Free

Capital Budget - Case Study Example

Comments (0) Cite this document
Summary
Leland Forrest could consider the directives of Rolland to repress the findings of the net present value analysis keeping in view the following ethical standards and their relevance to the situation.
Integrity: Rolland’s decision not to disclose the information is…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.9% of users find it useful
Capital Budget case study
Read TextPreview

Extract of sample "Capital Budget"

Instant Dinners Inc. Instant Dinners Inc The Net Present Value obtained on the basis of the revised estimates is negative $590,280 (See Attached Excel File).
2. Leland Forrest could consider the directives of Rolland to repress the findings of the net present value analysis keeping in view the following ethical standards and their relevance to the situation.
Competence: The directive of Rolland to repress findings of NPV analysis is against this standard. It has negative implications for the business.
Confidentiality: Leland needs to maintain confidentiality. However, she cannot hold back information that has negative implications for the business from the board of directors
Integrity: Rolland’s decision not to disclose the information is challenging integrity of his position in the company. It could raise a conflict of interests as Rolland wants to pursue the investment despite its negative implications for the business.
Creditability: It is Rolland’s responsibility to communicate the information derived from the analysis to the board of directors so that they could make decision that is in the best interest of the company.
3. Leland Forrest to maintain professionalism and perform her duties according to the professional standards. The information presented by Leland is based on reasonable revised estimates about the possible investment in the conveyor belt. Therefore, it is the professional obligation of Leland not to hide the analysis report and disclose the outcome of NPV analysis. The analysis report has implications for the company and its decision to go ahead with the purchase of the conveyor belt. Leland must not hesitate to disclose the information to the board of directors, which is responsible for making strategic decisions. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Capital Budget case study Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1698566-capital-budget-case-study
(Capital Budget Case Study Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/finance-accounting/1698566-capital-budget-case-study.
“Capital Budget Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1698566-capital-budget-case-study.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Capital Budget case study

Capital Budgeting: Math Case Study (Answering questions)

..., an adjustment would have to be made either in salary structure or designations. 6. I agree with the given statement. Capital budgeting plays a very important role in taking a firm ahead and making it profitable. For growing any business, new projects are needed whether in manufacturing or services industry. However, there is no use of taking projects unless they are profitable in a medium to long term. Capital budgeting gives managers the power to evaluate the profitability of a project. However, the most prominent use of capital budgeting is in comparison of two or more projects. In real life, a manger has a number of options before...
7 Pages(1750 words)Math Problem

The Capital Budget

...? The Capital Budget and The Capital Budget Payroll Forecast The benefits of increasing the council’s employee compensation include, most importantly, motivation. This will encourage the employees to become more productive. The management should however keep in mind that compensation should not be overused as a motivator because what really motivates good employees is the ability to achieve successful completion of their projects. It will also be hoped that this increase will enhance team cohesion when awarded to teams, hence increasing the productivity level. Furthermore, better compensation increases the employee morale, generally, given that the increase is awarded in...
4 Pages(1000 words)Research Paper

Capital budget purchase

...? Capital Budget Capital Budget for the Latest Electronic Health Record The capital budgetis very crucial for any organization that wants to make purchases or long term investment for assets such as building, equipment and vehicles. It differs with operating budget whose main objective is to cater for the operating expenses of the organization such as payment of employee salaries which is recurring and happens weekly, fortnightly or monthly (Caren, 2013). As the manager for the surgery department in our hospital, I decided to go for the latest Electronic Health Record after a thorough research that gave me many priorities. This item was...
4 Pages(1000 words)Term Paper

Case study Case Study

...Assignment (Answers in Bold) Part A The following questions were answered based on the case of: Peter Smythe v Vincent Thomas [2007] NSWSC844 (3 August 2007) Available at: http://www.austlii.edu.au/au/cases/nsw/supreme_ct/2007/844.html. Question 1: In what court was the case heard (1 mark) The case was heard in the New South Wales Supreme Court. Question 2: Name the judge and explain his title. (2 marks) The judge is named Rein, and Rein is an administrative judge as evidenced by the title AJ. Question 3: Name the plaintiff and defendant and their counsel. (4 marks) The plaintiff is Peter Smythe and the defendant is Vincent Thomas. The plaintiff's counsel is B. Kasep,...
6 Pages(1500 words)Case Study

Working Capital Case Study: Target Corporation

...in operational efficiency. Operating Cycle = Inventory Period + Accounts Receivable period – Accounts payable period. Thus, Operating Cycle for the period ending 2008 is 249 and for the period ended 2007 is 548. II. RECOMMENDATIONS FOR FINANCIAL DECISIONS THE ORGANIZATION COULD PURSUE BASED ON ITS WORKING CAPITAL SITUATION: The working capital(Current Assets – Current Liabilities) of the company has marginally reduced from $ 7124 for the year 2007 to $6976 for the year 2008. The current ratio(Current Assets- Current Liabilities) of the company has improved from 1.60 for the year 2007 to 1.66 for the year 2008. The recommendations for improving the Working capital situation are: 1) The...
3 Pages(750 words)Essay

Case study Case Study 6

...Case Study 6 – Examining the Role of the Program Goals and Objectives on Evaluation Process With the sample shown for the case of eleven out of seventy smoking participants who quit with no relapse during the evaluation, the smoking cessation approach, while within hours of work, reflects the measure of the feasible extent to which desired results may be achieved and exist with stability in relation to meeting the standards of the program objectives. Since the provision is offered to target an improved quality of life and to extend its length, such goal is to be detected not as a mere end but in the course of each stage at which progress is anticipated (Posavac). The trial period of the...
3 Pages(750 words)Essay

Capital Budget. Disney park in River County

...al Affiliation) Capital Budget Opportunity Disney park in River County was abandoned a couple of years agoand has since not been renovated. This park when invested upon can be a source of income to River County and it is for this reason that this capital budget explains how certain assets should be invested on it to bring it back to life (Holland, Jeffrey & David, 2008). Objectives The first objective is to raise enough finances within a period of one year that will assist in purchase and acquisition of the following: 2 Garbage trucks $150, 000 each totaling to $300, 000 Bulldozer $240, 000 3 lawn riding mowers $16, 000 totaling to $48, 000 Construction of...
3 Pages(750 words)Research Paper

Global Human capital (case study)

...HRM Policies and Practices: A Case Study of ITOCHU. Summary Having been founded in the year 1858, the ITOCHU hasrisen over time to become a general trading company (sogo sosha) engaging in different lines of business. It currently is engaged in both local and international trade with different product lines; communication and information technology products, textile, oil & energy products, machinery, chemicals metal, human food products and many others. Furthermore, the company made a diversified investment portfolio, with interests in construction, insurance, ware-housing, and finance etc. This is a testimony of business success and strategic investment. As part of business strategy in the early...
2 Pages(500 words)Essay

Capital Budget

...Capital budget River County is highly populated. A lot of people living in the county have paid the city council to collect their garbage. To meet the expectations of the County members who have paid for garbage collection, trucks must be purchased. I have included two garbage trucks in my budget. The garbage trucks go for a total of $240,000. This amount is enough compared to the fact that the expected lifetime of the two trucks is ten years. This budget, therefore, minimizes on any other expenditure for garbage trucks in the next decade. The trucks will guarantee faster garbage collection. The trucks will also ensure that we can handle all requests for garbage...
3 Pages(750 words)Assignment

Capital Budget Model

...Capital Budget Model Introduction Capital budgeting is considered a planning process utilized in determining whether the long-term investments of an organization, such as research development projects, new machinery, new products, new plants, and replacement machinery are worth getting funds through the organization’s capital structure (Baker, Singleton &Veit, 2010). This planning process involves using past long-term investments of an organization in order to forecast the types of investments that are worth investing to achieve business objectives and goals. Capital budgeting is important for several reasons. First, when making the decision to procure assets, managers are required to forecast the revenue of the assets over... their...
10 Pages(2500 words)Term Paper
sponsored ads
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.

Let us find you another Case Study on topic Capital Budget case study for FREE!

Contact Us