Think of any business you would like to open in Lebanon (from small to big project) and prepare a preliminary income statement from five to eight years maximim. Compute the expected sales, variable cost, fixed cost, depreciation by using the straight line method, $0 interest and taxes of 35%). So to finance your project, no debt will be issued and no interest charges too.
Get some basic computations for the capital spending (land, buildings, factories, PPE or property, plant and equipment, etc.). Assume zero salvage value for the capital spending. Straight-line depreciation method to be used and market value is equal to 20% if life of the project is 5 years and 10% if 8 years.
Get some basic computations for the working capital (you can compute it as a fixed percentage of net revenues of 15% to 20%).
Prepare three scenario analyses (basic, worst case and best case).
Prepare a sensitivity analysis by changing different assumptions, once at a time.
Prepare NPV break-even analysis (find Q and/or P) and Accounting Break-even analysis (find Q and/or P).
You are kindly requested to calculate the Accounting BE, the Cash BE, the Financial BE, a targeted NPV, the DOL, DFL, and DTL (found in the last three pages of chapter 11 which you are required to read).
Apply as well the most capital budgeting techinques learned from chapter 9 (accounting average return, payback period, discounted payback period, IRR, PI, NPV Profile, etc.)
The deadline for submitting this Project is on Wednesday, 20 of March 2013.

Posted Date: 3/17/2013 8:20:32 AM | Location : Lebanon

Ask an Expert

Related Discussions:- financial model, Assignment Help, Ask Question on financial model, Get Answer, Expert's Help, financial model Discussions

Write discussion on financial model
Your posts are moderated

Write your message here..

Related Questions

MBA assignment, I need some ideas or topic for my 8-12 pages semester assig... I need some ideas or topic for my 8-12 pages semester assignment. Further more tools to solve the assignment. I''m working in an engineering company (in a technical role).

Economic value added-cost of equity , Course assessment: Company direct... Course assessment: Company directors often believe that the stock market fails "correctly" to value the firms they manage, while investors are often alarmed by the volatility i

Financial model, Think of any business you would like to open in Lebanon (f... Think of any business you would like to open in Lebanon (from small to big project) and prepare a preliminary income statement from five to eight years maximim. Compute the expecte

Explain how the crank-nicolson scheme, Solution of the Black-Scholes model ... Solution of the Black-Scholes model is obtained through a transformation into a heat equation. The general one-dimensional heat equation is given by where α > 0 is a consta

Merger, The Chocolate ice cream company and the vanilla ice cream company h... The Chocolate ice cream company and the vanilla ice cream company have agreed to merge and form Fudge Swirl Consolidated.Both companies are exactly alike that are located in differ

Assignment, 5. Produce a cash budget and determine the statement of externa... 5. Produce a cash budget and determine the statement of external financing required for NSP Inc. for the months of December and January using the following information: • NSP Inc.

Differential cashflow, what is differential cash flow what is differential cash flow

Explain the usefulness of the adjusted present value method, Syfy is consid... Syfy is considering investing in a project with the following details. The initial cost of investing in equipment is estimated to be Rs1,200,000. However, the project is deemed to

Acquisition, PFA PFA

Determinants of growth of a company in financial terms, Determinants of gro... Determinants of growth - Profit Margin Dividend Policy   Financial Policy Total asset Turnover