What are some of the positive and negative impacts

Assignment Help Corporate Finance
Reference no: EM13972633

How to measure the value of a capital budgeting project based on financial measures or formulas. However, certain projects can have significant impacts on a company, both positive and negative, that can't be quantified using a formula. 

Required: 

Your firm is considering closing a plant that employs 5,000 people in a small town of 20,000 people in central Florida. The company will relocate the plant to a metropolitan city of with more than 1 million people. What are some of the positive and negative impacts of this capital budgeting decision? What can the firm do mitigate some of the negative impacts?For example, one negative impact would be the loss of income to 25% of the people in the small Florida town

Reference no: EM13972633

Questions Cloud

Prepare the operating activities section : Prepare the operating activities section of the statement of cash flows using the indirect method.
What is the magnitude of the electric field created : A uniform magnetic field pointing in the positive zdirection fills a cylindrical volume of space of radius Rwhose central axis is the z axis. Outside this region, there is no magnetic field. In (Figure 1) R = 0.27m and the magnetic field magnitude..
Research paper on cloud computing : A research paper on cloud computing. Discuss HPC computing versus HTC computing and What part does computer clustering play
Does valstar have the capacity to accept the special order : Valstar has received a request for a special order of 5,000 five gallon buckets of paint for $125,000 from A1 Construction. A1 Construction is the largest construction company in the metropolitan area and surrounding region.
What are some of the positive and negative impacts : What are some of the positive and negative impacts of this capital budgeting decision? What can the firm do mitigate some of the negative impacts?
What is the magnetic field : An insulating spring constant of 10 N/M attached to the width at the top of the page is stretched .25m by the magnetic force. The lengths are parallel to the sides of the page. What is the magnetic field?
What distance x from the left-hand end of the bar : A uniform metal bar is 5.00 m long and has mass 0.300 kg. The bar is pivoted on a narrow support that is 2.00 m from the left-hand end of the bar. What distance x from the left-hand end of the bar should an object with mass 0.400 kg be suspended s..
Develop a financial plan for the next three (3) years. : Based on your ratio analysis, determine whether the profitability trends are favorable or unfavorable and explain your rationale.
What is the mass of the meterstick : The uniform meterstick above has an object with mass 800 grams hanging at the 15cm mark and an object with mass 350 grams at the 70cm mark. It balances horizontally on a pivot placed at the 35cm mark. What is the mass of the meterstick?

Reviews

Write a Review

Corporate Finance Questions & Answers

  What is the percentage price change of these bonds

Bond J is a 4 percent coupon bond. Bond S is a 11 percent coupon bond. Both bonds have eight years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 4 percent, what is the percentage price chang..

  Craig company has a market value of 100m consisting of 1m

craig company has a market value of 100m consisting of 1m shares selling for 50 per share and 50m of 10 perpetual bonds

  Finding the best sources of finance

Best Hardware is planning financing for 2 activities. The 1st activity deals with the expansion of the business' warehouse to house inventory as demand is increasing.

  What will be the effect of the price increase

Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm's FCF for the year?

  Correlation between the above variables and sales

Create a scatterplot between the variable that you selected in requirement 2 and sales. Properly label your chart - Regression Mastery Problem

  Find the expected return on stock

Suppose the economy recovers next year, analysts expect Stock X return for year to be 20 percent, if the economy does not get better, analysts expect Stock X's return for the year to be -5 percent.

  What are the firms earnings before interest and taxes

If ABC, Inc. has $650,000 in sales and $230,000 in expenses, what are the firm's earnings before interest and taxes (EBIT)? What is the degree of operating leverage at 2,000 units?

  Problem 1calculating returnsnbsp suppose a stock had an

problem 1calculating returns.nbsp suppose a stock had an initial price of 83 per share paid a dividend of 1.40 per

  Finding risk free portfolio

Assume you plan to make a portfolio with two (2) securities: security A and security B. A has an expected return of 35 percent with a standard deviation of 22 percent. B has an expected return of 20 percent with a standard deviation of 9 percent.

  Would you expect the voting stock to sell for a higher price

Investors hope that holders of the voting stock will use their power to vote out the company's incompetent management. Would you expect the voting stock to sell for a higher price?

  1 lois inc has a 1000 par value bond outstanding that pays

1. lois inc. has a 1000 par value bond outstanding that pays 10 percent annual interest. the current yield to maturity

  What is the value of the bonds

What is the value (rounded to one decimal place) of the bonds now if the current market rate for this type of bond is 12%?

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