A project has been evaluated on the basis that it will cost $22 million and will have a net present value of $4.3 million The project has commenced and $5 millionof the $22 million has been invested. A problem has been discovered that will cost an additional $4.5 million to rectify. The $4.5 million will be payable immediately. What is theNPV of continuing with this project?
H is a senior production manager for PLtd which isabout to make a strategic decision on setting up a new production line requiring $3 millionof new specialist equipment.
H's daughter is friends with and goes to school withthe daughter of T, the sales manager in KKLtd. KK Ltd isa potential supplier ofthespecialist equipment that P Ltd requires.
T owns a holiday home. H's daughter regularly accompanies T's daughter on family vacations at this holiday home, all at T's expense.
H is theonly person working for P Ltd who is qualified to select the specialist equipment. KK Ltd will definitely bid for the sale.
What should H do?
M, a manufacturing company, has had some problems with defects in one of the main productsitproduces. This product has been made by the company for many years and is very profitable. Last monthithad over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability.
Which of the following controls could M introduce to reduce defects and also increase profitability?
FGT is evaluating the political risks associated with its operations around the world.
Which of the following would indicate that a particular subsidiary has a high level ofpolitical risk?
R plc is considering an investment of $1,100,000 in a new machine which is expected to have substantial cash inflows over the next five years.
The annual cash flows from this investment and their probability are shown below:
Annual cash flow ($)Probability
200,000 0.4
280,000 0.5
350,000 0.1
At the end of its five-year life, the asset is expected to sell for $100,000. The cost of capital is 5%.
What is the Expected Net Present Value?
Give your answer to the nearest whole $.
Narcisa
1 months agoTrina
3 months agoGeorgene
4 months agoMarya
5 months agoOlive
6 months agoTom
7 months agoSteffanie
7 months agoDorathy
8 months agoJacob
8 months agoReynalda
9 months agoGenevieve
9 months agoPhil
9 months agoRuthann
9 months agoKaitlyn
10 months agoFernanda
11 months agoGwenn
11 months agoKristel
11 months agoMarge
11 months agoMarylin
12 months agoTijuana
12 months agoDonte
1 years agoLeonard
1 years agoMicaela
1 years agoTheola
1 years ago