International Project Financing In partial fulfillment of the degree of Master of Finance & Control Submitted by: Deepti Jayam Roll no 1830 Department of Financial Studies University of Delhi South Campus Internal supervisor: External supervisor: Dr. V. K. Vasal Mrs. Chetna Khuller Department of Financial Studies Head Treasury and Finance University of Delhi South Campus NIIT Lt. New Delhi. New Delhi
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capital budgeting analysis compares cash inflows and cash outflows instead of net income calculated using the accrual basis. Capital projects are typically evaluated using quantitative analysis and qualitative information. There are two capital budget evaluation processes that take into consideration the time value of money Net Present Value (NPV) and the Internal Rate of Return (IRR) (Edmonds‚ 2007). Time value of money is necessary when comparing possible business investments that have different
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Here is how to project your cash flow. Estimating the incremental cash flow requires from the investment itself‚ acquiring and disposing of the investment’s assets and the cash flows from the operating the investment. Those affected by the revenues‚ expenditures‚ depreciation and taxes. The bottom line of the cash flow is that a set of net cash flow for each period associated with investment decision. After estimating cash flow which arises from an investment opportunity‚ the techniques apply
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multiples I N T R O DU C T I O N T O VAL U AT I O N Transaction multiples 1 What does the term “value” mean?1 The Oxford Dictionary definition “the material or monetary worth of a thing; the amount at which it may be estimated in terms of some medium of exchange or other standard of a like in nature” It is important to note that there is no general statutory definition of value Valuation is an art‚ not a science2 I N T R O DU C T I O N T O VAL U AT I O N In practice‚ we
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Maximization: Wealth maximization has been accepted by the finance managers‚ because it overcomes the limitations of profit maximization. Wealth maximization means maximizing the net wealth of the company’s share holders. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company. There are some arguments which are superior in wealth maximization: Wealth maximization is based on the concept of cash flows. Cash flows are a
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evaluation process except a company’s a. board of directors. b. capital budgeting committee. c. officers. d. stockholders. 28. Most of the capital budgeting methods use a. accrual accounting numbers. b. cash flow numbers. c. net income. d. accrual accounting revenues. 29. The first step in the capital budgeting evaluation process is to a. request proposals for projects. b. screen proposals by a capital budgeting committee. c. determine which projects are worthy
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Capital Budgeting Capital Budgeting is done because companies need to make Acceptance/rejection decisions for buying fixed assets etc. Features of fixed assets : Investments upfront and returns take a long time. Risk is long term Expenses are indivisible and lumpy Ex. If HUL wants to put up a synthetic detergent plant of 50 cr. Rs. -> by spending 25 Cr. Rs.‚ the plant wont be operational at half the capacityS The Capex decisions are irreversible Projected P&L : Less Sales Raw Materials
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I will specifically focus on analyses of the project’s free cash flows (FCFs)‚ weighted average cost of capital (WACC) and net present value (NPV). With a sensitivity analysis‚ it can help us to observe how change in some key project variables would make the project stronger and weaker. This report can provide efficient information for Hansson to evaluate the potential value of this investment and help him to make a final decision. HPL and private label personal care industry HPL is a midsize
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The Coca-Cola Company (NYSE: KO) is an American multinational beverage corporation and manufacturer‚ retailer and marketer of non-alcoholic beverage concentrates and syrups.[2] The company is best known for its flagship product Coca-Cola‚ invented in 1886 by pharmacist John Stith Pemberton in Columbus‚ Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage‚ Coca-Cola currently offers more
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Table of contents: Page no. 1. Introduction 1 2. Investment appraisal 2 3. Payback method 3 4. Present value (PV)‚ future value (FV) and net present value (NPV) 5 5. Project 1 6 6. Comparing projects 11 7. Conclusion 12 8. References 13 9. Bibliography 14 Introduction: In 21st century business is much more developed and competitive as well with the presence of so many competitors
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