financial model, Corporate Finance

Assignment Help:
Think of any business you would like to open in Lebanon (from small to big project) and prepare a preliminary income statement from five to eight years maximim. Compute the expected sales, variable cost, fixed cost, depreciation by using the straight line method, $0 interest and taxes of 35%). So to finance your project, no debt will be issued and no interest charges too.
Get some basic computations for the capital spending (land, buildings, factories, PPE or property, plant and equipment, etc.). Assume zero salvage value for the capital spending. Straight-line depreciation method to be used and market value is equal to 20% if life of the project is 5 years and 10% if 8 years.
Get some basic computations for the working capital (you can compute it as a fixed percentage of net revenues of 15% to 20%).
Prepare three scenario analyses (basic, worst case and best case).
Prepare a sensitivity analysis by changing different assumptions, once at a time.
Prepare NPV break-even analysis (find Q and/or P) and Accounting Break-even analysis (find Q and/or P).
You are kindly requested to calculate the Accounting BE, the Cash BE, the Financial BE, a targeted NPV, the DOL, DFL, and DTL (found in the last three pages of chapter 11 which you are required to read).
Apply as well the most capital budgeting techinques learned from chapter 9 (accounting average return, payback period, discounted payback period, IRR, PI, NPV Profile, etc.)
The deadline for submitting this Project is on Wednesday, 20 of March 2013.

Related Discussions:- financial model

Financial management, determine the pay \back period for the project.

determine the pay \back period for the project.

1.identify a limited liability company listed in the, Introduction to the c...

Introduction to the company and its business 2. From the information given in the financial statements, calculate the company’s operating and financial leverage. 3. Obtain the info

Avalised bill of exchange, Questions: (a) i. Negotiation of letter...

Questions: (a) i. Negotiation of letter of credit- request to confirming Bank to pay upon handing-over and verification of documents in relation to a confirmed letter of

INVESTMENT DECISION, You are a ceo of a sotware firm that has limited acces...

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

Securitization- technique of bundling and off-loading risks, Question: ...

Question: (a) i. Expected loss= Exposure amount* probability of default* loss given default ii. Positive covenants= covenants that showing the direction to a company. P

Book value of equity, Book Value of Equity: This is the measure used by ow...

Book Value of Equity: This is the measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid

Renowned Cola, corporate finance, Financial Accounting Calculate the market...

corporate finance, Financial Accounting Calculate the market value of Renowned Cola''''s debt at year-end 2005. What is the book value of debt? Why do usually use market or book va

Portfolio duration, how to calculate duration of a portfolio by using the a...

how to calculate duration of a portfolio by using the average maturity, average coupon rate and average yield of maturity?

Illustrate the essential requisites of a promissory note, A promissory note...

A promissory note is an instrument in writing (not being a blank or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money onl

Desccribe the determination of foreign exchange rate, Question 1: (a) ...

Question 1: (a) Show that the pricing of Eurocurrency deposits and loans leads to lower profit margin by Eurobanks compared to onshore banks. (b) What are the factors that

Write Your Message!

Captcha
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