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
Stock Rights - Stock rights are rights issued to stockholders of a CORPORATION which entitle them to purchase new shares of stock in the corporation for a stated price that is freq

GHH, Inc. has two classes of stock authorized: $100,000 par preferred and $1.00 par value common. As the begining of 20C, 200 shares of preffered stock and 300,000 shares of common

Accounting Date In determining the accounting date of the trust, the trustees will consider the following: Date of death (accounts to anniversary of death); Fiscal y

Calculation of Efficiency ratios  -                     2008 2009 2010 M Net Sales

Q. Andy Eggers has invested $150,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Eggers stand to lose? a.

Investors need a 15% rate of return on Brooks Sisters' stock (rs = 15%). a.  What would the value of Brooks's stock be if the last dividend was D0 = $1.5 and if investors expect

The City of Miami must replace a number of its concrete mixer trucks with new trucks. It has received two bids and has evaluated closely the performance characteristics of the seve

1. Jepsen Corp had the following transactions relating to shares of stock: • Issued 1,000 shares • Purchased 100 shares • Re-issued 50 shares • Declared and distributed a 2-1 stock


If revenue=£92 million, purchase costs=£48 million and operating costs=£41 million, and if working capital days are 39 for inventory and 110 for accounts payable, what is the worki