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With the economy being so low, we understand the importance of bring our customers the best quality of service and good. We will try to maintain the price of $7 per person including drinks for as long as we can. * * * * 3.0 Capital Expenditure Budget 3.0 Capital Expenditure Budget * The budget for capital expenditures would be $65,000. This cost would be upgrading the equipment or buying new pizza ovens or dishwasher. The food inventory would also be a capital…

An offer from Alitalia has been given to the general director of Le Centre Sheraton Hotel for a one year contract to supply 40 hotel rooms at $42 a night. The contract will offer the Alitalia crew an allowance and lower food and beverage costs. Last year they sold out 115 hotel rooms at $105 a night. Georges Villedary has to decide whether or not to sign the contract. Identification of Issues Georges Villedary has to decide whether or not to sign the contract with Alitalia. Not only does he…

For example, present value of $500 cash amount currently and figuring out how to accumulate if invested interest rate (i) of 10% for a period of time (N) of 2 years. Once calculating the compounded interest is calculated, and then multiply the interest rate by initial…

Your healthcare organization, Harris Memorial Hospital, needs to look at both “hard” and “soft” savings when considering a system’s return on investment. Today’s presentation we will take a deeper look at the soft returns when implementing an electronic health record (EHR) system. It is important to remember that indirect savings are usually applied to processes not easily measured and, thus, quantifying savings can be difficult to see at first. We will look at the three steps in documenting…

before making a yes or no decision on the same. The few things the company would like to understand at the 1st step would be the reason behind the same and its financial viability. The different investment measuring tools in this case would be the Net Present Value (NPV), Internal Rate of Return (IRR) and the payback period for the investment opportunity. Payback period is the real case in this kind of investments. This is particularly because the pay-back period will define the time period…

Asset and Liability Management A credit side of a US bank’s balance sheet typically included floating-rate liabilities and long-term fixed-rate liabilities, whereas debit side consisted of floating-rate assets and long-term fixed-rate assets. Generally speaking, asset and liability management required the banks to match the economic characteristics of its cash in and out and the strategic decisions relative to interest rate exposure required banks to match their assets to liabilities effectively…

6.1. CAIRN-VEDANTA DEAL I n August 2010 Vedanta Resources Plc (“Vedanta”), a company listed on the London Stock Exchange, announced it proposal to purchase 51% controlling stake in Cairn India (“Cairn India”), for a consideration of (reportedly) USD 9.6 billion. Cairn India is a subsidiary of Cairn Energy Plc, a listed entity in the United Kingdom, a leading player in the Indian oil and gas industry. The deal was structured to include a non-compete fee into the price of the shares of the…

The three variance equation parameters such as ω, α, and β of GARCH-M model with different error distributions for all subset data were significant at 1% level with correct signs which provide evidence in favor of ARCH and GARCH effect. The significant value of ARCH term (α) implies that past stock price innovation influence on current volatility whereas significant GARCH parameter (β) suggest that current volatility of stock price is influenced by past volatility. For asymmetric models…

A. Suppose the company is considering a potential investment project to add to its portfolio. Calculate the following items: Before Home Depot calculates the net present value (NPV), internal rate of return (IRR), terminal value (TV), and modified internal rate of return (MIRR) of its newest potential investment project, the company must first calculate its free cash flows. The calculation begins by subtracting the operating costs and the 20% depreciation expenses from the cash flows…

Q1: Assume that all probabilities and outcomes are accurate and certain. First, there is a decision, which is whether we need Geo-Star to provide consultation. If we need the consulting, we have to pay them $0.1 m + 10% of the total uranium found. After we choosing Geo-Star, the company will provide two reports, favourable (60%) and unfavourable (40%). For favourable report, we can choose dig or not dig. If not dig, we will lose totally $ 0.1m. if dig, 90% get substantial amounts of uranium 25…