The internal rate of return (IRR) and the net present value (NPV) techniques are 2 investment decision tools that satisfy the 2 major criteria for the correct evaluation of capital projects. This criterion is that the techniques should incorporate the use of cash flows and the use of the time value of money. This makes them viable techniques for evaluating investment proposals. The Net Present Value is one of the techniques that are used by firms when evaluating which investment proposals to take
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Figure 1: Cash flow comparison for 15 and 25 year term (NY) 9 Figure 2: Cash flow comparison for 15 and 25 year term (HK) 9 Figure 3: Revenue and Operating Expenses (HK) 10 List of Tables Table 1: List of Assumptions made for NPV analysis 4 Table 2: List of Limitations on NPV Analysis. 4 Table 3: Estimation of Resale value of Carrier @15th year 7 1. Introduction 1.1 Executive Summary Ocean Carriers Inc. (OCI) is an International provider of Marine transportation services mainly focussing on
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FRIDAY 08TH MARCH 2012 C38FN 2012-2013 CORPORATE FINANCIAL THEORY WORDCOUNT: 2874 Abstract This essay will discuss the net present value (NPV)‚ payback period (PBP) and internal rate of return (IRR) approaches for a project evaluation. It is often said that NPV is the best approach investment appraisal‚ which I why I will compare the strengths and weaknesses of NPV as well as the two others to se if the statement is actually true. Introduction To start of‚ the essay will attempt to explain the theoretical
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Running head: A COMPARISON OF EVA AND NPV A Comparison of EVA and NPV (discuss the differences and similarity of EVA and NPV; why would companies choose to adopt EVA‚ implementation issues; chronicle the implementation experience of EVA on a real life company). 1 A COMPARISON OF EVA AND NPV 2 A Comparison of EVA and NPV (discuss the differences and similarity of EVA and NPV; why would companies choose to adopt EVA‚ implementation issues; chronicle the implementation
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MIRR VS. IRR Charles Beale Ashford University Business 650 Managerial Finance Professor Rick Kwan September 17‚ 2012 The Modified Internal Rate of Return is an underused measure for selection of projects that a company can choose because it is more effective at dealing effectively with periodic free cash flows that develop from the time that an asset is purchased through its life to the point where it is sold‚ ranking projects and variable rates of return through
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Keystone XL Pipeline A proposed oil pipeline project will have the capacity to transport thounsands of barrels of crude oil to refineries in Oklahoma‚ Illinois‚ and the Gulf Coast of Texas. The Keystone XL is a 1‚711-mile pipeline delivering Canadian crude oil to United States oil markets. This project is a response to the market demand for heavy crude oil in the Unites States. The pipeline will also be used to transport crude oil to the Cushing tank farm in the Midwest region. Many refineries
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Keystone XL Pipeline As controversy continues to rise‚ political and moral disputes encompass the decision to construct the extension of a tunnel containing a composition of today’s most beloved resource‚ and what has been referred to as “black gold” by the Arabs during the 20th century oil boom. The Keystone XL Pipeline would potentially transport thousands of barrels of oil from its source in Alberta‚ Canada‚ to refineries throughout the Midwest and Gulf Coast region of the United States. The
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[February 3 2011] Analysis of the future | Fast-Food industry The fast food industry in Canada is like no other in the world. Canada has long been a country of indulging and not caring about consequences. Stats Canada published that in 2004‚ 23.1% of the Canadian population was overweight. It has also been noted that the obesity rate seen a sharp increase during 1978 to 1980. The fast food industry did begin in the early part of the 1950’s‚ but didn’t truly take off till the 1980’s. In
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Pitney Bowes Summary Pitney Bowes (PBI) was founded in 1920 when Arthur Pitney’s American Postage Meter Company merged with Walter Bowes’ Universal Stamping Machine Company. Pitney Bowes is headquartered in Stamford‚ Conn. and employs more than 30‚000 worldwide. The company has been listed on the New York Stock Exchange since 1950 as NYSE: PBI. Today‚ PBI offers a broad array of software‚ hardware and services in more than 100 countries‚ serving 2 million customers. PBI provides mail processing
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Which of the following PBOs will you coordinate with during sustainment? | | While preparing for deployment‚ you receive split hand receipts from the PBO. What should you direct sub-hand receipt holders to do? A. Conduct deployment inventories of all equipment identified for deployment. During the post-deployment phase‚ who do you coordinate with to deactivate all derivative UICs and DODAACs? A. PBO What should you direct your Supply Sergeant to do upon receiving the deployment‚ LBE‚
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