Reference no: EM131153379
Risk Methodologies Power Point 8-12 slides with speaker notes
Apix is considering coffee packaging as an additional diversification to its product line. Here's information regarding the coffee packaging project:
• Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
• Project and equipment life: 5 years
• Sales: $27 million per year for five years
• Assume gross margin of 50% (exclusive of depreciation)
• Depreciation: Straight-line for tax purposes
• Selling, general, and administrative expenses: 10% of sales
• Tax rate: 35%
Assume a WACC
Should the coffee packaging project be accepted? Why or why not? Compute the project's IRR and NPV.
In addition, answer the following questions:
• Do you believe that there was sufficient financial information to make a solid decision on what to do?
• Was there further financial information that you required that was not provided to you?
• What financial figure do you believe was the determinant to your decision and why?
• How would you be able to apply this particular financial information to other situations?
• Discuss risk methodologies used in capital budgeting.
|
Some information that should be found in big data databases
: What is some information that should be found in big data databases? Why has big-data analytics become so popular with companies like Kraft Foods, United Airlines, and Ford Motor Company? How do you think that these companies will use big data in the..
|
|
Determine the company resources and capabilities
: Determine the company's resources, capabilities, and core competencies. Analyze the company's value chain to determine where they can create value using the resources, capabilities, and core competencies discussed above
|
|
Behavioral targeting-your privacy is the target
: Do you wonder why you start seeing display ads and pop-ups just after you’ve been searching the Web for a car, a dress, or cosmetic product? Well, you’re right: So how common is online behavioral tracking? Why is behavioral tracking such an important..
|
|
Determine how to calculate investments
: Determine how to calculate investments/dividends/interest on this 990 form as well as - Long term and short term assets
|
|
Discuss risk methodologies used in capital budgeting
: What financial figure do you believe was the determinant to your decision and why? How would you be able to apply this particular financial information to other situations? Discuss risk methodologies used in capital budgeting.
|
|
Clinic system is primary care system
: The ABC Clinic System is a primary care system with 200 employees with various levels of professionals, including doctors, nurses and clerical staff. The clinic system is experiencing a high rate of turnover, losing employees to another large clinic ..
|
|
Information-technology-intensive
: Suppose a computer virus shuts down Internet-based computing and, thus, effectively reduces the amount of (information-technology-intensive) capital available to firms in the United States. According to the standard closed-economy classical model we ..
|
|
How would the investment recommendation change
: Assume that the client's risk index could be increased to 0.055. How much would the yield increase, and how would the investment recommendation change?
|
|
Differentiation between foreign branching-equity investment
: Differentiation between foreign branching, equity investment and wholly owned subsidiaries. In addition, what are some risks firms face with a foreign subsidiary strategy.
|