What is the difference between independent and mutually exclusive projects?

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Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows.

The CFO also made subjective risk assessments of each project, and he concluded that both projects have risk characteristics that are similar to the firm’s average project. Allied’s WACC is 10%.

You must determine whether one or both of the projects should be accepted.

a. What is capital budgeting? Are there any similarities between a firm’s capital budgeting decisions and an individual’s investment decisions?

b. What is the difference between independent and mutually exclusive projects? Between projects with normal and non-normal cash flows?
c.
1. Define the term net present value (NPV). What is each project’s NPV?

2. What is the rationale behind the NPV method? According to NPV, which project(s) should be accepted if they are independent? Mutually exclusive?

3. Would the NPVs change if the WACC changed? Explain.
d.
1. Define the term internal rate of return (IRR). What is each project’s IRR?

2. How is the IRR on a project related to the YTM on a bond?

3. What is the logic behind the IRR method? According to IRR, which project(s) should be accepted if they are independent? Mutually exclusive?

4. Would the projects’ IRRs change if the WACC changed?

What areas does your company need to improve and what areas are they doing well based on these ratios?

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Step #1: Identify a public company that you’re interested in exploring for a case study presentation. Go to the company’s website and review their annual report and financial statements. After your review prepare a narrated PowerPoint addressing the following points. Please use Excel documents when preparing tables or proformas.

Select two liquidity, two profitability and two debt/leverage financial ratios.

Calculate each ratio for your selected company and compare to industry standards.

What areas does your company need to improve and what areas are they doing well based on these ratios? What can they do within their operations to make those improvements?

Identify one potential growth area for your company.

Prepare a proforma income statement based on this estimated growth rate, for example how might it affect revenues and expenses.

How would you recommend your company finance this growth initiative and why?

What are the risks associated with your financing selection?

Review the rubric for this assignment which is listed in this weekly module.

Step #2: Prepare a 10-15 narrated PowerPoint slide outlining the key points above (see the instructions for creating a narrated PowerPoint).

Be sure to cite the sources you’ve referenced for this PowerPoint using the Intro to APA guide.

Analyze financial and investment decisions that add value to the organization.

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Competencies
In this project, you will demonstrate your mastery of the following competencies:

Analyze financial and investment decisions that add value to the organization
Analyze financing options to maximize investor value

You are a financial analyst for the chosen business that you selected during your Module Two Journal assignment. Your supervisor has discovered last minute that your business’s board of directors is looking for updates on the business’s financial health.

Your supervisor has asked you to write a report regarding the business’s current financial health and the available financial options for improving the business. You’ve also been asked to make recommendations as to which options the business should choose to best support its financial health.

Your supervisor will then use your report to present to the business’s board of directors, whose members all have varying levels of knowledge in terms of finance.

Identify an interesting question associated with a chosen topic and analyze this question.

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Amazon VS eBay
The project is the final requirement of your BSc degree. A good project demonstrates that you can
apply the techniques and knowledge acquired on the program-me to conduct an independent piece
of research. The project is worth 30 credits at Level 6 and so the effort you put in completing the project should be commensurate to your effort in undertaking a taught Level 6 module.
A good project allows students to show that they
•  identify an interesting question associated with a chosen topic and analyze this question;
• know the relevant literature on their chosen topic;
•  demonstrate a good grasp of techniques (statistical, numerical or theoretical) relevant for analyzing the question;
• present the results of their analysis in a clear and convincing manner, within the word limit of 5,000 words (excluding bibliography).

Discuss some methods with your classmates for correcting the potential problems of the asymmetric information.

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Identify an example of a management scenario from current events involving adverse selection or moral hazard.

Discuss some methods with your classmates for correcting the potential problems of the asymmetric information.

Identify and explain the scope of three external dispute resolution schemes approved by ASIC for the financial services sector.

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Client Needs
Identify and explain the scope of three external dispute resolution schemes approved by ASIC for the financial services sector.

What are the main differences, from a purchaser’s point of view, of acquiring a property through private sale.

Explain how the mortgage franchisee system operates in Australia.

Explain why age is an important determinant in approving home loans.













Evaluate the potential impact (social, environmental) of your business on different types of stakeholders.

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 Develop a business plan for a social enterprise.
Produce a PowerPoint presentation of maximum 8 slides outlining the following:

1. Clear and concise presentation of the social problem (justifying the need for a social enterprise).

2. Clear presentation of your business idea, social purpose, business model and description of product(s)/service(s).

3. Present potential sources of start-up finance and subsequent revenue streams.

4. Evaluate the potential impact (social, environmental) of your business on different types of stakeholders.

What are the advantages and the disadvantages of a merger?

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As part of the financial planning process, a common practice in the corporate finance world is restructuring through the process of mergers and acquisitions (M&A). It seems that on a regular basis, investment bankers arrange M&A transactions, forming one company from separate companies.

What are the advantages and the disadvantages of a merger? In your response, provide an example of either – a merger that was successful, or one that was unsuccessful.

Compare your allocated company with the two similar companies and determine which of the two is the most similar.

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This is the first task your manager has asked you to complete independently, and you want to make sure you impress! You know from your peers that Lucy is very busy and will not read any report that is greater than four pages long. Luckily, you took notes when the task was assigned to you, which should be strictly followed to prepare the report. These are as follows:

1. A description of the business and the nature of its operations. This should focus on providing a short explanation of the business’s history, how it generates revenue, and who forms its customer base (5 Marks);

2. An analysis of the financial performance and financial position of the company (35 Marks);

3. Identify two risks from reading the reports prepared by key management personnel (i.e. Board Chair and/or CEO) in the 2020 annual report that may impact the company’s future financial performance and/or financial position. You should explain clearly how the risks you identify may impact on the ratios discussed
in part 2 above (10 Marks);

4. Using two EV Multiples and two Equity Multiples of two similar companies to your assigned company:

a) Provide a market valuation range and mid-point of your allocated company’s outstanding equity. Provide the evidence of data collected with proper referencing and the calculations to substantiate your valuation. (10 marks)

b) Compare your allocated company with the two similar companies and determine which of the two is the most similar. Provide evidence of the comparison. (10 marks)

c) Based on this comparison, narrow the valuation range and mid-point found in part

(a) to something more reasonable. Show how you go about implementing this adjustment. (5 marks)
5. A short description on whether you would recommend Felicity Trust continuing its involvement in the syndicate loan. (5 marks)