Fundamentals of Capital Budgeting: Percolated Fiber Free Cash Flow

Fundamentals of Capital Budgeting: Percolated Fiber Free Cash Flow in $1.50 only (Instant Download)

You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant’s report on your desk, and complains, “We owe these consultants $1 million for this report, and I am not sure their analysis makes sense. Before we spend the $25 million on new equipment needed for this project, look it over and give me your opinion.” You open the report and find the following estimates (in millions of dollars):

All of the estimates in the report seem correct. You note that the consultants used straight-line depreciation for the new equipment that will be purchased today (year 0), which is what the accounting department recommended. The report concludes that because the project will increase earnings by $4.875 million per year for ten years, the project is worth $48.75 million. You think back to your halcyon days in finance class and realize there is more work to be done!

Bucholz Brands Net Present Value (NPV) Estimation

Bucholz Brands Net Present Value (NPV) Estimation
Bucholz Brands is considering the development of a new ketchup product. The ketchup will be sold in a variety of different colors and will be marketed to young children. In evaluating the proposed project, the company has collected the following information:
  • The company estimates that the project will last for four years.
  • The company will need to purchase new machinery that has an up-front cost of $300 million (incurred at t = 0). At t = 4, the machinery has an estimated salvage value of $50 million.
  • The machinery will be depreciated on a 4-year straight-line basis.
  • Production on the new ketchup product will take place in a recently vacated facility that the company owns. The facility is empty and Bucholz does not intend to lease the facility.
  • •The project will require a $60 million increase in inventory at t = 0. The company expects that itsaccounts payable will rise by $10 million at t = 0. After t = 0, there will be no changes in net operating working capital, until t = 4 when the project iscompleted, and the net operating working capital is completely recovered.
  • The company estimates that sales of the new ketchup will be $200 million each of the next four years.
  • The operating costs, excluding depreciation, are expected to be $100 million each year.
  • The company’s tax rate is 40 percent.
  • The project’s WACC is 10 percent.
What is the project’s estimated net present value (NPV)?  Need all the procedure with the answer

Answer available.

Price of Answer: Just US$2 onlyBuy Now

Need Assistance…??  email us at [email protected].

If you need any type of help regarding Homework, Assignments, Projects, Case study, Essay writing or any thing else then just email us at [email protected]solvemyquestion.com.  We will get back to you ASAP. Do not forget to maintain the time frame you need you work to be done.

BUS 475 Complete Course

BUS 475 Complete Course

Image via Wikipedia

BUS 475 Complete Course in $19 only

Week 2

BUS 475 Week 2 Individual Assignment Strategic Plan, Part I Conceptualizing a Business

Write a 1,050- to 1,400-word paper in which you explain the importance of your selected business’s vision, mission, and values in determining your strategic direction. Include the following:

  • Define your business, products or services, and customers by developing a mission statement. Ensure that you are differentiating your product or service.
  • Create a vision for this organization that clearly demonstrates your decision on what you want your business to become in the future.
  • Define your guiding principles or values for your selected business considering the topics of culture, social responsibility, and ethics.
  • Analyze how the vision, mission, and values guide the organization’s strategic direction.
  • Evaluate how the organization addresses customer needs and critique how they achieve competitive advantage.

Format your paper consistent with APA guidelines.

Prepare to discuss this assignment with the class.

BUS 475 Week 2 Learning Team Assignment Value Alignment

Discuss with your Learning Team an existing organization with which you are familiar that is different than the one you used for the Conceptualizing a Business paper.

Write a 700- to 1,050-word paper in which you analyze the individual values and the organization’s values as reflected by the organization’s plans and actions. Include the following in your paper: