新西兰毕业论文代写
Due to the availability of all the required information, NPV analysis was used as the discounted cash flow method. Moreover, the FCFE cash flow method was used as the company will obtain no debt to finance the new contract as doing so would result in a breach of covenants (Black 2008). For the discount rate, the capital asset model was used to come to an equity discount rate which was 20%. The use of an equity discount rate was appropriate since the project is being financed with equity. Nevertheless this does seem to raise a point given that the company will be cash strapped in the future and so raising 12 million seems difficult from internal sources (John 2007). Nevertheless, this point was ignored for the analysis due to absence of any concrete numbers.
It seems that the company is better off investing in the project. As a summary measure, the NPV of the project is positive and stands at ~19mn pounds. This despite the fact that the company will be facing increased distribution costs due to the far away location of the market, that is, East Asia. Distribution and administration costs were previously 25% of the company’s sales since it catered to European markets, which are nearer to Britain. However, the more distant East Asian markets now demand that the company’s distribution costs as a percentage of sales increase to 33% of sales (Collins 2003).
The company is invariably following a contraction strategy. It feels that the demand of its products is going to fall in the foreseeable future due to the forecasted European recession driven by the austerity measures of the various European governments (Reilly 2007). Moreover, it has also been having trouble renewing its contracts for the same reasons. So looking forward, it has decided to rid itself of the excess capacity it had built as part of its organic growth. Nevertheless, the new contract that it has been presented with recently seems to merit otherwise. The new contract as already mentioned is profitable as it enjoys a positive NPV (Smith 2005). Hence there is every reason that the company should follow it. It is true that this will make the company deviate from its stated strategy but the financials always speak the truth. Moreover, the financial forecasts created for the analysis are not really forecasts but are actually contracted numbers at least in the case of revenue figures (Fall 2006).
新西兰毕业论文代写
由于获得所有需要的信息，以净现值分析被用来作为折现现金流量法。此外，股权自由现金流现金流量法被用来作为公司将获得没有债务融资的新合同，因为这样做会导致违反公约（2008）。的折扣率，资本资产模型是用来达成公平的折扣率为20%。使用一个公平的折扣率是适当的，由于项目融资与股权。然而这似乎提高点，公司将现金绑在未来，因此提高12000000似乎难从内部来源（约翰2007）。然而，这一点被忽略的分析，由于没有任何具体数字。
看起来公司是更好的投资项目。作为一个简要的措施，净现值的项目是积极的，站在~ 19mn磅。尽管事实上，公司将面临增加配送成本由于遥远位置的市场，这是，东亚。分布及行政费用以前该公司25%的销售因为它迎合了欧洲市场，这是接近英国。然而，更遥远的东亚市场需求，公司的配送成本占销售额的百分比增加销售额的33%（2003）。
公司始终是以下收缩战略。它认为，需求的产品将在可预见的未来，由于欧洲经济衰退的预测驱动的紧缩措施的欧洲各国政府（蕾莉2007）。此外，它也一直有麻烦，更新其合同同样的理由。因此，它已决定摆脱它的产能过剩已经建立了作为其有机增长。然而，新的合同，它已提出最近似乎值得其他。新合同已经提到的是有利可图的，因为它有正的净现值（2005）。因此，有充分理由，公司应该遵守它。这是真的，这将使公司偏离其既定策略但金融类股一直说真话。此外，财务预测，为分析不真的预测，但实际上是合同的数量至少在案件的收入数字（2006秋季）。
