AES - Case Analysis & Write up How would you evaluate the capital budgeting method used historically by AES? What is good and bad about it? Previously‚ the economics of a given project were evaluated at an equity discount rate for the dividends from any project and as it was mostly financed through local debt‚ which was non-recourse to the parent company‚ AES use to evaluate the dividend cash flows at a standard 12%. It is a simple approach with portions of sound reasoning. One could argue that
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By doing so‚ Scholey wanted the AES-Telasi could have the same standard of other AES distribution operations. One of the key investments was meter household to link consumption. Consistent with the AES model of empowerment‚ line-level employees would be allowed to decide which investments were appropriate. II. Combating corruption. Started negotiating with a state-owned company that had a legal monopoly on the import of electricity from Russia. He knew the AES needed reliable supplies in order
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Sunday‚ March 15‚ 2009 COST OF CAPITAL AT AES Evaluating the Historical Capital Budgeting Method Currently AES employs Project Finance Framework. Project finance tends to be used in projects with tangible assets with predictable cash flows in which construction and operating targets can be easily established through explicit contract. The key to AES projects financing lies with the precise forecasting of cash flows. In effect‚ the possibility of estimating cash flows with an acceptable
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Case 3: Globalizing the Cost of Capital and Capital Budgeting at AES Question 1 Explain and comment on the capital budgeting method used historically by AES. Is there a need for change? Explain. Question 2 If Venerus implements the suggested methodology‚ what will be the adjusted discount rate for the Red Oak project (USA) and the Lal Plr project (Pakistan)? Question 3 Calculate the effect that a revision of its cost of capital will have on the Lal Plr project’s NPV. Comment on the
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1. Describe AES’s organizational structure? What are its authority structures and control processes? What role do values play in this structure? AES organization has developed a unique decentralized “honeycomb” structure (See Exhibit 1) based on its core values. Their innovative authority structure empowered people at every organizational level to make decisions and take responsibilities according to the business needs. It helped company to achieve flexibility and accelerate decision-making
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1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal‚ a project finance framework was employed.” Usually‚ project finance framework is used when the project has predictable cash flows‚ which can easily represent operating targets through explicit contract. When cash flows are certainty‚ the company can have
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1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? Historically‚ the AES capital budgeting method primarily used the following assumptions: • All nonrecourse debt was regarded as good • Dividend cash flow were considered equally risky • Project was evaluated by the equity discount rate for the dividends from the project • A 12% discount rate was applied to all projects. The historical method is quite simplistic
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GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY S HR-3 FEBRUARY 1997 HUMAN RESOURCES AT THE AES CORPORATION: THE CASE OF THE MISSING DEPARTMENT Dennis Bakke‚ the CEO of AES‚ a company that develops‚ builds and operates electric power plants‚ sat in his office late in 1996 and thought about the question that was perennially posed to him: could AES‚ soon to have some 25‚000 people located literally all over the world following a recent purchase of power plants in Kazakhstan‚ continue to operate
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Human Resources at the AES Corporation: The Case of the Missing Department discuss the effectiveness of AES’ approach to HRM‚ and make recommendations for the future. Table of Contents INTRODUCTION 4 ADVANTAGES OF AES’ APPROACH 5 CONCERNS 6 RISKS GOING FORWARD 7 RECOMMENDATIONS 8 CONCLUSION 9 APPENDIX 10 BIBLIOGRAPHY 11 INTRODUCTION AES’ annual results speak for themselves‚ financial data available‚ from 1991 to 1996 shows that
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Advanced Encryption Standard (AES) Most of lecture slides by Lawrie Brown Origins clear a replacement for DES was needed have theoretical attacks that can break it have demonstrated exhaustive key search attacks can use Triple-DES – but slow‚ has small blocks US NIST issued call for ciphers in 1997 15 candidates accepted in Jun 98 5 were shortlisted in Aug-99 Rijndael was selected as the AES in Oct-2000 issued as FIPS PUB 197 standard in Nov-2001 AES Requirements private key symmetric
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