Develop costing methods and a set of forecasts of future

Assignment Help Other Subject

Reference no: EM132567591

Assignment Case Study - Canada Hardware

It is January 1, 2018. You are a Senior Analyst at Canada Hardware Inc. (CHI), one of the top hardware, sports, and apparel providers in Canada with hundreds of stores across Canada. The CEO of Canada Hardware, Tony Stark, has reached out to you to draft a report to evaluate two investment proposals, building on your analysis from Assignment 1.

Purpose

For this case approach, you will demonstrate your ability to develop costing methods and a set of forecasts of future cash flows for two proposed investment projects. You will also be required to identify the cost of financing through the issuance of bonds.

How to Proceed

Building on your analysis and proposal from Assignment 1, develop your investment proposal business case draft:

1. Create a title page with the project proposal names and author identification. 2.
3. Calculate the bond yield to utilize as your required return. 4.
5. Prepare a summary narrative (i.e., a detailed description) of each proposal with detailed elements on the initial investment as well as the costs/revenues over the life of each of the projects. Identify which revenues and costs are relevant to your analysis, and which costs are irrelevant. Identify the time horizon for each investment.6.
7. Calculate the after-tax cash flows during the life of each of the projects. Be sure to identify the total costs of ownership and deduct those costs from the benefits to arrive at the net cash inflow per year.8.
9. Utilizing the after-tax cash flows from Part 4, evaluate each investment proposal utilizing the following criteria (unless directed otherwise):
1. changes in payments from beginning of period to end;
2. Payback;
3. Discounted payback;
4. NPV;
5. Profitability index.10.

11.Clearly indicate whether any of the above criteria support each of the project proposals, and what the company should ultimately decide to do.

Format for Submission
• Your report narratives may be done in Word or Excel, but calculations and tables of values must be prepared in Excel with the amounts derived from actual formulas that use your variables, rounded to four (4) decimals or lower.
• The Excel tab worksheet must be print and presentation ready, formatted to print in 2 to 3 pages without page fragmentation of equations or tables between pages.
• It is permissible to break your report down using the questions listed above as headings.

Attachment:- Case Study - Canada Hardware.rar

Reference no: EM132567591

Questions Cloud

Discuss concepts and importance of CRM : Discuss the concepts and importance of CRM and The 2&7 Tool as both are applied to the fire service.

Hazardous material incidents require keen observation : Hazardous material incidents require keen observation and a cautious approach, as many hazardous materials may not be properly identified

Improve diversity in your organization : How have you worked to improve diversity in your organization?

Dyslexia research paper : Extensively research a topic related to disability (Dyslexia) that we have not covered in class, or that you would like to study in-depth.

Develop costing methods and a set of forecasts of future : Develop costing methods and a set of forecasts of future cash flows for two proposed investment projects. You will also be required

Cognitive and social-cognitive theory : Review the Learning Resources, focusing on theorists, cultural considerations, assessments/interventions, limitations, and unique aspects of cognitive

Determine the torque if the speed is 210 rpm : Two bearing of 150 cm width are used. The viscosity of the oil is 22 Centi Poise. Determine the torque if the speed is 210 rpm.

Estimate what is the weighted average contribution margin : What is the Weighted Average Contribution Margin? (Round to the nearest cent). What is the breakeven point in units and dollars?

Determine the average value of bulk modulus : At a certain depth where the pressure was 900 bar the density was measure as 1065.43 kg/m3. Determine the average value of bulk modulus.

User Account

All Pages