Question

In: Finance

The company is T-Mobile Model a typical investment for the company, with the intent of understanding...

The company is T-Mobile

Model a typical investment for the company, with the intent of understanding the cash flow patterns and risks in the investment.

Solutions

Expert Solution

Investment for this company which consider the cash flows and risk associated with investment could be into to the field of optical fibres into Much lesser developed area.

Cash associated with projects must be for a long period of time. This will require instant investment but the required return will start to accrue after a certain span of time.

Risk associated with it could be the success factor associated with this project as well as cash flow generation of this project should meet with the repayment schedule if financed with debt.

Projects are financed with debt ,so there is high risk exposure involved because as the default risk that are associated with debt. This project will start to yield in longer periods but that will be needed to be repaid at certain shorter interval and liquidity crunch could be there as the periodic cash inflows are for longer and periodic cash outflows are inshorter so company may face of the liquidity crisis.

Cash flows associated with project must be regular and consistent. It helps in in avoiding any kind of liquidity crisis .

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

In the potential outcomes model (and in science), there is a principle called “intent to treat”...
In the potential outcomes model (and in science), there is a principle called “intent to treat” (ITT) which says that you should evaluate people based on their assignment to a treated and untreated group and not based on whether or not they actually took a drug. For example, suppose we have a new diet we are trying to evaluate. Suppose we take a random sample of college students, and assign (randomly) half to a treatment group where they take the...
Mobile phone manufacturers largely distribute their products through service providers like T-Mobile and AT&T and not...
Mobile phone manufacturers largely distribute their products through service providers like T-Mobile and AT&T and not directly to the customer. Why do you believe this is so? Do you think this is the most efficient method?
The model with exogenous taxes (T=T̅) has a multiplier on investment of 1/(1-mpc). The model with...
The model with exogenous taxes (T=T̅) has a multiplier on investment of 1/(1-mpc). The model with proportional taxes (T=tY) has a multiplier on investment of 1/(1-mpc(1-t)). Explain in words why they differ.
build a model for used mobile market and elaborating to your model
build a model for used mobile market and elaborating to your model
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones use their phone at least once per hour, 25% use their phone a few times per day, 8% use their phone morning and evening, and 12% hardly ever use their phones. The remaining 4% indicated that they did not know how often they used their mobile phone. Consider a sample of 180 mobile phone users. (a) What is the probability that at least 90...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones use their phone at least once per hour, 25% use their phone a few times per day, 8% use their phone morning and evening, and 12% hardly ever use their phones. The remaining 4% indicated that they did not know how often they used their mobile phone. Consider a sample of 180 mobile phone users. (a) What is the probability that at least 90...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones use their phone at least once per hour, 25% use their phone a few times per day, 8% use their phone morning and evening, and 12% hardly ever use their phones. The remaining 4% indicated that they did not know how often they used their mobile phone. Consider a sample of 190 mobile phone users. What is the probability that at least 90 use...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones...
A consumer mobility report indicates that in a typical day, 51% of users of mobile phones use their phone at least once per hour, 25% use their phone a few times per day, 8% use their phone morning and evening, and 12% hardly ever use their phones. The remaining 4% indicated that they did not know how often they used their mobile phone. Consider a sample of 160 mobile phone users. (a) What is the probability that at least 80...
1. This month Sprint and T-Mobile announced to merge into one $146 billion company. The two...
1. This month Sprint and T-Mobile announced to merge into one $146 billion company. The two companies argued that the merger will lower costs, “create competition and lower prices across wireless, video, and broadband” as well as other 5G technologies. a) List all, and describe two of, the steps you will take to examine whether or not such a merger should be allowed to go ahead. b) How would an economist justify (defend) government involvement in the economy? c) Give...
A foreign direct investment is acquiring certain “…assets with the intent to control and manage them.”  (International...
A foreign direct investment is acquiring certain “…assets with the intent to control and manage them.”  (International Business, 2012). These types of investments are long term, as the time, money and resources that are put into acquiring them are vast! A “foreign direct investment is when an individual or business owns 10% or more of foreign company…it [is] part of his or her stock portfolio.” (Amadeo, 2018). Foreign direct investment helps countries thrive that have them within it. These operations aid...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT