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

What is the minimum accrual rate, Question: Car Maker Ltd is a multinat...

Question: Car Maker Ltd is a multinational. In one of the countries where it is present, current legislation makes it compulsory for companies to pay a gratuity lump sum at ret

Weighted Average Cost os Capital, Motown Manufacturers are involved in the ...

Motown Manufacturers are involved in the manufacturing of zips, buttons and sewing needles. they need to automate their plant (at a cost of R1 100 000) as a result of a sharp incre

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

IFRS15, Ask q• Effect of incorrect recognition of revenue on financial repo...

Ask q• Effect of incorrect recognition of revenue on financial reports of IFRS15

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

Interested in your answers for this as an example, To determine Henkel''s c...

To determine Henkel''s corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European Household and Personal Care segment. Pri

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

Calculate the repo rate, Question: (a) Distinguish, using financial ass...

Question: (a) Distinguish, using financial assets as examples, between securities quoted at par and securities quoted on a discount. (b) Calculate the value of a £50,000 Tre

Use of forecasting method, Cooper Toys sells a portable baby stroller calle...

Cooper Toys sells a portable baby stroller called the Tot n' Trot. The past two years of demand for Tot n'Trots are shown in the table below. Use an appropriate method to forecast

Endowment, #quOn Completion of her introductory finance course, Kieran was ...

#quOn Completion of her introductory finance course, Kieran was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were w

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