We examined the decision to invest in the Tri-Star project by forecasting the cash flow associated with the project for a volume of 210 planes. We also asked what a valid estimate of the NPV of the Tri-Star project at a volume of 210 planes as of 1967 would be. We found this to be -$584 M. This was clearly an unacceptable NPV for capital budgeting on the project. A break-even analysis revealed that the project reached economic break-even with the production of 275 planes at $12.5 M per unit but
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(12%) Rainbow products shouldn’t go for it. (B) Based on the perpetuity formula we can compute the PV in this case : Computation of the PV : PV= Cash flow per year/ cost of capital) =4‚500 / 0.12 = $37‚500 Computation of the NPV : NPV= -Initial investment + PV = -35‚000 + 37‚500 NPV=$2‚500 Rainbow products could buy this machine with the service contract if they intent to use it in the long-run. (C) Computation of the PV : PV= C/ k-g In this case C (end of year perpetuity payout) = 5‚000-1‚000=
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Investment Analysis and Lockheed Tri Star Key facts * 1971 ‚company found itself in congressional hearing seeking a $250 million to secure bank credit required for completion of the L-1011 tri star program COSTS * Pre-production i.e. from 1967 to 1971 estimated cost $900 million‚ * From 1972-1977 the total plans delivered was 210. * The average unit production cost per aircraft would be about $14 million. Inventory intensive production costs would be $490 million. (35 aircrafts
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Investment Analysis and Lockheed Tri Star (Submission-1) by WMP 08009 Davinder Singh WMP 08022 Manish Kumar Singh WMP08035 Rahul Yadav WMP08036 Rajesh Ganvir A report submitted in fulfillment of the assignments for Financial management WMP 2015 Indian Institute of Management‚ Lucknow Noida Campus Date: 30.03.13 1. Rainbow Products | : | | | | | | | | Scenario 1 : Purchase of Paint- Mixing machine to reduce labor cost | |
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distribution in silts and clays‚ where the soil particles are given the sizes of equivalent spherical particles. The density of a soil-water suspension depends upon the concentration and specific gravity of the soil particles. If the suspension is allowed to stand‚ the particles will gradually settle out of the suspen- sion‚ and the density will be decreased. The hydrometer is the instrument used to measure the density of the suspension at a known depth below the surface. The density measurement‚ together
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Accounting Part I: Introduction This is a report on Lockheed Martin‚ Inc. I will‚ from hereon‚ refer to Lockheed as the company. The annual report on which this report is based was filed with the SEC on Feb 28‚ 2005. The report is for the fiscal year 2004. In the company’s own words‚ "Throughout this form 10-K‚ we incorporate by reference‚ information from parts of other documents filed with the Securities and Exchange Commission". I selected Lockheed Martin Inc for this project because I think it is
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Festival LTD the company that is in charge of the organization and the distribution of the varies concessions around the event site. (Philip m. ‚ 2013) Since 2002 festival republic which is a company that consist in the merging of (live Nation and MCD) takes care of the managing the logistic‚ security‚ and 40% of the concessionary stakes in the festival. (stroke‚ 2013). Food and beverage stalls Concession for the stall and Glastonbury have a very different type of price depending on the size and
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Strategic analysis and planning for Nokia in Finland Name: Ding Zhaofeng UOB Number: 10036495 Batch Number: BMMD2 1011A Module: Applied Strategic Management Lecturer: Mr. G.V. Nathan Submission Date: 06-Mar-2012 CONTENT PAGE Acknowledgement……………………………………………...…………………3 Outline..............................................................................................................4 Executive Summary………………………………………………………
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Do you agree with the view that in the period 1900-19 the British only made concessions to India in order to strengthen their hold on the sub-continent? India‚ throughout history‚ has been subject to numerous cases of persecution‚ subjugation‚ conquest and oppression. Successful conquest of India is a difficult yet lucrative investment and can easily help supplement and revitalise an economy through the trade of its bountiful natural resources. Despite India’s monetary value‚ the Official British
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Q1 - In the film Divergent‚ a character I admire is Beatrice Prior or Tris. I admire her specifically because she is incredibly strong willed‚ brave‚ and dislikes showing weakness. This film is set in a futuristic Chicago‚ where the community is divided into 5 factions. Abnegation the selfless‚ Dauntless the brave‚ Eridute the intelligent‚ Condor the honest and Amity the peaceful. When all teenagers reach the age of 16‚ they are required to stay in the faction they were born into‚ or transfer to
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