Decision affect the share price and the value of the company

Assignment Help Managerial Economics
Reference no: EM13826929

Discuss your next assignment. "The board of directors has been working on the cost and benefits of various expansion options," he says. "We have developed the numbers for one scenario in this spreadsheet, and we want you to review it," he says handing it to you. "So you're looking for me to use present value analysis to discount the cash flows," you say. "Should I include the calculations for net income, operating cash flows, free cash flows, and the present value cash flows and net present value (NPV) in the spreadsheet?" "Yes," he says.

"We want to know if the project has a positive or negative NPV. Also, in 500 words or less, explain the implications for AutoEdge and its shareholders if there is a positive NPV or, conversely, if there is a negative NPV." "This will be interesting," you say. "Good," he says. "Oh, and one more thing.

In addition to considering the NPV value, we want to know what kind of economic assumptions you think the board should consider.

Articulate the economic and political risks with the strategy, and list options to overcome them.

How will this decision affect the share price and the value of the company?

In light of all this information, would you support the option for expansion abroad or relocate back to the United States?

Include an explanation of your response, as well." "I'll get right on it," you say.

Verified Expert

Reference no: EM13826929

Questions Cloud

How much drugs and food will panhandler consume : The question is belongs to economics and it is explain about If drugs and food each cost $1 per unit, and the PH has $20 is cash, how much D and F will he consume? Is the PH better off with $20 in cash, or with $10 in cash and $10 in food vouchers..
Theological foundations and spiritual practices of daoism : Compare and contrast the theological foundations and spiritual practices of Daoism, Confucianism, Hinduism, and Buddhism
Explain the effect each cost flow method : Explain the effect each cost flow (FIFO, LIFO) method would have on profit in rising and falling prices, and why..
Probabilities of the markova chain transition probability : Find the classes and the limiting probabilities of the Markova chain transition probability matrix.
Decision affect the share price and the value of the company : Articulate the economic and political risks with the strategy, and list options to overcome them - How will this decision affect the share price and the value of the company?
Describe the djia-s-p 400 : Describe the DJIA, S&P 400, S&P 500, NASDAQ Composite, Russell 2000, and Dow Jones Wilshire 5000 indexes. Which segments of the market does each measure track?
Prepare any journal entries needed as a result : The supplement to my previous questions fro M5-12 and M5-13 M5-12 Use the information in M5-10 to prepare the May 31 bank reconciliation. M5-13 Use your answer to M5-12 to prepare any journal entries needed as a result of the May 31 bank reconciliati..
Solve the systems of equations by graphing : Need help solving a math question Solve the systems of equations by graphing. Check your solution.Y=-4x+23y+12x=6
Marketing plan for international business expansion : Marketing Plan for International Business Expansion

Reviews

Write a Review

Managerial Economics Questions & Answers

  Using the estimated sales and production of 10000 pairs

The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis.

  Estimating profit

Your supervisor recently instituted a plan that encourages her managers to share non private demographic characteristics voluntarily provided by those who buy your company's final product.

  Substantially to pricing and product design

Dell Computer Corporation, the world's biggest personal computer maker, is keenly aware of everything its rival PC manufacturers decide to do.

  7 problem-solving question use the following data for a

7. problem-solving question use the following data for a firms output at various levels of employment l to calculate a

  Capital-intensive method of production

Calculate the six-firm concentration ratio and Herfindahl-Hirschman index for this industry. What does each of these measures have to say about the degree of concentration in the industry? Explain.

  Determine expected rate of return

You are planning investing in a portfolio of common stocks of four publicly traded companies with betas as follows:

  What are the impacts on price and quantity

Describe a real situation in which a sector of supply or demand was or will be hit by a change to costs, to benefits, or to taxes and subsidies - what are the impacts on price, quantity, and the outcomes for producers and consumers, of a shock to ..

  Manager compensation plan in car dealership

Two months before, the landlord of a car dealership significantly changed his sales manager's compensation plan. Under the old plan, the manager was paid a salary of $6000 every month

  Question 1a what are the profit-maximizing price and output

question 1a what are the profit-maximizing price and output levels? explain them and calculate algebraically for

  Describe the business and explain the general pattern

Describe the business and explain the general pattern of change of the particular market model indicating how this change is likely to impact business operations.

  Define companys marketing environment

Define companys marketing environment and what are the actors and forces that constitute company's marketing environment and what is a brand

  Create three optimal decision rules for katrina candies

From the scenario for Katrina's Candies, suggest one (1) method in which Herb could use a cost-benefit analysis to argue for or against an expansion

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd