Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Superior Living
For the plant construction project, we need to have a way to determine if this project is something we should do or not. There are a number of different ways the firms evaluate such projects, but the most common are the net present value (NPV), internal rate of return (IRR) and the modified internal rate of return (MIRR). Each of these is based on the concept of discounted cash flow. The incremental cash flows of the project are evaluated to determine whether or not there is a positive cash flow, on a time-adjusted (discounted) basis (Investopedia, 2012). In theory, if the project makes a positive contribution to the company, it should be accepted. In practice, companies face decisions between mutually exclusive options. Given our tight financing, that might be the case here. So the different projects that people want to have financed will need to be evaluated against each other and only the best options chosen.
Net present value (NPV) is simply a measure...
The cash flows associated with a project are discounted according to the company's cost of capital, and weighed against the cost of starting the project. Suppose our factory project costs $100 million to start, and generates income of $40 million per year for five years. If the company's cost of capital is 12%. The net present value of this project is $44.19 million, meaning that is the amount of wealth that the project adds to the firm. Because the NPV is above zero, the project would be undertaken. This NPV, however, would be compared to the NPVs of all mutually exclusive projects, so that the best project is undertaken.
The internal rate of return takes the NPV measurement and determines what the rate of return on the project is. If the rate of return on the project is greater than the cost of capital, then the project should be undertaken. Note that this is very similar to the NPV. They are based…
Works Cited:
Investopedia. (2012). Capital budgeting. Investopedia. Retrieved March 6, 2012 from axzz1oHefP0yK
No author. (2012). Modified internal rate of return -- MIRR. Think & Done. Retrieved March 6, 2012 from http://finance.thinkanddone.com/mirr.html
Superior Living Working capital is the current assets less the current liabilities (Kennon, 2012). The working capital is an important metric because it can have a significant effect on the company's short- and long-term decision making. The working capital is affected by the cash position, the inventories and the receivables, along with the short-term liabilities. The current ratio is simply the working capital in ratio format, the current assets divided by
Project Management: Case Study in Managing a Complex Shipyard Project in Singapore Background of Complex Shipyard Construction Project Company background Project Overview and Objective Work Process of Building Construction Issue Analysis in Shipyard Construction Project Management Literature Review of Project Management Issues in Scope Management Methodology of Scope Management Lessons Learned from Scope Management Issues in Cost Management Methodology of Cost Management Lessons Learned from Cost Management Issues in Human Resources Methodology of HR Management Lessons Learned from Human Resource Management Case Study in Managing a
A report to sustainable retrofit options for Building 15 Harris Street Ultimo Sydney 622- 632 HARRIS STREET Introduction For sustainable future attainment within the construction sector, it is recommended that the sector adopt a multi- disciplinary strategy which takes into account numerous features including energy conservation, more efficient material utilization, emissions and pollution control, and minimization of material wastage. Construction works’ present nature may be improved and controlled by various means, with
Currently, the cytotoxicity of chrysotile, which is a type of asbestos, as well as Rockwool along with other man-made vitreous fibers (MMVFs) have been evaluated by cell magnetometry. This method established cytoskeleton-dependent functions of macrophages, which contribute to a significant role in phagocytosis, and is used to assess the degree of harm caused on macrophages (Kudo, Kotani, Tomita and Aizawa, 2009). Biological consequences of MMVFs have to be looked at not
In other words, at every seven courses of stone, a layer of reed matting was laid and weep-holes and drainage shafts were placed, thus preserving the ziggurat from water damage. Eventually the building fell into disrepair. Later, King Nabonidus restored the Ur ziggurat, along with other temples. Stiebing believes this was because he revered his mother's gods (285). Nabonidus claims in the clay cuneiform tablets found in the tower to
Medical Marijuana and Civil Liberties Research Project Part II Literature Review As the specter of Reagan's poorly planned and disastrously waged War on Drugs continues to haunt the American social landscape, an increasing number of ordinary citizens are indulging in an activity which has been demonized by prior generations and criminalized by the federal government. Casual ingestion of marijuana and other cannabis-based products has become legitimized in the eyes of many