Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider the following information.
Question: In order to satisfy a sharp increase in demand, WES is evaluating investing in one of two "mega warehouse" projects in Australia (called Project A and Project B). WES has already identified two existing warehouses that might meet their needs. In order to mitigate risk and assess these facilities, WES asked Axiom Ltd to conduct technical due diligence. Axiom is asking $200,000 as a fixed fee for its consulting services.Project A has an initial outlay of dollars $250 million and Project B has an initial outlay of $185 million.Project A will generate additional revenues of $85 million starting at the end of year 1 until the end of year 10. It will also incur additional working capital expenses of $10 million immediately, this working capital will be recovered at the end of the project.Project B will generate additional revenues of $65 million starting at the end of year 1 until the end of year 10. It will also incur additional working capital expenses of $12 million immediately, this working capital will be recovered at the end of the project.The operating costs of both projects will be 40% of the revenues from years 1 to 10. Both investment projects will be depreciated on a straight line basis over ten years to zero book value. WES has estimated that the mega warehouse can be sold at the end of year 10 respectively for $25 million (Project A) and $10 million (Project B). The tax rate is 30%. All cash flows are annual and are received at the end of the year. The weighted average cost of capital for both projects is 7%.a) Calculate the FCFs for each project. b) What is the NPV for each project? c) What is the discounted payback period for each project?d) What is the IRR for each project? e) Assume that the risk of investing in these mega warehouses is higher than the overall risk of the company. What would happen to the discount rate and consequently NPV of the two projects if this was the case? Why?f) Suppose that WES has a payback rule of 8 years. Based on your analysis in b), c) and d) which project should be chosen? Justify your answer with reference to theory. What other factor might affect the final decision?
Write an 3-5 page essay about Women's Suffrage (through 1865). The essay should be 3- 5 word processed, double-spaced pages in 12 point Times New Roman or Arial font.
Do you think that the rebellions after the Protestant Reformation (such as the German Peasants Rebellion or the take-over of Munster)
Explain the components of Wilson's New Freedom Program and how he moved more closely to Teddy Roosevelt's ideas of New Nationalism
Describe the conflicts over Reconstruction. Make an argument that explains how the way the war ended, the death of Abraham Lincoln
During research process,if search engines each have their own focus? For instance, does one bring up mostly popular culture references, while another
1.summarize events between the u.s. and at least one of the countries you wrote about in the first paper since the
Evaluate the strengths and weaknesses of progressivism. In what ways were mobilization and the war effort a fulfillment of the progressive legacy? In what ways did the war deny the basic tenets of progressivism?
How does the the story of Papatuanuku and Ranginui explain the relationship between Hawaiians and their gods/spiritual world?
Discuss how cultural and language barriers can affect the implementation of an effective hazard communication program.
Describe how some black loyalists made their way back to Africa - Describe the role and contributions of the following: Crispus Attucks, Phillis Wheatley, BenjaminBanneker, or Joshua Johnston. Second, of those listed above which individual(s) in yo..
The concept of sacred space is particularly important. What makes a sacred place?
What available evidence backs up the claim that that person or persons had the motive and opportunity to carry out the assassination?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd