The discounted payback for each project is also in the fifth year, but further along in the fifth year for Project a compared to the simple payback. The net present value of Project a is $18,269. The net present value for Project B. is $18,690. The Continue Reading...
Caledonia Products a) When making capital budgeting decisions, Caledonia should focus on cash flows rather than accounting profits. The argument in favor of cash flows is simple -- cash flows are what drive company value, more so than economic profi Continue Reading...
Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? After studying the Caledonia case I came to the conclusion that the reason that Caledonia should Continue Reading...
Piper Alpha Disaster An Environmental and Safety Management Analysis of the Disaster that Occurred on the Piper Alpha Oil Rig off the Coast of Scotland Piper Alpha (Seconds from Disaster, 2013) The Incident The Piper before the Explosion Timelin Continue Reading...
This will also show the degree to which the project is vulnerable to potential changes on the market that would influence its main figures, including the volume of sales. Another useful tool that can be used is a simulation. A simulation would allo Continue Reading...
