CORPORATE VALUATION (Valuasi Korporat) Telah disadari bahwa corporate valuation merupakan alat manajemen yang semakin mendapat tempat sentral dalam pengambilan keputusan bisnis korporat. Alat ini amat berguna baik bagi outside maupun inside investor. Outside investor menggunakan alat sebagai sarana analisis yang akan memberikan masukan untuk keputusan beli‚ jual atau memegang suatu aset. Sedangkan inside investor menggunakannya untuk mengevaluasi pilihan-pilihan strategi bisnis dan
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TIME VALUE OF MONEY Time value of money refers to an individual preference of a given amount of cash now rather than the same amount at some future time. The reasons why an individual would prefer cash now: i) Subjective preference for present consumption – one may prefer present consumption over future consumption of goods and services because of the urgency of present wants or the risk of not being in a position to enjoy future consumption. ii) Availability of investment opportunities –
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Question 1: 2D1-LS02 Which of the following items is not an example of a capital expenditure? A ventilation system upgrade for EPA compliance. Project bonuses paid to employees. Purchase of a new assembly machine that will cut labor and maintenance costs. Purchase of a new computer server for the research and development group. Long-term capital budget expenditures are often grouped in one of the following categories: new machines and equipment intended for expansion‚ replacement of existing
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Capital Budgeting Essay (Derived from Chapter 17: Long-Term Investment Analysis) Title: The Lorie-Savage Problem BUS 505 – Multinational Economics of Technology Table of Contents 1.0 Introduction – Lorie-Savage Problem 3 1.1 Thesis Statement 3 2.0 Supporting Research 4 3.0 Conclusions and Recommendations 6 References 7 1.0 Introduction – Lorie-Savage Problem The Lorie-Savage problem is a problem introduced in 1955 that addresses the issue in how to allocate capital (or resources)
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CAPITAL BUDGETING PROBLEM BMW Bike is considering building a new plant. Juan Optimist‚ the company’s marketing manager‚ is an enthusiastic supporter of the new plant. Mila Pessimist‚ the company’s chief financial officer‚ is not so sure that the plant is a good idea. Currently the company purchases its skateboards from foreign manufacturers. The following figures were estimated regarding the construction of a new plant. Cost of plant 4‚000‚000 Annual cash inflows 4‚000‚000 Annual cash
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CAPITAL BUDGETING FOR MULTINATIONALS 13.1 INTRODUCTION Although the original decision to undertake an investment in a particular foreign country may be the outcome of combination of strategic‚ behavioural and economic considerations‚ choice of a specific project within a particular product-market posture calls for evaluation of its economic feasibility. For this purpose‚ capital budgeting exercise has to be done. A firm should deploy funds in a project if the marginal revenue obtained there from
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TOPIC: CAPITAL BUDGETING IN MNC’s INDEX 1. Meaning of Capital Budgeting …………………. 3 2. Nature of Capital Budgeting …………………….3 3. Procedure of Capital Budgeting………………….3 4. Significance of Capital Budgeting ………………5 5. Basics of Capital Budgeting……………………..6 6. Alternative Capital Budgeting Framework……....8 7. Issues in Foreign
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The possible impact of university corruption on customers’ ethical standards Merlin Stone1 and Michael Starkey2 Correspondence: Merlin Stone‚ The Customer Framework‚ Lily Hill House‚ Lily Hill Road‚ Ascot RG12 2SJ‚ UK. E-mail:merlin.stone@thecustomerframework.com 1is Head of Research at The Customer Framework. He is author or co-author of many articles and 30 books on customer management. The UK’s Chartered Institute of Marketing listed him in 2003 as one of the world’s top 50 marketing thinkers
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Capital Budgeting Methods and Cash Flow Estimation Tasty Foods Corporation (Part A) November 5‚ 2012 Executive Summary: Tasty Foods has seen phenomenal growth throughout its lifetime in large part due to a continuous development of innovative new products. Although prosperous for Tasty Foods from its birth‚ this is a business initiative that in the past years‚ Tasty Foods has not maintained. Consumers are shifting towards a more health conscious lifestyle and until now Tasty Foods has not presented
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Capital Budgeting Scenario Proposal A: New Factory A company wants to build a new factory for increased capacity. Using the net present value (NPV) method of capital budgeting‚ determine the proposal’s appropriateness and economic viability with the following information: • Building a new factory will increase capacity by 30%. • The current capacity is $10 million of sales with a 5% profit margin. • The factory costs $10 million to build. • The new capacity will meet the company’s needs for
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