Write a report on Dubai's company Al Rawabi & its new product is cheese & coffee with new packaging & flavors.
Write the report as if it is for your workplace boss who has asked for a summary of the most important information concerning the country and their business implications, and based on that your recommended strategy to introduce a product there with proper justification.
The Report should contain: 1. Strategic Focus and Plan; 2. Goals; 3. Situational Analysis; 4. SWOT Analysis; 5. Promotional Strategy; and 6. Price Strategy. 7. Target. 8. Five Year Prediction
In: Economics
Training for New Computer Systems Enhances Implementation
Many health systems have been upgrading to new computer systems. If you have ever experienced this kind of change, you know that it is quite a complex process with many opportunities to derail the project. Several years ago, a local health system implemented a computer upgrade to a new electronic medical record (EMR) system. Management and administration had been preparing for this upgrade for several years. The administration allocated the necessary resources to make the implementation a success not only financially but also in terms of increasing information technology (IT) staff and training of “superusers” or champions. These “superusers” were from within the organization and from every level of the organization and were given extensive training well ahead of other users. In preparation for this change, management spent time and resources educating those working within the organization about the importance of this upgrade in achieving the mission of the organization by increasing connectivity with other health systems, maximizing reimbursement, and achieving meaningful use compliance (innovations–values fit). This pre-education enhanced the implementation climate by helping the intended users understand that the transition to an upgraded EMR was an organizational priority, thereby enhancing the implementation effectiveness. Over several months, the targeted users (nursing staff, providers, managers, front desk workers, and coding and billing personnel) were trained in preparation for the change. Target dates for the change were set, and clinic schedules were reduced to allow time for using the new system (another example of management support). Although it was a bumpy ride, the upgrade to the new computer system, as well as the implementation effectiveness, was very successful. Others may argue that the innovation effectiveness (the benefit of the new computer system to the organization and ease of use) is not quite so apparent.
Questions
1. Who are/would (be) the champions in your organization? What qualifies them to be champions, or which qualities do they possess?
2. When your organization has implemented a major change, did it have the benefit of a strong implementation climate? Which steps did the organization take to ensure successful implementation effectiveness? What could it have changed to improve the climate and effectiveness?
3. How did your organization determine the success of the implementation of the new policy or innovation? Which measures were evaluated? Should the organization have reexamined the implementation or made the decision to change course? Why or why not?
In: Nursing
Your company plans to raise $100 million to finance its new two-year project by issuing new two-year bonds (with annual coupons and annual compounding). Your company and its new project are currently considered risk-free. Unfortunately, covenants in the preexisting debt issued during harder times impose restrictions on the amount of new debt. Specifically, if the face value of the new bond issue is below $100 million, your company can promise to pay an annual coupon of up to 5%. However, if the face value of the new issue is between $100 and $110 million, your company can only promise to pay an annual coupon of up to 1% on the entire issue. Your company is not allowed to issue bonds with the face value above $110 million. The zero-coupon yield curve for the next two years is as follows:
|
Year |
Rate |
|
1 |
5% |
|
2 |
6% |
Will your company be able to finance this new project?
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a. |
My company will be able to raise $100.00 million and will finance the project. |
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b. |
My company will be able to raise $99.93 million and will not finance the project. |
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c. |
My company will be able to raise $98.21 million and will not finance the project. |
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d. |
My company will be able to raise $101.82 million and will finance the project. |
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e. |
My company will be able to raise $98.17 million and will not finance the project. |
In: Finance
Firm A’s new project needs $325,000 for new fixed assets (long term assets), $160,000 for additional inventory and $35,000 for additional accounts receivable. This is a five year project. Use straight line depreciation approach to calculate the depreciation expenses. By the end of the fifth year, the value of the fixed assets = 0. However, the market value of the assets = 25% of their original cost. At the end of the project, the net working capitals tend to return to its original level. Annual sales is expected to be $554,000 and costs = $430,000. The tax rate = 35%. Required rate of return = 15%.
1.What is the initial cost of this project?
2. What is the operating cash flows from year 1 to year 4
3. What is the operating cash flows in year 5 (last year)
4. Calculate npv
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Project S and Project L are two projects under consideration, both projects have 3-year lives. |
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The projects' cash flows are as follows (in thousands of dollars): |
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Year |
CFL |
CFS |
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0 |
($200) |
($200) |
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1 |
$40 |
$150 |
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2 |
$100 |
$60 |
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3 |
$120 |
$50 |
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(1) What is each project’s NPV? (5 points) |
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WACC |
10% |
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NPVL = |
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NPVS = |
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(2) What is each project’s IRR? (6 points) |
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IRRL = |
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IRRS = |
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(3) What is the crossover rate of the NPV profiles of the two projects? (3 points) |
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crossover rate = |
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(4) Find the MIRRs for Projects L and S. (6 points total) |
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MIRRL = |
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MIRRS = |
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In: Finance
17. Project Evaluation. Ilana Industries Inc. needs a new lathe. It can buy a new high-speed lathe
for $1 million. The lathe will cost $35,000 per year to run, but it will save the firm $125,000 in
labor costs and will be useful for 10 years. Suppose that, for tax purposes, the lathe is entitled to
100% bonus depreciation. At the end of the 10 years, the lathe can be sold for $100,000. The
discount rate is 8%, and the corporate tax rate is 21%. What is the NPV of buying the new lathe?
(LO9-2)
In: Finance
New-Project Analysis
Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $33,000 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. Working capital would increase by $35,000 initially, but it would be recovered at the end of the project's 5-year life. Madison's marginal tax rate is 40%, and a 12% cost of capital is appropriate for the project.
Calculate the project's NPV, IRR, MIRR, and payback. Do not round intermediate calculations. Round the monetary value to the nearest dollar and percentage values and payback to two decimal places. Negative values, if any, should be indicated by a minus sign.
NPV: $
IRR: %
MIRR: %
The project's payback: years
Assume management is unsure about the $110,000 cost savings - this figure could deviate by as much as plus or minus 20%. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative values, if any, should be indicated by a minus sign.
Calculate the NPV if cost savings value deviate by plus 20%.
$
Calculate the NPV if cost savings value deviate by minus 20%.
$
Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the working capital (WC) requirement. She asks you to use the following probabilities and values in the scenario analysis:
| Scenario | Probability | Cost Savings | Salvage Value | WC |
| Worst case | 0.35 | $ 88,000 | $28,000 | $40,000 |
| Base case | 0.35 | 110,000 | 33,000 | 35,000 |
| Best case | 0.30 | 132,000 | 38,000 | 30,000 |
Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Do not round intermediate calculations. Round the monetary values to the nearest dollar and a coefficient of variation to two decimal places. Negative values, if any, should be indicated by a minus sign.
The project's expected NPV: $
Standard deviation: $
Coefficient of variation:
In: Finance
New-Project Analysis
Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $33,000 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.42%. Working capital would increase by $35,000 initially, but it would be recovered at the end of the project's 5-year life. Madison's marginal tax rate is 40%, and a 11% WACC is appropriate for the project. Enter negative answers with minus sign.
Scenario |
Probability |
Cost Savings |
Salvage Value |
WC |
| Worst case | 0.35 | $ 88,000 | $28,000 | $40,000 |
| Base case | 0.35 | 110,000 | 33,000 | 35,000 |
| Best case | 0.30 | 132,000 | 38,000 | 30,000 |
In: Finance
Do you think the new tax reform can make the rich richer?
Just pick one new tax rules and discuss it further.
In: Accounting
New-Project Analysis
Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $33,000 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. Working capital would increase by $35,000 initially, but it would be recovered at the end of the project's 5-year life. Madison's marginal tax rate is 25%, and a 10% cost of capital is appropriate for the project.
Calculate the project's NPV, IRR, MIRR, and payback. Do not round intermediate calculations. Round the monetary value to the nearest dollar and percentage values and payback to two decimal places. Negative values, if any, should be indicated by a minus sign.
NPV: $
IRR: %
MIRR: %
The project's payback: years
Assume management is unsure about the $110,000 cost savings - this figure could deviate by as much as plus or minus 20%. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative values, if any, should be indicated by a minus sign.
Calculate the NPV if cost savings value deviate by plus 20%.
$
Calculate the NPV if cost savings value deviate by minus 20%.
$
Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the working capital (WC) requirement. She asks you to use the following probabilities and values in the scenario analysis:
| Scenario | Probability | Cost Savings | Salvage Value | WC |
| Worst case | 0.35 | $ 88,000 | $28,000 | $40,000 |
| Base case | 0.35 | 110,000 | 33,000 | 35,000 |
| Best case | 0.30 | 132,000 | 38,000 | 30,000 |
Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Do not round intermediate calculations. Round the monetary values to the nearest dollar and a coefficient of variation to two decimal places. Negative values, if any, should be indicated by a minus sign.
The project's expected NPV: $
Standard deviation: $
Coefficient of variation:
In: Finance
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In: Accounting