Predictions of cash flow based on estimated costs

Assignment Help Business Management
Reference no: EM133147778

DutyBoot was a well-established company producing rugged hiking boots. The Board decided to extend the range by launching a 'fashion' hiking boot aimed at female urban dwellers. The rationale was the fast-growing market for 'fashion' sports clothing. A consultant was engaged to carry out the launch and the following tasks were undertaken.

  • Predictions of cash flow based on estimated costs and predictions of market growth and market share
  • Comparison of the risk weighted internal rate of return with the company hurdle rate

After three years the 'fashion boot' was not even close to the financial target and was abandoned. The CEO called a meeting to analyse what had gone wrong and the general feeling was that the failure must have been due to the fickle nature of the fashion market because the consultant had done everything right.

A recently appointed Board member then spoke up and said that while the consultant had done things right the financial analysis on which the project was based was only part of the story and in fact DutyBoot itself had been completely wrong.

Required:

What did this Board member mean?

Reference no: EM133147778

Questions Cloud

How does cultural diversity apply in a workplace : How does cultural diversity apply in a workplace (be sure to show your understanding of the term in your answer)? Cultural diversity is not just a "good thing"
What are some of the issues : What are some of the issues and what needs to happen to tighten up these laws as Canada's are behind those of other nations.
Why accounting is language of business : Discuss and explain in your own words how and why accounting is the language of business
Rising phoenix netflix : What were the largest discrepancies from the Paralympic Games in London 2012 to Rio 2016 in the Rising Phoenix doc on netflix?
Predictions of cash flow based on estimated costs : DutyBoot was a well-established company producing rugged hiking boots. The Board decided to extend the range by launching a 'fashion' hiking boot aimed at femal
Research the sarbanes-oxley act : Research the Sarbanes-Oxley Act of 2002. What are your thoughts on this legislation? What are some of the key aspects of the legislation
Explain the average annual holding costs : How do the average annual holding costs, shortage costs, and setup costs change if the desired probability that a shortage will not occur between the time an or
Determine the company net income and earnings per share : The company has no other debt outstanding at year-end. Determine the company's net income and earnings per share for 2021 and 2022
What are the process of decision making : What are the process of decision making? What are the reasons for the employees leave the organization? What are the determinants of Human Behavior?

Reviews

Write a Review

Business Management Questions & Answers

  Build the measurement question

You need participants to rank five factors that influence people's perception of safety on the job. You should build the measurement question on which type of s

  Description of the algorithm

Post a description of the algorithm that you think would best monitor the disease/condition you selected. Explain which covariates you would include in the algorithm. Finally, explain the limitations of the algorithm and the implications for publi..

  Manager seeking approval to proceed

1. Describe two circumstances in which you would seek advice from legal advisers. Create three specific questions in regard to the need for advice and include t

  Comprehensive learning assessment

Which of the various reasons for resisting change do you believe to be the most common? What are your "top three" in this regard?

  Approach within an organization

Specify at least three (3) approaches for marketing IT's value. Propose (1) method for implementing each approach within an organization. Provide one (1) example of each approach to support your answer.

  Misleading in aspects of global marketing

How can research and development be misleading in aspects of global marketing?

  Family in a western suburb of chicago

Abby left her native land in Eastern Europe to become a nanny for a family in a western suburb of Chicago, Illinois. One of the benefits of her arrangement was that she could attend the community college near her family's residence.

  What is the current share price for the stock

Universal Laser, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year

  State lateral relationship structural arrangement mechanisms

Concept of Lateral Structural Arrangements in Organizations, Lateral Relationship Structural Arrangement Mechanisms

  Write about and reflect upon an ethical issue that has left

You are required to consider a specific personal example from your workplace that will allow you to write about and reflect upon an ethical issue that has left you feeling troubled, maybe asking yourself how and/or why the particular outcome happened..

  What would you recommend and why

These potential suppliers are in countries whose currency is expected to increase against the U.S. dollar. What would you recommend and why?

  Identify two key players in aviation insurance

Identify two key players in aviation insurance and explain each key player's function in the industry.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd