Submitted By KYLIE797

Words 1263

Pages 6

Words 1263

Pages 6

0 $(3,000,000.00)

1 $1,100,000.00 $956,521.74

2 $1,450,000.00 $1,260,869.57

3 $1,300,000.00 $1,130,434.78

4 $950,000.00 $826,086.96 Less Investment $(3,000,000.00) $3,450,866.74 1. IRR % IRR= 22.38%

2. NPV NPV= $3,450,866.74 3. Should the company accept this project and why? I believe the company should look into this. The IRR is greater than the Required Rate of Return and the overall NPV is a gain. There does not appear to be a loss in this asset. 4. Explain how depreciation will affect the present value of the project. Depreciation would cause the project's PV to go up. This would be a good thing when considering the amount of taxes the company would save. 5. Provide examples of at least one of the following as it relates to the project: a. Sunk Cost - costs that are non-recoverable and shouldn't be used when considering an investment decision. An example of this would be AirJet has already purchased delivery trucks to deliver parts to vendors/customers. This cost would not be taken into consideration because it has no affect on the purchase of a new machine. This was a purchase that was done prior to any decisions made about buying the new machine. b. Opportunity Cost - This is the most valuable alternative that is given up if a particular investment is undertaken. Most of the time, these costs are overlooked. Example: The managers of AirJet are all called into a company-wide meeting. During this 2 hour meeting, they could have been out on the plant floor making production decisions or solving a problem that may have incurred during this time. This could be a negative type of cost. Positive way, the managers could have their meeting during lunch or possibly on a…...

...------------------------------------------------- Project Security Domains and Strategies Purpose This project provides you an opportunity to apply the competencies gained in various units of this course to identify security challenges and apply strategies of countermeasures in the information systems environment. Learning Objectives and Outcomes * You will learn the purpose of a multi-layered security strategy. * You will understand the information systems security (ISS) fundamentals including the definition of terms, concepts, elements, and goals. * You will incorporate the industry standards and practices with a focus on the confidentiality, integrity, availability, and vulnerabilities of information systems. * You will fulfill the role of a security professional implementing proper security controls in a specific business situation based on Systems Security Certified Practitioner (SSCP®) Common Body of Knowledge domains. Required Source Information and Tools To complete the project, you will need the following: 1. Access to the Internet to perform research for the project 2. Course textbook 3. (ISC)2 SSCP® Common Body of Knowledge available in the SSCP® Candidate Information Bulletin Project Logistics The project is divided into one smaller and one major assignment as per the details below: Activity Name | Assigned | Due By | % Grade | Project Part 1. Multi-Layered Security Plan | Unit 1 | Unit 2 | 6 | Project Part......

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...Task 5: Cost of Capital AirJet Best Parts Inc. is now considering that the appropriate discount rate for the new machine should be the cost of capital and would like to determine it. You will assist in the process of obtaining this rate. Compute the cost of debt. Assume AirJet Best Parts Inc. is considering issuing new bonds. Select current bonds from one of the main competitors as a benchmark. Key competitors include Raytheon, Boeing, Lockheed Martin, and the Northrop Grumman Corporation. What is the YTM of the competitor’s bond? You may use a number of sources, but we recommend Morningstar. Find the YTM of one 15 or 20 year bond with the highest possible creditworthiness. You may assume that new bonds issued by AirJet Best Parts, Inc. are of similar risk and will require the same return. (5 pts) What is the after-tax cost of debt if the tax rate is 34%? (5 pts) Explain what other methods you could have used to find the cost of debt for AirJet Best Parts Inc.(10 pts) Explain why you should use the YTM and not the coupon rate as the required return for debt. (5 pts) Compute the cost of common equity using the CAPM model. For beta, use the average beta of three selected competitors. You may obtain the betas from Yahoo Finance. Assume the risk free rate to be 3% and the market risk premium to be 4%. What is the cost of common equity? (5 pts) Explain the advantages and disadvantages to use the CAPM model as the method to compute the cost of......

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...Course Project Part 1 Task 1: Assessing loan options for AirJet Best Parts, Inc. (1) EAR of National First Bank loan is 10.25%. APR = 3.25 (Prime Rate) + 6.75 M = 2 (Compounded semiannually) Formula: EAR = (1+APR/M)^M – 1 Solution: 0.1025 = (1+.10/2)^2 – 1 EAR of the Regions Best Bank loan is 13.99%. APR = 13.17 M = 12 (Compounded monthly) Formula: EAR = (1+APR/M)^M – 1 Solution: 0.1399 = (1+.1317/12)^12 – 1 (2) I recommend using National First Bank because the APR and the EAR are lower than Regions Best, which will result in paying back less interest over the course of the loan. (3) The monthly payment amount of the loan is $147,357.20. I agree with this decision because APR and EAR would be lower than National First resulting in paying back less interest over the duration of the loan. I got this answer with the following information and formula in Excel: PV= $6,950,000 r= 8.6% =PMT(rate,nper,PV,FV) m= 5 (years) Task 2: Evaluating Competitor’s Stock (1) The competitor I chose is Raytheon and the rate of return assuming the dividend growth rate is 5% would be 7.57%. Raytheon’s latest dividend amount was obtained from Yahoo Finance and used with the following formula. g = 5% R = ? D1 = 2.2 (dividend amount) P0 = $85.28 (stock price) Formula: R = D1/P0 + g Solution: R = 2.2/85.28 + .05 = .0757 = 7.58% (2) Current share price of Air Jet Best Parts, Inc. is $23.06. Rate of return is...

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...Course Project Part II Introduction You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company is considering a capital investment in a new machine and you are in charge of making a recommendation on the purchase based on (1) a given rate of return of 15% (Task 4) and (2) the firm’s cost of capital (Task 5). Task 4. Capital Budgeting for a New Machine A few months have now passed and AirJet Best Parts, Inc. is considering the purchase on a new machine that will increase the production of a special component significantly. The anticipated cash flows for the project are as follows: Year 1 $1,100,000 Year 2 $1,450,000 Year 3 $1,300,000 Year 4 $950,000 You have now been tasked with providing a recommendation for the project based on the results of a Net Present Value Analysis. Assuming that the required rate of return is 15% and the initial cost of the machine is $3,000,000. 1. What is the project’s IRR? (10 pts) 2. What is the project’s NPV? (15 pts) 3. Should the company accept this project and why (or why not)? (5 pts) 4. Explain how depreciation will affect the present value of the project. (10 pts) 5. Provide examples of at least one of the following as it relates to the project: (5 pts each) a. Sunk Cost b. Opportunity cost c. Erosion 6. Explain how you would conduct a scenario and sensitivity analysis of the project. What would be some project-specific risks and market risks related to...

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... Course Project Part II Introduction You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company is considering a capital investment in a new machine and you are in charge of making a recommendation on the purchase based on (1) a given rate of return of 15% (Task 4) and (2) the firm’s cost of capital (Task 5). Task 4.Capital Budgeting for a New Machine A few months have now passed and AirJet Best Parts, Inc. is considering the purchase on a new machine that will increase the production of a special component significantly. The anticipated cash flows for the project are as follows: Year 1 $1,100,000 Year 2 $1,450,000 Year 3 $1,300,000 Year 4 $950,000 You have now been tasked with providing a recommendation for the project based on the results of a Net Present Value Analysis. Assuming that the required rate of return is 15% and the initial cost of the machine is $3,000,000. 1. What is the project’s IRR? (10 pts) 2. What is the project’s NPV? (15 pts) 3. Should the company accept this project and why (or why not)? (5 pts) 4. Explain how depreciation will affect the present value of the project. (10 pts) 5. Provide examples of at least one of the following as it relates to the project: (5 pts each) a. Sunk Cost b. Opportunity cost c. Erosion 6. Explain how you would conduct a scenario and sensitivity analysis of the project. What would be some project-specific risks and market risks related to this project?......

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...Keller Graduate School of Management Business Economics GM545 Online Graduate Course Summer Session A, July 2010 Project Part 2 7 August 2010 Exercise 1: Chapter 15, Question 14 (textbook page 424) National income and output are used in economic studies to estimate the value of goods and services produced in an economy—a snapshot of a country’s economic activity. A system of national accounts is employed to account for and record economic changes. National income is calculated using a variety of different methods. Some of the more popular methods include GDP (Gross Domestic Product), GNP (Gross National Product), NNP (Net National Product), NNI (Net National Income) PI (Personal Income) and PDI (Personal Disposable Income), among many others. [ (Investopedia ULC 2010) ] National income statistics provide us with a numerical comparison of one country’s economic situation with another country’s economic situation. Easily economic growth of countries can be compared over time or at a particular snapshot in time. National income accounts also provide government agencies and private businesses with a tool for economic planning and budgeting. What’s more is this information provides a comparison with the standard of living from one country to another. Many issues arise with accounting for the true national income of any country. Certainly there is a concern for double-counting, for example the outputs of one business are the inputs of another business. If both are......

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...Formal Proposal Submission Assignment Go to the http://fbo.gov 1. Search for an opportunities within a 90 day period and select any opportunity of your choice. 2. Include the solicitation Number and Contract Award date. 3. Submit a formal written proposal in response to the opportunity that you have selected. Evaluation Criteria Technical merit is substantially more important than price in determining who will be included in the competitive range. As proposals become more technically equal, price will take on greater significance. The Government will select the top 3-5 Offers, considering the following evaluation criteria, listed in descending order of importance. * Technical Approach * Subject Matter Knowledge * Key Staff and Other Resources * Past Performance * Cost Written Proposal Format and Instructions Your written proposal must have a minimum of 20 pages but not exceed 25 pages in length and include the items below: * 1 Page Business Professional Cover Letter addressed to the bid contact, including your overall cost estimate (bid) for the project. * Technical Approach should be at least 5-7 pages and include a description of your management plan for the overall project. Hint: Use of PM concepts apply here! * Resumes should be summarized for the key staff that you are proposing indicating their past experience, skills and education relative to the bid selection (at least 3-5 – one page each).......

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...Course Project Part 2 PROJ592 Proj. Cost and Schedule Control Leon Constructions, LLC (Construction of Residential Complex) Angel Carrasquilla D40123142 Keller Graduate School – MSc Project Management 1. Executive Summary Leon Constructions LLC, is a construction company that specializes in the residential and commercial building construction in Florida. The company normally constructs residential and commercial buildings for sell for a bigger profit, or leasing the spaces for other companies. And this project is one that the have taken in order to make a more suburn area in the state of florida, specifically in North Lauderdale. The scope of this project involves site and land development, design, construction and final finishing of this building. The Company would use an integrated approach to the construction approach and methodology. The approach, methodologies and techniques used in this project emphasize upon the following key points: * Effective site planning, land development and site preparation * Timely and good quality construction of the building meeting the design specification * The building should meet all the business related objective such as: * cost and quality objective * Schedule and resource objective as mentioned in the project charter * Timeline for this project * All statutory laws and regulations, guidelines and standards This project will meet all the statutory guidelines and regulations and would be......

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...PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1......

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...PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://chosecourses.com/PROJ%20592/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1......

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...DeVry BUSN 379 Full Course Project (Part 1 And Part 2 Project) IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=devry-busn-379-full-course-project-part-1-and-part-2-project IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Objective The objective of the project is applying financial analysis concepts in real-life investment scenarios. The project will be divided in two sections with Part I due at the end of Week 3 and Part II at the end of Week 6. Part I of the project will give students the opportunity to use valuation and time value of money techniques to evaluate stocks and bonds under different market conditions. Part II of the project will require students to incorporate the concepts of cost of capital, capital budgeting and capital structure in evaluating a specific capital investment project using the Net Present Value approach. Both Part I and II will include calculations, as well as a written analysis about the results and implications of these calculations. • For detailed instructions and requirements about Part I of this course project, click here. • For detailed instructions and requirements about Part II of this course project, click here. Guidelines • The project is subdivided in Tasks. Part I contains Tasks 1, 2 and 3 and is due at the end of Week 3. Part II contains Task 4 and 5 and is due at the end of Week 6. • Present all your calculations and formulas......

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...DeVry BUSN 379 Full Course Project (Part 1 And Part 2 Project) IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=devry-busn-379-full-course-project-part-1-and-part-2-project IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Objective The objective of the project is applying financial analysis concepts in real-life investment scenarios. The project will be divided in two sections with Part I due at the end of Week 3 and Part II at the end of Week 6. Part I of the project will give students the opportunity to use valuation and time value of money techniques to evaluate stocks and bonds under different market conditions. Part II of the project will require students to incorporate the concepts of cost of capital, capital budgeting and capital structure in evaluating a specific capital investment project using the Net Present Value approach. Both Part I and II will include calculations, as well as a written analysis about the results and implications of these calculations. • For detailed instructions and requirements about Part I of this course project, click here. • For detailed instructions and requirements about Part II of this course project, click here. Guidelines • The project is subdivided in Tasks. Part I contains Tasks 1, 2 and 3 and is due at the end of Week 3. Part II contains Task 4 and 5 and is due at the end of Week 6. • Present all your calculations and formulas......

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...592 FULL COURSE PROJECT PART 1 AND PART 2 To purchase this visit following link: http://www.activitymode.com/product/proj-592-full-course-project-part-1-and-part-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Full Course Project Part 1 and Part 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) Activity mode aims to provide quality study notes and tutorials to the students of PROJ 592 Full Course Project Part 1 and Part 2 in order to ace their studies. PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 To purchase this visit following link: http://www.activitymode.com/product/proj-592-full-course-project-part-1-and-part-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Full Course Project Part 1 and Part 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) Activity mode aims to provide quality study notes and tutorials to the students of PROJ 592 Full Course Project Part 1 and Part 2 in order to ace their studies. PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 To purchase this visit following link: http://www.activitymode.com/product/proj-592-full-course-project-part-1-and-part-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Full Course Project Part 1 and Part 2 PROJ 592 Week 4 Course Project, Part 1......

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...PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://devrycourse.com/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://devrycourse.com/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://devrycourse.com/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://devrycourse.com/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase here http://devrycourse.com/proj-592-full-course-project-par-1-and-part-2 Product Description PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 Full Course Project (Par 1 and Part 2) Purchase......

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...PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 To Purchase this tutorial visit following link http://wiseamerican.us/product/proj-592-full-course-project-part-1-part-2/ Contact us at: SUPPORT@WISEAMERICAN.US PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2 (C-P2) PROJ 592 FULL COURSE PROJECT PART 1 AND PART 2 PROJ 592 Week 4 Course Project, Part 1 (CP-1) PROJ 592 Week 7 Course Project, Part 2......

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