WACC- Weighted average cost of capital, annual percentage cost of financing a project of average risk. The WACC is not a reflection of all projects and divisions only for specific projects. Factors that affect WACC- Market conditions, firm’s capital structure, firm’s investment policy. Riskier policies= Higher WACC Ways companies can raise common equity- Issue new shares of common stock, reinvest earning that are not paid out as dividends. CAPM- Rs= Rrf+B(Rm-Rrf); Rrf+B(RPm)

DCF- Rs= D1/Po+G
Project risk= Stand alone risk, Corporate risk, and Market risk. Steps in capital budgeting- Estimate cash flows, assess risk of cash flows, determine required return, evaluate cash flows. NPV= CFo + (CF1/(1+r)^1) + (CF2/(1+r)^2) +….

IRR= internal rate of return on a project. MIRR= The % return on a project if the cash flows are reinvested at the cost of capital. Mutually exclusive= if one project is taken then the other must be rejected. Normal CF= initial cost of project followed by series of positive CF. Nonnormal CF= CFs of project switch back and forth from positive to negative. Incremental CF- Sunk costs are irrelevant, Opportunity costs are relevant Cannibalization- If a new product line were to decrease the sales of the firms other products. (Externality) Always adjust for inflation when estimating cash flows. Risk in Capital Budgeting means an uncertainty in the projects future returns or CFs. Stand alone Risk- The projects risk if it were its firms only asset, ignores firm and shareholder diversification. Corporate risk- reflects projects effect on stability of firms CFs. Considers firms other assets, Market risk- Reflects projects effect on a well diversified stock portfolio. Measured by projects market beta. Scenario analysis- considers several possible outcomes, usually worst case, most likely case, and best case Sensitivity analysis- Shows how changes in single cariable such as unit sales affect NPV or IRR Sensitivity and scenario only measure stand...

...Squeezer is one of the key parts of hydraulic oil press, it plays a feed in the hydraulic oil press, press, the feeding and squeezing properties of the hydraulic oil press plays a decisive influence.palm oil processing plant
In the design of the screw axis calculation, calculation of screw axis compression ratio is an important content.Hydraulic oil press compression ratio is also called the theory of compression ratio or free volume ratio, namely the screw axis of the adjacent two lead free volume.Hydraulic oil press compression ratio is actually calculates pressing chamber spare capacity, general screw shaft surface and the volume contained between the press cage surface as spare capacity.Press cage structure is simple, the volume calculation is easy, so calculating hydraulic oil press the volume of compression ratio is the key to calculate squeezer.
Calculation model
Spiral hydraulic oil press squeezer is similar to the common cylindrical worm, worm drive for squeezer schematic structure, adopt Archimedes worm tooth profile curve shape to facilitate processing.In vertical Archimedes worm tooth profile in [5] axis of the cross-section curve of Archimedes spiral, with the axis of the tooth profile of straight edge trapezoidal section.Archimedes worm on the lathe processing, usually at the top of the tool cutting edge by worm axis, the same with common trapezoidal thread processing situation.
Because squeezer...

...Many nurses are weak with drug calculations of all sorts. This article will help to review the major concepts related to drug calculations, help walk you through a few exercises, and provide a few exercises you can perform on your own to check your skills. There are many reference books available to review basic math skills, if you find that you have difficulty with even the basic conversion exercises.
Common Conversions:
1 Liter = 1000 Milliliters
1 Gram = 1000 Milligrams
1 Milligram = 1000 Micrograms
1 Kilogram = 2.2 pounds
Methods of Calculation
Any of the following three methods can be used to perform drug calculations. Please review all three methods and select the one that works for you. It is important to practice the method that you prefer to become proficient in calculating drug dosages.
Remember: Before doing the calculation, convert units of measurement to one system.
I. Basic Formula: Frequently used to calculate drug dosages.
D (Desired dose)
H (Dose on hand)
V (Vehicle-tablet or liquid)
D
H
x V = Amount to Give
D = dose ordered or desired dose
H = dose on container label or dose on hand
V = form and amount in which drug comes (tablet, capsule, liquid)
Example:
Order-Dilantin 50 mg p.o. TID
Drug available-Dilantin 125 mg/5ml
D=50 mg
H=125 mg
V=5 ml
50
125
x 5 =
250
125
= 2 ml
II. Ratio & Proportion: Oldest method used in calculating dosage.
Known
...

...Grade Average Calculation
There are 3 grade averages: TGA, CGA and GGA.
TGA (Term Grade Average) is the combined grade average covering all courses taken in the term and
the session immediately following.
CGA (Cumulative Grade Average) is computed based on all the courses taken by the student which
are expected at the time of calculation to be applied towards the degree requirements in the current
program.
TGA & CGA =
Sum of (Course Credits x Course grade points)
Sum of Course Credits
GGA (Graduation Grade Average) is calculated at graduation from the courses that are presented for
the award of a degree. Courses taken in the first year of study are given a half-weight. Students who
enter the University with credit transfer of 10 credits or more are not eligible for this half-weight
concession.
Note:
a) Credits/grades that are omitted from grade average calculations
Transfer credits and courses graded AU, I, P, PP or W are omitted from the calculation of all three grade averages.
b) Calculation of ‘F’ grades
For failed courses which are repeated, the new grade obtained after repeating the course will replace the previous
F grade and course credits are only counted once in the calculation of CGA and GGA.
c) Uncleared ‘F’ Grades
For failed courses which are not repeated, the uncleared ‘F’ grades will be included in the CGA and GGA
calculations (the grade averages will be pulled...

...5-1 Earned Value Calculation
1.
PV-BCWS=$3607.14
EV-BCWP=$3593.34 (.98 x 3666.67) CPI x AC
AC-ACWP=$3666.67 (3593.34/.98) EV/CPI
2.
SV= -13.8 (3593.34 – 3607.14) EV – PV
CV=73.33 (3593.34 – 3666.67) EV – AC
SPI=1.0 (3593.34/3607.14) EV/PV
CPI=.98 (3593.34/3666.67) EV/AC
3.
According to these calculations, the schedule variance is running late and the cost variance did not run over. The SPI is 1.0 which means that it is running on schedule. The CPI is .98 which is over budget by .02%. I don’t feel that the project is too far off schedule which they should be able to celebrate.
Calculations:
6/7=86% complete
Budget
101000/4mth=25250
25250/7 tasks=3607.14 each task
Actual
88000/4mth=22000
22000/6 tasks=3666.67 each task
If 7th task was done
91666.67/4=22916.67
22916.67/3273.81 each task if complete 10% under budget
5-2 Earned Value Calculation
Activity Budget % Complete BCWP BCWS ACWP Cost Variance Schedule Variance CPI SPI
A $1,600.00 100% $1,600.00 $1,600.00 $1,800.00 -$200.00 $0.00 0.8888889 1
B $4,000.00 100% $4,000.00 $4,000.00 $4,500.00 -$500.00 $0.00 0.8888889 1
C $14,050.00 90% $12,645.00 $14,050.00 $13,500.00 -$1,035.00 -$1,405.00 0.9366667 0.9
D $5,800.00 10% $580.00 $2,900.00 $500.00 $80.00 -$2,320.00 1.16 0.2
E $12,000.00 0% $0.00 $2,400.00 $0.00 $0.00 -$2,400.00 0 0
F $5,200.00 0% $0.00 $0.00 $0.00 $0.00 $0.00 0 0
G $3,900.00 0% $0.00 $0.00 $0.00...

...Connection Development & Evaluation Centre
Prepared by: Alief Taufiqurrahman
Test Engineer
Dogleg Calculation Using strain DAQ
1 Purpose
To compare dogleg value between strain DAQ and theoretical results, during combine loading axial and bending. 2 Problem Statement Dogleg values between strain DAQ reading and theoretical results is not showing a good agreement during combine loading (i.e. Tension and Bending). The strain DAQ could not show the actual dogleg values, it shows the artificial and actual dogleg. Artificial dogleg occurred due to variation of material properties throughout the cross-section. 3 Method of Calculations 3.1 Strain DAQ V3 Uni-axial Strain method was used to calculate the dogleg, thus 4 uni-axial strain gauges were installed on each section of the specimen (total 2 sections). The setup will give 8 strain signals which eventually the strain DAQ software will calculate the dogleg values. However, the values indicate by the software is not the actual value due to variation of strain signal during tension (caused by variation of material properties on cross section). The dogleg values are shown on Figure 1. 3.2 Theoretical Values Theoretical results were obtained from the raw data generated by strain DAQ. The following formulae (see Annex E of strain DAQ manual for further detail) were used to calculate the dogleg values :
a) Determine the Bending Strain in the 0° plane for each section :
b) Determine the...

...discounted payback NPV IRR, MIRR
The Cost of Capital
• Cost of Capital Components
– Debt – Common Equity
• WACC
Should we focus on historical (embedded) costs or new (marginal) costs?
The cost of capital is used primarily to make decisions which involve raising and investing new capital. So, we should focus on marginal costs.
What types of long-term capital do organizations use?
nLong-term debt nEquity
Weighted Average Cost of Capital is the weighted Average of the Marginal Costs of the Capital Components employed to acquire a long term asset (make a new real investment in things like Plant and Equipment, R&D, Human Capital, a new Product, a new Process, or a new Marketing Channel
Capital Components
Sources of funding that come from investors.
Accounts payable, accruals, and deferred taxes are not sources of funding that come from investors, so they are not included in the calculation of the cost of capital. We adjust for these items when calculating the cash flows of a project, but not when calculating the cost of capital.
WACC Estimates for Some Large U. S. Corporations
Company WACC Intel (INTC) 16.0 Dell Computer (DELL) 12.5 BellSouth (BLS) 10.3 Wal-Mart (WMT) 8.8 Walt Disney (DIS) 8.7 Coca-Cola (KO) 6.9 H.J. Heinz (HNZ) 6.5 Georgia-Pacific (GP) 5.9 wd 2.0% 9.1% 39.8% 33.3% 35.5% 33.8% 74.9% 69.9%
What factors influence a company’s WACC?
• Market conditions,...

...continued to set the pace for industry growth. Revenues as well as per-share earnings increased during this period. The company strengthened its position in key consumer segments and returned value to stockholders through two means – stock buybacks and strong dividends. Highlights of the company’s 2008 financial performance include consolidated revenues that were up more than 4% over the previous year, reported EPS growth at 11.3% to $2.16 per share, return of $15.6 to shareholders through share buybacks and strong dividends. About 43.8% of the total capital of the company comes from debt and the remaining comes from equity. The cost of the different components of its capital structure are – debt: 2.92% (after-tax cost), and equity: 9.49%. The WACC is 6.61%, based on the capital structure outlined. The effective tax rate is 35.4%. AT&T has had dividend growth for the last 25 years. The dividend growth this year was 2.5% and the last year was 12.7%. Dividends declared totalled $1.61 per share in 2008, $1.465 per share in 2007 and $1.35 per share in 2006. The dividend policy considers both the expectations and requirements of stockholders, internal requirements of AT&T and long-term growth opportunities.
Introduction
AT&T is the largest communications holding company in the world by revenue. It is also one of the largest companies on the Fortune 500 and Fortune Global 500 lists. In 2008, the company had reported consolidated revenue of $124 billion. Randall...

...1. Why do think Larry Stone wants to estimate the firm’s hurdle rate? Is it justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital? Please explain.
(10% weighting)
Answer
The hurdle rate is the rate of return a firm has to offer finance providers to induce them to buy and hold financial security. (Arnold,2007). This is also known as cost of capital or weighted average cost of capital. The returns offered by alternative securities with the same risk influences the hurdle rate.
Larry Stone would need to estimate the firm’s hurdle rate because the firm would have to earn a minimum rate of return to cover all the costs generated from funds used to finance investment. The firm’s bonds and stocks would not be sold if the firm does not a minimum rate that covers their cost of generating funds.
When there are differences in the degree of risk between the firm and its divisions then it is not justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital.
We use the company's cost of capital to value new assets which have the same risk as the old ones. If the company is acquiring new assets whose risk is more or less than the risk of the existing assets then the capital required to finance(fund) the new assets will have a different cost of capital as investors demand a return based on the risk to their investment....