financial model, Corporate Finance

Assignment Help:
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.

Related Discussions:- financial model

Replacement decision, Baobab rolling mills owns a lathe machine which was p...

Baobab rolling mills owns a lathe machine which was purchased 10years ago at sh. 75 million. The machine had an expected life of 15 yrs at the time it was purchased, and management

Illustration of a recent financial crisis, Question: "The history of ba...

Question: "The history of banking is so deeply littered with disasters that it could not be too hard to establish the causes... Fear, greed, loss of corporate memory, weak mana

What are "in-market" mergers, What are "in-market" mergers? A: An in-ma...

What are "in-market" mergers? A: An in-market merger is one that takes place between two banks operating in the same geographic area, typically a city or metropolitan area. The

Growthg and assets, a firm wishes to maintain an internal growth rate of 6....

a firm wishes to maintain an internal growth rate of 6.5% and the dividend payout ratio of 25%. The current profit margin is 6%, and the firm uses no external financing sources. Wh

Corporate identity in marketing, a) Describe what you understand by corpora...

a) Describe what you understand by corporate identity in marketing. b) Show how corporate identity is normally visibly manifested. c) Management has delegated you the role o

Capital budgeting and financial modelling, Need assignment help. Finance, n...

Need assignment help. Finance, needs to be done in excel and word.

When does a macss application event occur, Problem: (a) The Mauritius ...

Problem: (a) The Mauritius Automated Clearing and Settlement System (MACSS) is the Mauritian Real-time Gross Settlement (RTGS) system. (i) Outline briefly the concept of R

Determine the stock price, GeKay Inc. currently (January 1) has a net incom...

GeKay Inc. currently (January 1) has a net income of $10,000,000 which is expected to grow indefinitely(perpetuity) at 10% per annum.   The firm is financed at a debt-to -value ra

Mergers and Acquisitions , a) Cookie Monster Inc. (a $15 billion snack food...

a) Cookie Monster Inc. (a $15 billion snack food company) is considering acquiring Keebler Elves but is unsure of how much is should be willing to pay for the target firm. At the

Write Your Message!

Captcha
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