Capital Budgeting Case
Your company is thinking about acquiring another corporation. You have two choices—the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data:
Corporation A
Revenues = $100,000 in year one, increasing by 10% each year
Expenses = $20,000 in year one, increasing by 15% each year
Depreciation expense = $5,000 each year
Tax rate = 25%
Discount rate = 10%
Corporation B
Revenues = $150,000 in year one, increasing by 8% each year
Expenses = $60,000 in year one, increasing by 10% each year
Depreciation expense = $10,000 each year
Tax rate = 25%
Discount rate = 11%
Compute and analyze items (a) through (d) using a Microsoft® Excel® spreadsheet. Make sure all calculations can be seen in the background of the applicable spreadsheet cells. In other words, leave an audit trail so others can see how you arrived at your calculations and analysis. Items (a) through (d) should be submitted in Microsoft® Excel®; indicate your recommendation (e) in the Microsoft® Excel® spreadsheet; the paper stated in item (f) should be submitted consistent with APA guidelines.
a. A 5-year projected income statement
b. A 5-year projected cash flow
c. Net present value (NPV)
d. Internal rate of return (IRR)
e. Based on items (a) through (d), which company would you recommend acquiring?
f. Write a paper of no more 1,050 words that defines, analyzes, and interprets the answers to items (c) and (d). Present the rationale behind each item and why it supports your decision stated in item (e). Also, attempt to describe the relationship between NPV and IRR. (Hint. The key factor is the discount rate used.) In addition to the paper, a Micosoft® Excel® spreadsheet showing your projections and calculations must be shown and attached.Stakeholders
1.Final Project Milestone #5: Stakeholders
Read Stakeholder Management Capability and A Stakeholder Approach to Corporate Social Responsibility. In a post titled 5-2: Stakeholders, answer the following questions:
How does your selected company involve its stakeholders in decisions?
What has been your experience? What do stakeholders report?
How do the reports of the different stakeholder groups differ?
How does the company manage opposing stakeholder interests?
How do corporate values and vision affect its decisions?
Provide examples. Remember, you are to report on what the company says about itself, your experience, and the experience of its stakeholders. Cite at least two sources (maybe the articles listed above?).
2. Case Study #2: Partnership for Lebanon and Cisco Systems
The project manager for the Partnership for Lebanon (PFL) and Cisco Systems’ regional director of corporate affairs for the Middle East and Africa met three years after PFL was first initiated.
Their meeting revolved primarily around the challenge of sustainability and what useful suggestions they could put forward to their partners to ensure that the projects initiated through PFL would have a life of their own and not be dependent on the continuous substantive investments of the partners.
This case focuses on how companies can leverage their core competence to maximize value for both business and society and the various social and economic goals this can achieve.
In this case study analysis, you are to address the following, utilizing the headings below in the body of the paper. You must cite all facts from the case study itself. In addition to citing from the case study, you must also cite at least two other resources. Suggested assignment length (not including cover page and reference page): 6–8 pages.
Introduction ? Provide a synopsis of the company and the case.
CSR Lessons ? Analyze the case and discuss the key strategic lessons learned from the PFL concerning the implementation and running of development programs that could be adopted by any senior manager. Cisco, Corporate Sponsors, and PFL ?
Discuss the leadership position that Cisco assumed in the PFL. Analyze the engagement of the PFL corporate partners. How did they benefit from their engagement? What added value do partnerships bring to CSR initiatives, in particular to PFL and in general to any
The Challenge of Sustainability ? Make recommendations to help address the challenge of sustainability in development projects led by CSR initiatives.
Base your suggestions on PFL examples from the case.
Conclusion ? Summarize in 2–3 paragraphs the most important elements addressed in this analysis.
References ? Include a separate page of APA-formatted references. At the minimum, the case study should be included, as well as two outside references. There should be no items listed in the references that were not included in the body of the paper as in-text citations.
The second assignment as to be between 6-8 pages.
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