Case 17 – The Investment Detective The case of the Investment Detective laid out the cash flows for us in each of eight different projects. Before doing any calculations we came up with the assumption that we could not rank the projects simply by inspecting the cash flows. Without the ability to rank the projects based off of cash flows solely‚ we had to use some analytical criteria as a capital budgeting analyst to provide some thorough support and reasoning for how we ranked the four best
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and Resource Allocation 17. The Investment Detective © The McGraw−Hill Companies‚ 2003 CASE 17 The Investment Detective The essence of capital budgeting and resource allocation is a search for good investments in which to place the firm’s capital. The process can be simple when viewed in purely mechanical terms‚ but a number of subtle issues can obscure the best investment choices. The capital-budgeting analyst is necessarily‚ therefore‚ a detective who must winnow good evidence from
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1. THE INVESTMENT DETECTIVE This case presents the cash flows of eight unidentified investments‚ all of equal initial investment size. The student’s task is to rank the projects. The first objective of the case is to examine critically the principal capital-budgeting criteria. A second objective is to consider the problem that arises when net present value (NPV) and internal rate of return (IRR) disagree as to the ranking of two mutually exclusive projects. Finally‚ the case is a vehicle for introducing
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Case Study: The Investment Detective Primary consideration is the capital availability. If the firm has unlimited access to capital and no other investment options‚ Net Present Value would become recommended quantitative method. On the other hand‚ if the time horizon and payback period matter‚ the company should use Internal Rate of Return Calculation. 1. Looking at the cash flows doesn’t really say much. The assumption is that the firm is in the business to make profit. Profit is equal return
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The Investment Detective Case We can use normal investment to calculate the data‚ but we also can do it as reinvestment to invest every project for the same years. For every question‚ I will give answers for both normal investment and reinvestment. 1. We can rank the projects simply by the cash flow data. Normal investment: Rank 1 2 3 4 5 6 7 8 Project number 3 8 6 1 5 7 4 2 Cash flow 8000 2150 200 1310 2200 560 1561 165 Reinvestment: Rank 1 2 3 4 5 6 7 8
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For the exclusive use of S. YAN UV0072 Version 2.2 THE INVESTMENT DETECTIVE The essence of capital budgeting and resource allocation is a search for good investments in which to place the firm’s capital. The process can be simple when viewed in purely mechanical terms‚ but a number of subtle issues can obscure the best investment choices. The capital-budgeting analyst‚ therefore‚ is necessarily a detective who must winnow bad evidence from good. Much of the challenge is in knowing what quantitative
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A detective is a police officer‚ whose duty is to detect criminals‚ by in-depth investigation of cases. When attempting to solve a crime‚ detectives conduct a criminal investigation that seeks all the facts about a crime to help determine the truth: what happened and who is responsible. This involves making a preliminary and final investigation. A detective’s task is to gather‚ organize‚ and use information about social behavior. To effectively complete that task a detective should possess
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Senior Research Paper: Homicide Detective Do you ever wonder what happens prior to a murder‚ what lead to this outcome‚ what the victim felt or even what the murder felt? A homicide detective is the one who figures all this out. A homicide is when one human being kills another human being and a detective is the one that finds out why? Why it happened? How did it happen? Who caused it? Where did it occur? And What lead to this act of violence? The reason I chose this career is because it allows
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Jacquel Thompson Detective Thompson GUST 1270 21 November 2011 Homicide Detective I plan to become a homicide Detective. A detective is a investigator‚ either a member of a police agency or a private person. In order to become a homicide detective I must attain a bachelor’s degree in Criminal Justice. There are state required exams required in order to become a homicide detective. I will need to take a lot of classes in higher
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Why Ask Why? The most important part of any type of book or story is that it be interesting. This proves to be particularly important in detective fiction as well. What could be more interesting than having a crime committed in front of you‚ given all (or most) of the details and still not be able to figure it out? This is exactly how detective fiction authors draw people into these stories and books. By weaving an intricate and interesting plot full of fascinating characters‚ and all types
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