Already have an account? Get multiple benefits of using own account!
Login in your account..!
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The new investment has been under consideration since the beginning of January 2008 when the new government of Gujistan first invited companies to submit their proposals to build and run a large power station in the country. The invitation to tender stipulated that the project would be for an initial period of 10 years, and then subject to a satisfactory review by the Office of the Independent energy regulator (similar to OFGEN in the UK) for an indefinite period of time.
Coincidently, PASE plc policy is to appraise investment projects over a 10 year period, and then to assume that the after-tax sterling operating cash flows will grow at a constant rate of 5 percent per annum indefinitely. . The company had spent £1 million in the preparation of its own submission.
The following details were prepared in 2009 and the first year of operation and construction is 2010. The company's policy is for surplus cash flows to be remitted to the UK at the end of each year. The project-team at PASE plc which prepared the initial bid for the project estimated that the total cost of the project will amount to G$900 million in plant and other equipment. The project will take two years to construct, with 65 percent of the project cost incurred in the first year of construction. In addition to the total project cost, an additional investment of G$75 million in 2010 would be required for working capital. Funding for the project will come from the UK. The policy of Gujistan's government is to allow investment in plant and equipment for this type of projects to be depreciated for tax purposes at the rate of 50 percent in the first year of operation, and subsequently on a reducing balance basis at 5 percent per annum.
As a result of the recent price instability in the world-wide energy markets, the project-team has felt it necessary to revise their estimates of the operating profits of the project, before depreciation and taxes in Gujistan dollars (G$) as follows:
Year 1 30
Year 2 200
Year 3 250
Year 4 300
Year 5 330
Year 6 350
Year 7 - 10 380
The above estimates are now in real terms.
Q. Show the Symptoms of overtrading? Symptoms of overtrading • Fast sales growth. • Increasing trade payables. • Increasing trade receivables. • Fall in cash bal
A company's current assets are less than its current liabilities. Company issues new shares at full market price. What will be the effect of this transaction upon company's work
You purchased your house 5 years ago for $110,000 and based on recent appraisals it can be sold today for $141,000. What effective annual rate of return did you earn?
Question The variance of Stock A is .004, the variance of the market is .007 and the covariance between the two is .0026. What is the correlation coefficient?
Gujistan charges foreign companies corporation tax at a preferential tax rate of 15 percent for the first five years, rather than the normal rate of 35 percent. PASE plc currently
What are the four basic elements found in all economic system?
Working capital cycle for a trade Inventories days (time inventories are held before being sold) + Trade receivables days (how long the credit
Question: (a) What do you understand by these processes? Autoregressive Distributed lag Moving Average (b) Write down an AR(2) process and a MA(1) process. (c) Calc
Topic AASB 116 Property, Plant and Equipment allows entities to choose between the cost model and revaluation model for measuring and accounting for non-current assets subseq
Question: (a) Why is a disturbance term included in a regression? (b) What are the properties of an OLS estimator? (c) Outline the major steps involved in the application
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