Prepare a cash flow forecast, Cost Accounting

1.  Prepare a cash flow forecast for the proposal to launch SafeCus in 2010 for a three-year period from 1 January 2010 using the data in the body of the Case Study and discount at a cost of capital of 4% ignoring tax. (This is the "base" for the sensitivity analysis.)

2.  Prepare a Sensitivity Matrix for the project reflecting the two major uncertainties identified by Gordon. To do this you should calculate the impact of the changes in cost of capital between 4% and 10% in increments of 2% and changes of demand as shown in the Appendix.

3.  Comment on Gordon's statement that "as there are no capital allowances tax is not an issue in deciding whether to go forward with the project" and show whether your results are affected by tax.

4.  Show, with calculations, whether your answer to 3 above affects your sensitivity matrix as per task 2.

Posted Date: 2/22/2013 7:24:26 AM | Location : United States

Related Discussions:- Prepare a cash flow forecast, Assignment Help, Ask Question on Prepare a cash flow forecast, Get Answer, Expert's Help, Prepare a cash flow forecast Discussions

Write discussion on Prepare a cash flow forecast
Your posts are moderated
Related Questions
I have a project due this week and I am having slight issues with the transactions. I cannot seem to receive the correct titles under the recordings

A company is investigating the effect on its cost of capital with respect to the tax rate. Suppose there is a capital structure of 20% debt, 10% preferred stock, and 70% common sto

The following data (in thousands of dollars) have been taken from the accounting records of Barn Burner Corporation for the just completed year.       Sales

Regression Analysis Method of Cost Estimation It includes estimating the cost function by utilizing past data or the dependent and the independent variables. Hence the cost fu

A forecasted increase in metal prices has encouraged the ABC Resource Company to consider the expansion of the capacity in one of its mine operations in Northern Ontario. For this

Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model).  See chapter 18 of the textbook

The Federal Reserve adjusts short term interest rates based upon their perceptions of the needs in the economy.  Please describe the ways the Federal Reserve can influence interest

Rayya Co. purchases and installs a machine on January 1, 2013, at a total cost of $105,000. Straight-line depreciation is taken each year for four years assuming a seven-year life

ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion left only fragments o

Absorption vs. Variable Costing Varilux manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further