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

Corporate Finance Case (MBA) - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Corporate Finance Case (MBA)"
Theoretical weaknesses of payback period includes: (1) its incapacity to include the time-value of money by giving each dollar the same weight and (2) its non-consideration of cash flow beyond payback period.
1. The computation of NPV for the project starts with the projection of cash flows…
Download full paper
Polish This Essay
Corporate Finance Case (MBA)
Read TextPreview

Extract of essay "Corporate Finance Case (MBA)"

Download file "Corporate Finance Case (MBA)" to see previous pages... Thus, this value net of taxes is added on the eight year cash flow. Lastly, the cash flows are discounted using 16% cost of capital and are added up to come up with the NPV.
b. Since the decision criterion of the company is to accept projects whose payback periods are within six years, this project is viewed to have a good profit potential.
Let us write or edit the essay on your topic "Corporate Finance Case (MBA)" with a personal 20% discount.. Try it now
Investment decision is to accept the project.
c. Different from the simple payback period, the discounted payback requires the cash flows to be discounted. Thus, it is expected that the discounted payback period is longer than the simple one. In this case, the discounted payback is 5.43 years.
3. Two of the conceptual weaknesses of the payback period are the following: inability to recognize the time-value of money by treating each dollar inflow as the same whether they are generated earlier or later in the projects life and its lack of recognition for the cash inflows after the initial investment is recouped. These flaws of the payback period make it inferior to other capital budgeting techniques. For example, because it does not discount cash flow, it is not realistic to use since we know that the value of money depreciates over time. Also, it becomes misleading when assessing projects which have lower cash flows in the early project life and large ones in its later years. The payback period almost always favor projects where the investment can ...Download file "Corporate Finance Case (MBA)" to see next pagesRead More
Cite this document "Corporate Finance Case (MBA)"
  • APA
  • MLA
(“Corporate Finance Case (MBA) Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Corporate Finance Case (MBA) Essay Example | Topics and Well Written Essays - 2250 words. Retrieved from https://studentshare.org/miscellaneous/1508367-corporate-finance-case-mba
(Corporate Finance Case (MBA) Essay Example | Topics and Well Written Essays - 2250 Words)
Corporate Finance Case (MBA) Essay Example | Topics and Well Written Essays - 2250 Words. https://studentshare.org/miscellaneous/1508367-corporate-finance-case-mba.
“Corporate Finance Case (MBA) Essay Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/miscellaneous/1508367-corporate-finance-case-mba.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Corporate Finance: Expansion Plc case
This paper covers the entire area of long term financing which the Expansion Plc can consider. Along with the various sources of financing, the cost associated with the various sources, associated risks, positive and negative side of each of the popular sources have been discussed in order to identify the suitability of each source with the Expansion Plc.
14 Pages(3500 words)Essay
MBA Programme
My overarching objectives in attending the INSEAD Executive MBA Programme are to sharpen my skills and advance my career. I believe that modern business environments require flexibility and continuous learning.
13 Pages(3250 words)Essay
MBA Managing Financial Performance/ MSc Managerial Finance Resit Assignment
The first includes the vertical and horizontal analyses of the financial data converting them into common size statements. The second is the ratio analysis, ratios being computed from the financial data provided in the case. Common Size statements: Numerical figures of financial statements can be expressed as percentages of other figures on the same statement.
8 Pages(2000 words)Essay
Strategic Corporate Finance Mod 5 Case Assignment
A company can borrow from a bank or offer stocks and bonds in the open market. It can spend or invest the cash in current or future projects that will increase the worth of the firm and maximize the wealth of its owners. The process of deciding which projects to invest in and which not to is called Capital Budgeting (Brigham & Ehrhardt, 2010).
5 Pages(1250 words)Essay
Choosing MBA Program
Most of the business schools in Canada and all over the world offer MBA programs, which may be part-time, full-time or even a distance-learning program with a specialized focus. This paper is a report that will talk about selection of a suitable MBA program.
4 Pages(1000 words)Essay
Corporate Finance: Verizon Vodafone case study
Finally, frequent talks between Verizon and Vodafone brought an end to this conflict and Vodafone agreed to sell their whole 45% holding in the joint venture to Verizon. When the Vodafone investors positively responded to this business deal, Verizon stockholders mixed opinions about the proposal.
10 Pages(2500 words)Essay
Strategic Corporate Finance Essay/Case Study
IHG has been in business for nearly 3 decades and the management believes in steady growth and aims at 8% to 10% annual revenue growth in the long term. However, the company is now presented with a prospective opportunity to invest in
10 Pages(2500 words)Essay
CORPORATE FINANCE CASE ASSIGNMEN 3 Risk and return, portfolio diversification and the Capital Asset Pricing Model; The cost of equity
The investment decision is really a two-pronged question: ‘What is the Potential Income?’ and ‘How risky is the venture?’ (Silbiger). High returns are not the only deciding factor
5 Pages(1250 words)Essay
Strategic Corporate Finance case study 1
mpany is facing a problem of capital rationing such that the company can pick either of these projects but it cannot accept both projects simultaneously. One of the projects is named as “onshore” project and the other one is “offshore”. Both these projects are expected
10 Pages(2500 words)Essay
Corporate finance
act with the underwriter and the underwriter takes in all the responsibilities leading to IPO including proper valuations of the shares, to selling it through proper channels in exchange of fees. But sometimes the investment banker indulges in what can be called spinning of
12 Pages(3000 words)Essay
Let us find you another Essay on topic Corporate Finance Case (MBA) 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