we can know the expected cash flow‚ with starting a new racket‚ bring to us. First of all‚ we need to know the expected sales and expected variable costs‚ which are not indicated directly. Expected sales = market size × market share × price Therefore the expected sales = market size × market share × variable costs So‚ the expected variable costs = 120‚000×25%×$120 = $3‚600‚000 Expected variables costs = 120‚000×25%×$70 = $2‚100‚000 Therefore‚ the net cash flow of this project will be given
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5 (B) Critically assess Bill Miller’s investment philosophy Bill Miller is the chairman and CEO of Legg Mason Capital Management. Legg Mason Capital Management is an investment management firm with more than $60 billion under management. Bill Miller actively operates the Legg Mason Value Trust mutual fund‚ which has a lengthy history of outperforming the S&P 500 benchmark (Jim‚ 2010). Bill performed a stint in U.S military intelligence after graduated from Washington and Lee universities in
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(ambitious program of acquiring assets; e.g. purchasing Hanomag) • Make unnecessary capital expenditures (high debt-to-equity ratio) • Possible hire of unnecessary employees • Overconfidence; New opportunities are better off than they actually are • Free cash flow hypothesis • Continue to invest in projects that should be cancelled • Limited Diversification • Due to strength in negotiating deals with governments versus vulnerability to political distress in 70’s in Iran‚ Pakistan‚ Libya and Poland. 2
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The cash flow will grow at the inflation rate of 3.7%. Utilizing the real cash flow formula (1+R) =v (1+R)(1+H) 1.10 = (1+R)(1.037) R= 6.08% The conservation funds are anticipated to grow slower than the inflation rate. The return for the conservation fund will be‚ (1+R) = (1+R) (1+H) 1.10 = (1+R) (1.032) R= 6.5% The cash flow from the thinning process is as follow‚ Cash flow from thinning = Acres thinned x cash flow per acre Cash flow from thinning = 7‚500 ($1‚200) Cash flow from thinning
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1.SHOULD THE $100‚000 THAT WAS SPENT TO REHABILITATE THE PLANT BE INCLUDED IN THE ANALYSIS? EXPLAIN. The $100‚000 is a cost already occurred in the past and it was decided on a stand-alone basis. The plant would have been rehabilitated regardless of what would happen with the project‚ just to protect the company’s property. This sunk cost should no way be included in the analysis. Of course the case would have been different if the plant hadn’t been rehabilitated and its rehabilitation was decided
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1. Define the term Free Trade: The absence of barriers to the free flow of goods and services between countries. 2. What does this chapter look at? -The political reality of IT -It presents us with a clear example of government intervention in IT that is designed to protect the interests of domestic producers. -The political and economic reasons tha government have for intervening in IT. (when govs. intervene‚ they often do so by restricting imports of goods and services into their nations
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Omega Paper‚ a manufacturer of paper products and notebooks. A five year income forecast for Omega is given below. Vanguard plans to keep Omega’s debt-equity ratio at its current level. | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Operating Cash Flow after tax | 69 | 65.7 | -2.7 | 33.9 | 67.9 | Capital Expenditures | 1.8 | 4.2 | 0.2 | 3.8 | 4.7 | | | Other information: | | Tax rate | 35% | Book value of debt ($MM) | 165 | Book value of equity ($MM) | 375.9 | Share price ($) | 10.3 |
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clarify the attached Statement of Cash Flows and provide a brief synapsis of this year’s results. Although at first glance you may notice that Carpino Company had a net loss $30‚000; this is not necessarily cause for concern. After factoring in the $55‚000 depreciation and subtracting the $5000 gain from sale of investment‚ we were able to produce a positive $20‚000 in net cash provided by operating activities. As with our operating activities our cash flow
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HOME DEPOT‚ INC. in the New Millennium Tom Thomson‚ Suzanne Ma‚ Todd Humphrey‚ Owen Clements June 28‚ 2006 Agenda Background/History Current situation Accounting and Finances Growth Initiatives Financial Analysis Forecast HOME DEPOT Inc. Founded In 1978 in Atlanta‚ Georgia Largest Retailer of home improvement products Stores were warehouses and sold large volumes of goods at low prices Offered ‘how-to-clinics’ and knowledgeable customer service representatives Between
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How Fate and Free Will Play a Part in The Odyssey Fate and free will are epic subjects in life. When we cannot control something we blame it on fate‚ but we try to change the way things are with our free will. Fate is something unknown that determines what will happen. It may seem like a coincidence or may feel like an omen‚ but it is something no person controls for oneself. Fate‚ to some‚ may be in the hands of a higher power such as gods or God. For others fate is merely something that happened
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