What are some of the positive and negative impacts

Assignment Help Finance Basics
Reference no: EM13279689

How to measure the value of a capital budgeting project based on financial measures or formulas. However, certain projects can have significant impacts on a company, both positive and negative, that can't be quantitfied using a formula.

Required: Your firm is considering closing a plant that employs 5,000 people in a small town of 20,000 people in central Florida. The company will relocate the plant to a metropolitan city of with more than 1 million people.

What are some of the positive and negative impacts of this capital budgeting decision? What can the firm do mitigate some of the negative impacts?

For example, one negative impact would be the loss of income to 25% of the people in the small Florida town.Type your question here

Reference no: EM13279689

Questions Cloud

Is it morally permissible to execute a murderer : Is it morally permissible to execute a murderer if he truly is remorseful and apologizes for his actions?
What was the most recent dividend per share paid on stock : Feeback Corporation stock currently sells for $32 per share. The market requires a return of 11.8 percent on the firm's stock. If the company maintains a constant 3.9 percent growth rate in dividends, what was the most recent dividend per share pa..
What is the relationship between bms-ims and im : Consider a 3 phase, 2 pole induction machine. Neglect the stator windings resistance and the leakage inductance. The rated voltage is 208 V (line-line, rms) at 60 Hz. Lm=60 mH, and the peak flux density in the air gap is 0.85T.
What is the net force on the hang glider : A hang glider and its pilot have a total mass equal to 119 kg. While executing a 360° turn, What is the net force on the hang glider
What are some of the positive and negative impacts : What are some of the positive and negative impacts of this capital budgeting decision? What can the firm do mitigate some of the negative impacts?
Draw phasor diagrams associated with under-excited motor : Draw the phasor diagrams associated with under-excited and over-excited synchronous motors and show the power factor of operation associated with each.
Characteristic poses the most significant threat : Analyze the characteristics of MNEs that give trade unions cause for concern and determine which characteristic poses the most significant threat. Recommend at least one (1) action trade unions can take to mitigate the threat you have identified.
What was the blood pressure at the feet : If Argentinosaurus, a long-necked, gigantic sauropod, had a head height of 19 m and a heart height of 9.1 m, What was the blood pressure (in torr or mm Hg) at the feet
Explain the algorithm for the addition of bcd numbers : Give the circuit that adds two BCD numbers and gives out a BCD number. The input BCD numbers should be of two digits and the output BCD number should be of 3 digits. Explain the algorithm for the addition of BCD numbers.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the correct price for the coupon bond today

A US Government 2-year T-Note has a face value of $1,000 and pays annual coupons of $70. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown below.

  Determine the market potential for a product

Determine the market potential for a product that has 50 million prospective buyers who purchase an average of 3 per year and price averages $25. How many units must a company sell if it desires a 10 percent share of this market?

  Determine present value of future annuities

Think of something you want or need for which you currently do not have the funds for. It could be a vehicle, boat, horse, jewelry, property, vacation, college fund, retirement money, etc. How much do you need to invest today to reach that desired ..

  Calculate earnings per share

Southland Industries has $60,000 of 16 percent bonds outstanding, 1,500 shares of preferred stock paying an yearly dividend of $5 per share, and 4,000 shares of common stock outstanding.

  Computing price of at-the-money european put on futures

An at-the-money European call on the futures sells for= $5.50. Determine the price of at-the-money European put on the futures? Suppose both the call and put have the same maturity.

  What are the net proceds to the firm

Rayac is About to go public. Its stcokholders own 500,00 shares. The new public issue will represent 700,000 shares. The shares will be Prices at $25.00 to the public with a 5% spread. the out of pocket cost will be $450,00. What are the net proce..

  What is the annual operating cash flow

A 5-year project is expected to generate revenues of $90000, variable costs of $35000, and fixed costs of $15000. The annual depreciation is $8000 and the tax rate is 35 percent. What is the annual operating cash flow?

  Gauge of your ability to apply your tools

This question should be a good gauge of your ability to apply your tools and analytic skills acquired thus far on the topic of valuation. **Important to note the firm goes into financial distress in this case and defaults on its payment.

  Estimating price of the stock

EZee Corporation' common stock dividend is expected to grow at 5 percent for the next 2 years and then at 0% indefinitely. If the current dividend is $4 and the required return is 14%,

  Computation of depreciation expense

Computation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense

  Calculate the varible cost of hand-made rocking chairs

calculate the varible cost of hand-made rocking chairs using the following information: fixed cost $300000, Excepted unit sales 600 rocking chairs, retail price (including markup) $750, markup (profit margin) 20%.

  What is the unlevered value of the firm

The company is in the process of issuing $2 million of bonds at par that carry a 5% annual coupon. What is the unlevered value of the firm (in millions)?

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