Case Study

Jordan Poulsen Myntillae Nash Introduction to Financial Management Prof. Crawford Questions for Sheetb set aside & Halyard, Inc. 1. Project the silver flows for the naval forces duffel study regard for years 0 through and through 5. Be sure to take into discover the three chief(prenominal) move of a project valuation: initial costs, one-year money flows, and ending honor. As you do so, make the hobby assumptions (in appendix to those already mentioned in the case): a. The forecasts in Table 8-6 argon accu order, chuck out that depreciation should be calculated harmonize to the MACRS schedules. b. The $1.5 million volunteer for the let down and plant represents the qualitys true current market value (i.e., what it could be sold for) and the best envision of its market value in 5 years. For initial costs, hark back to include cash in flows for the cost of the land, plant, and machinery. The opportuni ty cost of the land should be include as part of your initial costs. (Note that if S&H opted to wander the land, thither would be task consequences associated with the sale.) withal remember to greenback for investiture in working(a) capital. For terminal value, remember to include cash flows for selling or paper off the land, plant, and machinery at the certainty of the project. (Dont forget the tax consequences.

) Also remember to account for the freeing up of working capital at the end of the project. Note: Although you could do these projections with pencil, paper, and calcul ator, you should do this on an Excel spreads! heet. oblige the spreadsheet with your projections to your report. 2.What is the net present value of the navy duffel canvas project? What is the IRR of the project? establish on the assumptions that have been made, should S&H accept the project? NPV= 733 IRR= 6.8% Yes we would because the NPV is positive and also there is a 6.8 return rate on your initial investment 2. Perform some sensitivity analysis...If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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