Caladonia Products Integrative Problem Paper
FIN/370
May 30, 2011
Chrissy Helbling

12a.
Project A :100,000/32,000 = 3.125 years
Project B : 100,000/200,000 = .5
4 years + .5 years= 4.5 years

12b. What is each project’s net present value?
For project A, the projects net present value is $100,000 the initial investment overhead of the project is a negative expenditure because it is an expense to the company. Over the next five years the group expects to add the present annual value of $32,000, the return rate will be 11% utilizing the annuity table. The factor will be 3.696 at 11% for five years. To calculate the cash inflow, multiply the annual $32,000 by 3.696 at 11% to equal $118.272. Over a five year period the total cash inflow is $118,272 with a net value of $18,272 for project A. Net present value = $118,272 - $100,000 = $18,272 The first four years for project B, there was no cash flow. In year five there was $200,000 in cash inflow. To calculate the present value of the $200,000 for five years, now at 11, utilize the present value of $1.00 table. The result factor of the table is 0.593. The present value of $200,000 in five years at 11% calculates to be $200,000 multiplied by 0.593, which equals $118,600. The net present value for project B is $18,600. Net present value = $118,600 - $100,000 = $18,600 12C

...CaladoniaProductsIntegrativeProblem
Tonia Tolliver, Suany Gonzalez, Teresa Powell, Victor Estrada, and Tracy Harriss
FIN/370
November 8th, 2010
Joe Brennan
CaladoniaProductsIntegrativeProblem
Every new employee is faced with the challenge of proving him or herself before being trusted to complete a task on his or her own without supervision. The new financial analyst at Caladonia has been employed for two months and has proven to be a wise hiring decision based on the Chief Executive Officer (CEO) view however he is still hesitant to give the assistant any large responsibilities without supervision. The CEO has tasked the assistant with both the calculation of the cash flows associated with a new investment under consideration and the evaluation of several mutually exclusive projects (Keown, Martin, Perry, & Scott, 2005). The lack of experience on the assistants part has also lead to the CEO requesting not only that the assistant provide a recommendation but also to respond to a number of questions aimed at judging the assistants understanding of the capital budgeting process (Keown, Martin, Perry, & Scott, 2005).
Financial Assistants Assignment
The financial assistant received the important assignment by memorandum from the CEO. The memorandum stated that the company is considering the introduction of a new...

...
CaladoniaProductsIntegrativeProblemCaladonia is looking to invest in projects that will yield a high rate of return to the company. They are relying on a fairly new employee to research and report adequate analysis on which direction the company should go in. Learning Team B will use the provided company data to aid the new employee in this venture and to determine the payback periods, the internal rate of return, and to decide which project will be the most beneficial project for the company to invest in, in hopes of having a successful ROI.
The initial working capital shown in the cash flow chart for each project is $100,000. Project A has an annual cash flow of $32,000 but project B receives a lump sum in the 5th year of $200,000. The ROI on the initial investment is 0.11.
12 a.) The payback period for Project A is 3.125 years ($100000/32000 = 3.125 year). Project B’s payback period for $200,000 is 5 years or an estimated 4.5 years for the first 0.5 payment of $100,000 with a balance of $100,000 due at the 5th year mark.
12 b.) The NPV of project A is determined by taking the cash inflows minus the investment cost for Project A which will give you a net value of $18,272. -$100,000 for project A is the companies expense amount for funding the project.
NPV = $118,272 - $100,000 = $18,272
The NPV for Project B equals the present value of $1.00 for 5 years at 0.11 which...

...Caledonia ProductsIntegrativeProblem
Charles Fletcher
FIN/370
March 25, 2013
Daneene Barton
Caledonia Products is determining a new business proposal. The organization is planning a free cash flow investment and evaluating a project to determine the net present value of the business proposal. In the project financial analyst from Caledonia Products will consider the net value versus the internal rate of return. The research will determine if the organization will become profitable over the duration of five years. Research will also analyze if the investment will be a deficit to the company’s production over the duration of the project.
A factor that Caledonia must take into consideration when determining if to lease versus buying is the security that comes along with owning an asset versus leasing one. With Caledonia owning the equipment, the company could feel more secure than with the leasing of an asset. The lessor can take the asset at any time, when ending the contract. Another factor that Caledonia must take into consideration is the maintenance that comes with owning vs. leasing. Some maintenance issues Caledonia faces with owning an...

...Caledonia ProductsIntegrativeProblem
FIN/470
TEAM PAPER
From: The Assistant Financial Analyst
Re: Cash Flow Analysis and Capital Rationing
Caledonia is a corporation who is interested in adding a new trending project to their project line. The project would only be in production for five years and the company has chosen team A to make an educated recommendation. Tem A will analyze the following:
• Cash flow
• Net present value
• Internal rate or return
The following analysis is provided to aid in the understanding of Team A’s final recommendation:
Free Cash Flows
The focus of what Caledonia receives is the free cash flow. The company should focus on what is received and what can be reinvested. The cash flow allows Caledonia to analyze the actual benefits and the costs involved. If the company calculated the depreciation as an expense, and focused primarily on the accounting profit view the amounts would be substantially lower than what is reflected in the free cash flow.
OPERATING CASH FLOW
0 Year 1 Year 2 Year 3 Year 4 Year Year 5
Unit sold 70,000 120,000 140,000 80,000 60,000
Sales price 300 300 300 300 200
Revenue 21,000,000 36,000,000 42,000,000...

...Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:
YEAR PROJECT A PROJECT B
0 -$100,000 -$100,000
1 32,000 0
2 32,000 0
3 32,000 0
4 32,000 0
5 32,000 $200,000
The required rate of return on these projects is 11 percent.
Project A: Net present value is found by taking the original investment cost, $100,000 (that would be a negative amount since it's cash out the door), and then adding the present value of the annual cash inflows expected ($32,000 for 5 years at the required rate of return of 11%). You look up in the present value annuity table the factor for 5 years at 11%, which is 3.696, and multiply by 32,000 to get present value of expected cash inflows = $118,272. Net present value = $118,272 - $100,000 = $18,272 Payback period is the time that it takes a project to recover its initial cost from the revenue it generates. Payback period = Investment required / Net annual cash inflow = $100,000 / $32,000 = 3.125 years.
Project B: In this one, there are no annual cash inflows, just the one inflow of $200,000 in year 5. So you need to find the present value of $200,000 five years from now at 11%. You don't use the annuity table for this one, you use the present value of $1 table. The factor this table gives is 0.593. So the present value of $200,000 five years from now at 11% is $200,000 * 0.593 = $118,600. Net present value = $118,600 - $100,000 =...

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MM4772 Product Management
Individual Assignment
Name: CHENG Chia Yi
Student ID: 12129503D
Lecture: Friday (Lec001)
Tutorial: Wed 13:30-14:30 (Tut001)Phone no: 59849966
Email: 12129503d@connect.polyu.hk
25850854889500Brand new product
New direct flight from Taiwan to Hong Kong provided by Tigerair Taiwan with low fare. (two way)
Brief background introduction
Tigerair Taiwan, the first budget airline which is a joint ventured by China Airlines and Singaporean low cost carrier Tigerair. The new company has recently started its operation of flight from Taiwan to Singapore since 26 Sep 2014.
Target market
-2508251079500Low-income or middle-class customers who are highly possible to consume budget airline service.
People who travel a lot between Hong Kong and Taiwan. (e.g. student, businessmen)
Age from 15 to 60, customers who do not need extra assistant or service during the flight.
Category attractiveness analysis
Aggregate market factors
Category sizeattractiveness
According to the Taiwan Tourism Bureau website, inbound visitors arrive in Taiwan has the increasing amount of 8,016,280 in total and outbound travelers has reached to a new peak of 11,052,908 people last year. Due to the geography features, mostly all of the visitors are arrival by plane. Besides, statistics also show that the total amount of Taiwanese visit in Hong Kong is 190,162 from Aug 2013 to Aug 2014. It shown that airline businesses share a large category...

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The Effects Of Illegal Immigration
On American Society
Social problems exist everywhere in society today. Economic and poverty related issues tend to be among the ones we blame other people for. For example, illegal immigrants. Many Americans believe that illegal immigrants have contributed to these issues but are they truly making the economy and country worse? Just under a million immigrants arrive in the United States each year. For this reason, the United States has often been called a nation of immigrants. The United States is unique in the fact that we are a 'melting pot' for so many different cultures, races, and religions in the world. Our immigrant past has helped us mold a national character. For the last several centuries, various ethnic, cultural, and social groups have come to the United States to reunite with their loved ones, seek economic opportunity, and to find a safe place from religious and political persecution (Schneider 2011). One of the negative impacts of undocumented immigration is the low-wage jobs that they work for where they receive payments in cash, and therefore, are not subject to federal tax deductions. Although this is a significantly negative impact on the United States economy, there are also some positive impacts of undocumented immigration as well. Some positive impacts include: increasing of incomes of U.S. families, complementing skilled workers, performing manually intensive jobs to provide...

...on the product cost? What type of system does the company you work for use? (if you are familiar)? What type of system do you think would work best for your company and why?
What is the difference between product costs and period costs? Give examples of each. How are each recorded on the financial statements?
What are the differences between a direct cost and an indirect cost? Which is the more difficult cost to track? Why? How do indirect costs affect the cost of a product? Should indirect costs be included in product cost? Why or why not?
Product cost is the cost of everything dealing with the labor and material used and period cost includes all other expense not direct related to the labor and material cost such as selling and administrative expense. The product cost is recorded as an inventory until it is sold then is recoded as cost of goods sold and cost of goods sold is recorded on the income statement and the current assets on the balance sheet. The period cost is recorded as expense. Direct cost is the cost that is created by anything that comes with the creation of the service or product and indirect cost is the cost that is not a part of the creation process but is a part of the company. An increase or decrease in direct cost will have the same effect on the cost of the product and an indirect cost may not affect the cost the...