Got a tricky question? Receive an answer from students like you! Try us!

Duke Company: Calculations for the Project - Assignment Example

Only on StudentShare
High school
Author : vandervortkody
Assignment
Finance & Accounting
Pages 8 (2008 words)

Summary

Calculations for the Project Cash Flow Period Cash Flows NPV $35,366.48 Dec-09 556,000.00 Dec-10 128,000.00 Dec-11 440,000.00 Dec-12 550,000.00 NPV at 15% rate for a period of three years is $ 35, 366.48 Cost of Capital = Dividend per Share + Expected Future Earnings Market Price Share 313.38 + 0.16 21.56 14.72 = 15% Project Cost Flow Project cash flow PVIF@ 15% P.V Years 1 2 3 556000 128000 440000 0.8696 0.7561 0.6575 483497 96781 289300 Less initial capital 372000 +NPV 497578 IRR using 15% Years Cash flow PVIF@ 15% P.V 1 2 3 556000 128000 440000 0.8696 0.7561 0.6575 483497 96781 289300 869578 Using 10% Years Cash flow PVIF@ 15% P.V 1 2 3 556000 128000 440000 0.8696 0.7561 0.6575 505459.6 10…

Extract of sample
Duke Company: Calculations for the Project

This means that our assets will be exposed to varied amounts of risk. Among them will be credit risk. There are assets which will not be fully paid for but will be still be under operations in the business. This means they will be exposed to credit risks. Of importance will be exposure of these assets to operational risks. The assets will still be used for operations in the business. This means there will be various operational risks to be encountered in the company. There will be market risks to be encountered. This would be reflected by the dangers of our assets being declared obsolete. The market is ever changing and the expectations of our customers are also changing (Clyde and Roman, 2007). This would be a challenge to be encountered. Depreciation will also be put into consideration as it will be a mandatory activity to counter all the above mentioned risks. Cost of assets. ...
Download paper
Not exactly what you need?

Related Essays

Finance and Accounting Term Paper: 3 questions (calculations)
0 ? 8,000,000 ?8,800,000 ?9,600,000 ?7,200,000 ?6,000,000 Variable costs ?0 ? 5,500,000 ?6,050,000 ?6,600,000 ?4,950,000 ?4,400,000 Contribution ?0 ?2,500,000 ?2,750,000 ?3,000,000 ?2,250,000 ?1,600,000 Additional Fixed costs ?0 ?1,150,000 ?1,150,000 ?1,150,000 ?1,150,000 ?1,150,000 Annual net cash flow ?0 ?1,350,000 ?1,600,000 ?1,850,000 ?1,100,000 ?450,000 The total working capital to be reclaimed at the end of the period =?1,350,000 (?900,000 + ?450,000) The salvage value = ?425,000 (10% ? ?425,000,000). Total variable per unit (Materials and Labour) = ?55 (?30+?25). Year t Cash inflows…
10 pages (2510 words)
Renewable Energy Project Financial Plan
Duke Energy alongside the plan will be depended on a current purchase by Duke Energy (DUK) within the solar energy. The goal is to debate on the project’s decision and cost evaluation process. This plan will entail project cost of capital, cash flows, cash flow statement, approximation of capital in every hazard classification, risk class of assets, exhaustive financial features of the enterprise, as well as the validation debate of whether the project must be undertaken. Black Mountain Solar Project Duke Energy currently bought an Arizona solar farm investment from Solon Corporation. The…
4 pages (1004 words)
Procter and Gamble research report
The company management has responded to investors worry on costly structure and slow top line growth rate by through a cost saving plan worth $10 billion. This is expected to reduce the headcount that will enable the company achieve its earning per share growth rate forecast to 8% and 10% in free up funds that can be reinvested. Third quarter results shows that the organic sales have increased by 3% from its previous quarter but the operating profit decreased by 11%. The management of the company lowered the earning per share to $3.82-$3.88 from the previous earning of $3.93-$4.08 as a result…
5 pages (1255 words)
Financial Analysis: Tesco
Analyzing the financial status of Tesco with the assistance of financial indicators depicts that the company has no wonder strived throughout the time of recession and earned enormous profit. But with the passage of time the company is losing it performance ability. Evaluating the performance of Tesco with its competitors and past year performance has been declined. The main area company has found to lose its ability is the operational activities. Working capital of the company is inefficient that has further lost the interest of the investors and seems to be a big obstacle in the times to…
6 pages (1506 words)
Calculations
352,000 Purchases ?150,000 Opening Inventory ?65,000 Cost of Goods Available for Sale ?215, 000 Less Closing inventory ?70, 000 Cost of Goods Sold ?145, 000 Gross Profit ?207, 000 Property depreciation (5% using straight line method) ?5100 Plant and equipment depreciation (20% ) ?19500 Distribution cost ?58,000 Dividends paid ?12, 000 Administrative expenses outstanding ?4,500 Less distribution costs prepaid ?10, 000 Total Expenses ?77100 Net Profit before Tax ?129900 Corporation tax (22%) ?17500 Net Income ?112,400 c) Statement of financial position Julyfest Limited Balance Sheet for the year…
6 pages (1506 words)
project
The total long term assets for this company in the year 2010 were recorded to be $86,113,000. As time went on, the company continued improving and by the year 2013, this value was recorded to be $142,431,000. In terms of liabilities, the percentage of liabilities for the company has been recorded to decrease substantially. The company has been able to reduce liabilities to a desirable level. This means that the company is in a position to generate more profit and improve on stocks and products. There is a reason, therefore to conclude that this company has high competitive abilities. There is…
4 pages (1004 words)
Financial Calculations for a new hair care product
And all the products have to pass through research along with the specific product development phases. Keeping in view these facts, the above table shows a list of assumptions made for the development of the hair care product. Moreover, these assumptions would serve as the baseline for calculating the revenue and costing of the product, marginal costing, sales / production basis and the break even analysis (Bernstein and Wild, 2000).Breakeven point Calculations:- …
5 pages (1255 words)