. Which system has the largest incremental B–C ratio(based on differences between alternatives)? c. Which system should be chosen ?Drs. Jones and Smith have reviewed the budget you provided to them for their expansion efforts. Both of them have indicated that they could contribute additional personal funds into the practice in an equal proportion to fund the expansion project, but they want you to advise them on whether this would be beneficial or too costly. Considering the time value of money, the cost of debt, and the loss of personal interest if they contribute to the practice instead of holding onto their personal funds. What are the points of discussion you would present to the doctors and what would be your recommendation for the long-term growth of the practice vis-à-vis their personal wealth?Suppose you would like to invest your money for your future. You have three choices of funding agencies namely, FA 1, FA 2, and FA 3. Based on the given data below, compute for the future interest of each funding agency. What would you choose? Explain your answer. (Kindly explain your answer and put a step-by-step formula. I can't understand excel)
- A city government is considering increasing the capacity of the current wastewater treatment plant. The estimated financial data for the project are as follows: What would be the benefit-cost ratio for this expansion project?(a) 3.26(b)3.12(c) 1.30(d) 2.23Suppose you would like to invest your money for your future. You have threechoices of funding agencies namely, FA 1, FA 2, and FA 3. Based on the givendata below, compute for the future interest of each funding agency. What would you choose? Explain your answer.GoG is considering two alternative proposals to improve road safety and reduce traffic congestion in city “A”: (a) constructing a new bypass or (b) upgrading existing roadways. The Bypass Proposal will have an initial cost of GHC60 million and annual maintenance costs of GHC2.25 million. It is expected to yield benefits of GHC9.75 million per year. The Upgrading Proposal has an initial cost of GHC7 million, annual maintenance costs of GHC262,500 and annual social benefits of GHC1.14 million. Each project has a life of 30 years. The Bypass Proposal, which would have donor funding component, involves a discount rate of 8% while the Upgrading Proposal, to be funded wholly by government, has a discount rate of 4%. i. Calculatethenetpresentvalueofeachproposalanddetermineifit is economically viable ii. Which of the two proposals is more economically justifiable.