We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Strategic Financial Management 2 - Coursework Example

Comments (0) Cite this document
However, it may decide to accept the same project if positive NPV is produced after proper adjustments are made, based on facts in the case study…
Download full paperFile format: .doc, available for editing
Polish This Essay96.9% of users find it useful
Strategic Financial Management 2
Read TextPreview

Extract of sample
"Strategic Financial Management 2"

Download file to see previous pages Question one. Calculate the adjusted present value (APV) for the project, correcting any errors made in the net present value estimate above, and conclude whether the project should be accepted or not. Show all relevant calculations. (25 marks)
Before any attempt should be made to prepare the adjusted present value of the proposed project, Rattle Co must carefully study how the given projected cash flow statement for four years was made, to know where some should remain because they are already correct or whether they need further adjustments. When the needed adjustments are known, the framework is established to do the same with each item in the prepared cash flows, asking whether it should be adjusted or not.
Starting with the revenue, it appears that one critical issue would be whether it should be presented with inflation or net of inflation. The answer would depend on what discount rate is used. If the discount rate is with inflation, then the revenue must include the inflation. In the case facts, the inflation was given however, if the discount rate is used with the real rate, i.e. not the nominal one, then presenting the net of inflation of the inflation rate is the proper thing. The 8% inflation rate increase for revenues and 4% inflation rate increase for cost of sales become irrelevant.
Working capital requirements appear not to be reflected in the given cash flow. These need to be determined, as they are a factor in any decision. A business cannot operate without working capital. Since the amount of working capital at the beginning of each year is 20% of the forecasted revenue per year, just multiply each given sales figure per year, then it is possible to generate a working capital requirement per year.
As computed in the revised and adjusted projected cash flow in Appendix A, the working capital amounts come to £4,606,000, £7,320,000, £9,814,000 and £5,428,000 for ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Strategic Financial Management 2 Coursework Example | Topics and Well Written Essays - 3000 words”, n.d.)
Retrieved from https://studentshare.org/business/1685596-strategic-financial-management-2
(Strategic Financial Management 2 Coursework Example | Topics and Well Written Essays - 3000 Words)
“Strategic Financial Management 2 Coursework Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/business/1685596-strategic-financial-management-2.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Strategic management
Ferrari came to the point of creating elegant handling and power advantage of the engine. This remarkably created a great impact on the team’s performance considering that the other teams are trying to come up with highly advanced or revolutionized engine design in order to be a cut above the other.
6 Pages(1500 words)Coursework
Strategic management
The perception of strategic management is referred as the process of decision-making by analysing certain organisational aspects for gaining sustainable competitive position. It plays a major role in the business development of a particular organisation (Griffith University, 2002).
8 Pages(2000 words)Coursework
Strategic financial management
That is, the NPV can be determined using the formula thus: The investment decision criteria under the NPV approach is to accept a project with a net present value that is
12 Pages(3000 words)Essay
Strategic Management
Because of the well developed capability of communication and digital networking, there has been a free flow of information across market around the world. Armed with the easy access to information and technology, consumers are becoming more
12 Pages(3000 words)Coursework
Strategic Management Accounting
The findings obtained accordingly reflect that proper strategic decision and market research were the key roles of the business. In the case scenario provided with regard to Fransoko,
8 Pages(2000 words)Coursework
Strategic Analysis & Planning 2
Whilst BA currently sustains over 150 destinations, both short- and long-haul, the company continues to lose market share against other airlines. BA currently boasts 47 percent market share, however with new price competition, BA has a difficult time
12 Pages(3000 words)Coursework
Strategic Financial Management - Coursework one
These factors are the interests of stakeholders, and shareholder value maximization (Crane, 2008). For instance, the company has to carefully analyze the governance objective that it has to follow, that is, maximizing the values of the
8 Pages(2000 words)Coursework
Strategic Financial Management
Currently, the company has managed to establish approximately 950 outlets (Tran 2005, 6), making one of the fastest growing businesses of its kind. In addition to this chain of pubs, the company also owns and operates Llodys No. 1 chain, as well
8 Pages(2000 words)Coursework
Strategic Financial Management
However, it is essential that business managers strive at achieving the vision and mission of the business through attaining the set goals and objectives. Generally, firms often have various
8 Pages(2000 words)Coursework
Strategic Financial Management 2
It further plans to use of 100% debt financing for the project. This paper will attempt to help Rattle Co in making a decision by answering at least four
12 Pages(3000 words)Coursework
Let us find you another Coursework on topic Strategic Financial Management 2 for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us