StudentShare solutions
Triangle menu

Case study - Essay Example

Not dowloaded yet

Extract of sample
Case study

o 600,000 sterling pounds, adding this amount to the working capital of 180,000 pounds amounts to an initial cost of 780,000 pounds. The overheads have been adjusted from the previous 47,000 pounds to 30,000 pounds in a year. Question One b i) Pay back Year Cash flow ? (?000) Cum. CF ? (?000) 0 (600) (600) 1 147,000 (453) 2 157,000 (296) 3 157,000 (139) 4 187,000 48 5 187,000 23 3 years and (139/ 187) x 12 3 years and 8.9 months ii) Net Present Value Year Cash flow ? DF 12% PV ? 0 -600,000 1.000 -600,000 1 147,000 0.893 131,271 2 157,000 0.797 125,129 3 157,000 0.712 111,784 4 187,000 0.636 118,932 5 187,000 0.567 106,029 The net present value is -6,855 pounds. Question One C Using NPV to make decisions regarding the investment of a project is advantageous in that the NPV takes into consideration the time value of money and gives priority to the risks that will be involved as well as the profitability of the project. A negative NPV implies zero returns therefore I would advice the managers to reject the project. Question Two Whenever a bank is granting or making a loan facility to a client, a number of factors are considered by the authorizing persons. These are the factors that do determine whether the client is eligible to receive the loan or not. Factors sometimes do vary depending on whether the client is a person or a business. The bank looks at the credit history of the borrower. The history of the client’s credit situation is based on the score or the rating that is mostly done by agencies, for instance, Transition. The credit score that a client is awarded determines the eligibility to receive the loan facility. The bank acquires the commercial credit report from an agency on the company’s credit history. The reports normally comprise of the payment history information, past credit scores and information on the public filings done (Crawford 2013). Existence or occurrence of negative information from the report for instance late payments or tax liens outstanding degrades the company credit score. The most obvious response from thee bank is seeking an explanation from the company regarding the occurrence. The advice given to the company is to review a copy of the report, after requesting it from the agency responsible. This gives the company the opportunity to correct any discrepancies that exist. The business credit reports are bases on the tax allegiance (Crawford 2013). The bank also looks at the financial position of the company. The bank normally request to be provided with the latest statements that justify the working capital. Working capital ranges from the current assets to first hand cash to the availability of finances to pay the current debts without affecting the normal running of a business. Working capital defines what is left after deducting all the current liabilities. When the working capital is inadequate, the Implication of the assumptions to be made is that the firm or business is facing the risk of collapsing. The consequence of this is facing a rejection on the ...Show more

Summary

A Case Study on Perry Rose Plc Name: Course: Professor: University: City and State: Date: A Case Study on Perry Rose Plc Introduction This is a case study of the Perry Rose Plc that is located in Bromsgrove Surrey. This report will involve answering of all the three studies that have been presented in the case study…
Author : madelyn34
Case study essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Case study"
with a personal 20% discount.
Grab the best paper

Related Essays

Case Study
All the information about the three potential candidates for Managerial position has been summarized in the given table. The information in the table shows that Carmen is a lady with
6 pages (1500 words) Essay
Case study
However, the experiments done on unsuspecting human subjects by Doctor Neisser called into question the morality and ethics of experimentation on human subjects. It was Doctor Rudolf Virchow, a Berlin
2 pages (500 words) Essay
Case study
10). Culture is diverse; hence whatever is valued by one community may not be so to the other. In health institution, Elaine (2004, p. 250), observes that patients from the same ethnic background are
2 pages (500 words) Essay
Case study
In this context, a case is defined as “the singlemost defining characteristic of case study research” (Merriam, 1998, p.27). The marketing research proposed in this paper, is based on the
4 pages (1000 words) Essay
Case study
percent, but a politically inexperienced governor feels that it is necessary to eliminate these programs thought it is necessary to eliminate the programs. Being the prisons director, I decided to give my response to the inexperienced governor that explains why the policies
3 pages (750 words) Essay
Case study
Today, the meaning of propaganda is used comprehensively to connote public relations. The government uses mass relations to disseminate accurate information on policies and their adversaries. The two frequent features that presented propaganda’s new possibilities were mass
1 pages (250 words) Essay
Case study
The amount of organizational takeovers and company mergers has been considered a standard of measure of the level of economic development. In most cases, company takeovers have been associated with incidents
4 pages (1000 words) Essay
Case Study
sively become more complicated, labor shortages will become evident in most of the mature industries and companies especially in the developed countries. At the same time, a more than needed number of employees with skilled talent are likely to be seen in other areas and
2 pages (500 words) Essay
Case study
With the decline in sugar and cocoa production, many people became unemployed. Urbanization in the country, as indicated in the case study gave people hope for better non-agricultural jobs. Many left
2 pages (500 words) Essay
Case study
A company should embrace technology in handling production process. Bella India has skilled personnel as evidenced in the way management tackles technical issues such as reduction in transitional time between St Louis and
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation