BS are considered Even the most simple single period return on investment ratio

Bs are considered even the most simple single period

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Results-NWC Recovery NPV $10,425 (000 ommited) IRR 21.2% 2 3 4 5 6 7 8 9 18,250 18,250 18,250 18,250 18,250 18,250 18,250 18,250 60% 62% 65% 67% 70% 73% 76% 79% 10,950 11,388 11,844 12,317 12,810 13,322 13,855 14,409 30 31 32 34 35 36 38 39 27 27 27 27 27 27 27 27 406 422 439 456 474 493 513 534 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 105 109 114 118 123 128 133 138 146 152 158 164 171 178 185 192 118 122 127 132 138 143 149 155 97 101 105 109 114 118 123 128 37 38 39 41 43 44 46 48 8 8 9 9 9 10 10 11 406 422 439 456 474 493 513 534 4,058 4,220 4,389 4,565 4,747 4,937 5,135 5,340 4,170 4,337 4,510 4,691 4,878 5,073 5,276 5,487 7,726 8,035 8,357 8,691 9,039 9,400 9,776 10,167 1,424 1,480 1,540 1,601 1,665 1,732 1,801 1,873 288 299 311 323 336 350 364 378 17,665 18,372 19,107 19,871 20,666 21,493 22,352 23,246 177 184 191 199 207 215 224 232 17,489 18,188 18,916 19,672 20,459 21,278 22,129 23,014 6,516 6,980 7,477 8,009 8,580 9,190 9,845 10,546 2,851 2,965 3,083 3,207 3,335 3,468 3,607 3,751 1,399 1,455 1,513 1,574 1,637 1,702 1,770 1,841
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2,424 2,473 2,524 2,577 2,632 2,689 2,749 2,811 206 212 219 225 232 239 246 253 500 500 500 500 500 500 500 500 13,896 14,585 15,316 16,092 16,915 17,789 18,717 19,702 13,896 14,585 15,316 16,092 16,915 17,789 18,717 19,702 3,769 3,787 3,791 3,779 3,751 3,703 3,635 3,544 21.3% 20.6% 19.8% 19.0% 18.1% 17.2% 16.3% 15.2% 1,437 1,495 1,555 1,617 1,682 1,749 1,819 1,892 469 487 507 527 548 570 593 617 234 244 253 264 274 285 296 308 1,672 1,739 1,808 1,880 1,956 2,034 2,115 2,200 1,006 67 70 72 75 78 81 85 3,769 3,787 3,791 3,779 3,751 3,703 3,635 3,544 500 500 500 500 500 500 500 500 0 0 0 0 0 0 0 0 (1,006) (67) (70) (72) (75) (78) (81) (85) 3,263 4,220 4,221 4,207 4,176 4,125 4,054 3,959 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,263 4,220 4,221 4,207 4,176 4,125 4,054 3,959 2,569 2,587 2,591 2,579 2,551 2,503 2,435 2,344 14.7% 14.2% 13.7% 13.1% 12.5% 11.8% 11.0% 10.2% used to do the calculations. Scoring: 10 points each
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bove on 1a-d=40 points for Q1 or incorrect not to 5 know it's incorrect y broken down into 5 any reasonable explanation d don't keep 10 deduct 1-2 for lack of clarity ures +/-Change in NWC of NWC" scenarios, reen or red light. us. It is logic 3 knowing difference es are collected, between 'recovery' red as a relevant cash and 'no recovery' 3 knowing how terminal IRR value might influence 15.0% FCF and therefore 8.0% NPV&IRR metrics no recovery 4 definite red or green 10 decision very; red light without deduct 2 if hedged y numbers are inflated. for this project. CF definition. nd. It is not 4 aware of profit fit margin comes from margin metrics on consider return on row 84 lows from the 3 clear green or red decision n mistake. knowing that profit margin is defective averaged? decision criterion assignment 3 with explanation cision criteri 10 ars in the future and it's 10 recovery. ht.
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decision easy up to 10 reasonable o the profit margin recap of Q1a-c with definite veloped to look at green or red 10 decision 10 40 overall on Q1
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10 18,250 82% 14,986 41 27 555 3.5 144 200 161 133 50 11 555 5,554 5,707 10,574 1,948 394 24,176 242 23,935 11,297 3,901 1,915
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2,875 261 500 20,749 20,749 3,427 14.2% 1,967 641 321 2,288 88 3,427 500 0 (88) 3,839 10 $2,288 $10,000 16,127 2,227 9.3%
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FINANCING (DEBT-EQUITY) DECISION CENTRAL VIRIGINIA LONG-TERM ACUTE CARE CENTER ANSWER BOXES BEGIN AT ROW 74 Inputs: External Financing Needed 15,000,000 building Existing Common Shares 100,000 start-up shares Existing Long-Term Debt 0 from case info ENTER DATA IN THE BLUE-COLORED CELLS Interest Rate on Existing Debt 5.4% none - a start-up Interest Rate on New Debt 8.0% from case info Boom EBIT 4,500,000 arbitrarily above optimistic forecast Bust EBIT -840,000 arbitrarily below pessimistic forecast
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  • Finance, Debt, Generally Accepted Accounting Principles, NWC, Earnings before interest and taxes

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