Prepare a summary narrative of the proposal

Assignment Help Other Subject
Reference no: EM132077231

Assignment: Case Study - Leasing

Purpose

Under this case approach, you will demonstrate your ability to undertake a detailed analysis to evaluate the buy versus lease options for a set of forecasted future cash flows from your proposed investment project. You will also be required to calculate the weighted average cost of capital (WACC). A supplementary break-even analysis is required.

How to Proceed

Building on your analysis and proposal from Assignment 2, evaluate your investment proposal business case to determine if there is a net advantage to leasing: 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.

1. Create a title page with your equipment Buy versus Lease proposal name and author identification.

2. Prepare a summary narrative of the proposal with detailed elements, which make up the combined initial cost under a loan-supported purchase at 7% interest versus periodic lease payments.

3. Describe the five-year economic life of the asset to explain the rationale for the uneven future cash inflows on an after tax basis Be sure to identify rationale for total cost of ownership, CCA, tax shields, working capital, and 20% residual value for arriving at the net cash flow per year.

4. Develop an incremental financing approach to calculate the WACC. You will obtain the current cost of debt from the notes to the financial statements, as per Assignment 2, for up to 60% of the financing, and utilize 6% preferred shares for the remaining 40%. The preferred shares are currently selling at par.

Verified Expert

This is an excel based assignment where the practical, as well as the theoretical matter, needs to be pen down in the excel itself. The part is a continuation of earlier based assignment and deals with understanding concepts related to leasing and applying the concepts in a practical example to solve the whole equation.

Reference no: EM132077231

Questions Cloud

How do the cloud services impact field of digitalforensics : How do the cloud services impact the field of digitalforensics and how would a forensic analysis will be different than one where you are only dealing
Advantages and disadvantages of building a system : List some of the advantages and disadvantages of building a system from the ground up using traditional and agile methodologies.
How did the environment-culture surrounding the buyer : How did the environment/culture surrounding the buyer (Russian company) impact the risks that were identified on this project?
How that film represents contribution to field of cyber law : Using a Microsoft Word document, please review movie ( War Games (1983) ) and tell how that film represents a contribution to the field of Cyberlaw.
Prepare a summary narrative of the proposal : Prepare a summary narrative of the proposal with detailed elements, which make up the combined initial cost under a loan-supported purchase
Would the image of change affect the diagnostic model used : Would the image of change affect the diagnostic model used? Explain why and how, or why not with examples based on the readings thus far in the course.
What are the potential consequences of not accessing : What are the potential consequences of not accessing the technical risks associated with an information systems development project?
Identify key elements of building an effective caatt system : Identify the key elements of building an effective CAATT system. Elaborate on two (2) challenges faced when designing an effective CAATT system.
What does it mean from a technical standpoint : What does it mean from a technical standpoint to say that a network supports IPv6? In other works, what are the critical components and systems that need

Reviews

inf2077231

11/15/2018 1:20:52 AM

I got a perfect work that made me score 9/10 in the assessment exam and it will surely enhance my grades that I had degraded in the previous exam due to incorrect and late submission of the assignment. But this time since it was done by your perfect tutors I was expecting some good marks and hurray I got it. Thanks to you dear team.

len2077231

8/6/2018 12:39:27 AM

Just make everything on 1 sheet of excel If you need assignmnt 1 and 2 i can send you This is the last assignment..and my friend needs really good marks to pass this course..so I recommended you...please do it carefully Please send it before time so that he can review it And he have some time to make changes

len2077231

8/6/2018 12:38:55 AM

Need more description for your costs and revenue - unrealistic cash flows and IRR. Most investment criteria is calculated incorrectly - please review the material. What you have missing: Correct calculations Description and evidence for your cash flows

len2077231

8/6/2018 12:38:29 AM

Bond Calculation 4 Correct and ties into required return used Minor error and ties into required return used Some error and ties into required return used "Incorrect or does not tie into required return used " 4 Investment Criteria Correctly Calculated 16 Correctly calculated with minor errors Mostly correct with reasonable assumptions noted Some errors, with missing assumptions Mostly incorrect, and little or no assumptions included 6 Findings flow from Results 2 Yes Mostly Some Few 1.5 Title Page, Readability of Entire Report, Format, Spelling and Grammar  4 Report is complete with all required elements, easy to follow and contains only minor spelling and grammar errors. Report is substantially complete with most of required elements, easy to follow and contains some spelling and grammar errors. Report is missing some elements; some major spelling and grammar errors that detract from understanding. Report is missing most elements; and incomplete rationale for forecasted cash flows; no TCO noted. Deficient analysis, poor understanding of requirements. Paper is difficult to understand and largely incomplete. 2.5

len2077231

8/6/2018 12:38:23 AM

You will be assessed in accordance with following rubric. The assignment is out of a total of 24 points. Item Max Point Full Points Partial Points Points Complete Initial Cost and Description 4 Multiple elements of initial cost identified and shows it is complete Some elements of initial cost missing but substantially complete Limited elements of initial cost identified Little or no details given on the initial cos 2 Net Cash inflows and TCO Identified 4 Rationale complete for each cash flow including TCO Rationale substantially complete for each cash inflow including TCO Rationale missing for some cash inflow and TCO elements Rationale missing for most of the cash inflows including TCO 2

len2077231

8/6/2018 12:38:08 AM

> 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. > Submit your report file(s) into the Assignment 3: Case Study - Leasing dropbox on UM Learn. > Your assignment must be submitted by the deadline date found in the Course Schedule.

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

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