Case Study

Jordan Poulsen Myntillae Nash Introduction to Financial Management Prof. Crawford Questions for Sheetb finale & Halyard, Inc. 1. Project the silver flows for the dark blue duffel essay regard for years 0 through with(predicate) 5. Be sure to take into fibancy the three master(prenominal) move of a project valuation: initial costs, one-year notes flows, and ending honor. As you do so, make the pursuance assumptions (in appendix to those already mentioned in the case): a. The forecasts in Table 8-6 argon accu order, chuck out that depreciation should be calculated match to the MACRS schedules. b. The $1.5 million volunteer for the let down and plant represents the holdings true current market value (i.e., what it could be sold for) and the best envision of its market value in 5 years. For initial costs, hark back to include funds flows for the cost of the land, plant, and machinery. The opportunit y cost of the land should be include as part of your initial costs. (Note that if S&H opted to contend the land, in that respect would be task consequences associated with the sale.) withal remember to account for coronation in working(a) capital. For terminal value, remember to include cash flows for selling or paper off the land, plant, and machinery at the finishing of the project. (Dont forget the tax consequences.

) Also remember to account for the freeing up of working capital at the end of the project. Note: Although you could do these projections with pencil, paper, and c alculator, you should do this on an Excel sp! readsheet. grab the spreadsheet with your projections to your report. 2.What is the net present value of the navy duffel canvas project? What is the IRR of the project? establish on the assumptions that have been made, should S&H accept the project? NPV= 733 IRR= 6.8% Yes we would because the NPV is positive and also there is a 6.8 return rate on your initial investment 2. Perform some sensitivity analysis...If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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