Calculate the net present value, Financial Accounting

You are a Senior Financial Manager in the recently privatised Sodor Railway Engineering Corporation Plc (SREC).

(a) Subsequent to privatisation the Chief Executive Officer of SREC feels that the organisation needs to clarify its mission and objective. In order to achieve this he has asked you to review relevant academic literature and discuss the relative benefits of competing objectives of the firm.

This review of the literature should be written as an essay and refer to academic books and journal articles to support your discussion. It is expected that the essay should be approximately 1,000 words in length.

(b) For the attached case study you are required to produce a report for the CEO, which discusses the viability of the proposed project. This report should:

i. Explain the meaning and relevance of the time value of money.

ii. Calculate the Net Present Value of the project, as specified in the project proposal.

iii. Discuss the viability of the project if, during the course of the final negotiations, changes are made in terms of:
• Sir Hatt asks for a discount;
• The payment schedule is revised;
• The estimated level of costs prove to be inaccurate;
• The provisional cost of capital is incorrect.

iv. Justify assumptions made and explain the relevance of the calculations performed;

v. Include appropriate figures and tables to support your report

Posted Date: 3/21/2013 5:07:08 AM | Location : United States







Related Discussions:- Calculate the net present value, Assignment Help, Ask Question on Calculate the net present value, Get Answer, Expert's Help, Calculate the net present value Discussions

Write discussion on Calculate the net present value
Your posts are moderated
Related Questions
Q. Show the Foreign Tax Credit? Foreign Tax Credit - A U.S. taxpayer who pays or accrues income tax to a foreign country may elect to credit or deduct these taxes in a determin

Mr N. M. is lucky to have a lottery prize of Rs 20 million. He does not have any liability and does not have any claimant over this money. He has the following alternatives: (i)

Define why country in rigorous recession reflect on devaluation? Countries can deal with the both internal problems with external solutions. Why might a country in rigorous rec

Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2014, Steven Craig and Georgia Enterprises.

RECEIVING ORDER It includes five main important points as follows: Effect of receiving order: The consequences of the making of the receiving order are:The debtor retain

what the meaning of the economic consequences of accounting information quality with examples?


Explain the term - Providing a service One way of viewing accounting is as a form of service. Accountants provide economic information to their 'clients', who are numerous user

Joe has two children, Sydney age 5 and William age 2, that he wants to provide for their education funding.  Currently, tuition is $10,000 per year and tuition inflation is 6%.  Jo

This subject has really beeen difficult for me. This is, by far, the most challenging assignment I have had to deal with. Please help! If someone can do it for me, that would be ev