Risk Methodologies

Apex is considering coffee packaging as an additional diversification to its product line. Here’s information regarding the coffee packaging project:

Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
Project and equipment life: 5 years
Sales: $27 million per year for five years
Assume gross margin of 50% (exclusive of depreciation)
Depreciation: Straight-line for tax purposes
Selling, general, and administrative expenses: 10% of sales
Tax rate: 35%

Assume a WACC of 10%.

Should the coffee packaging project be accepted? Why or why not? Compute the project’s IRR and NPV.

In addition, answer the following questions:

Do you believe that there was sufficient financial information to make a solid decision on what to do?

Was there further financial information that you required that was not provided to you?

What financial figure do you believe was the determinant to your decision and why?

How would you be able to apply this particular financial information to other situations?

Discuss risk methodologies used in capital budgeting.

Sample Solution

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Pepsi Co

Write your answer under each question. you could use the ppt Ch 1, 2, 3 concepts to help you with the case study. also if you need use other sources in the internet its fine as long as they are ACCESSIBLE. please make sure you fully answer the question, if the word count is not enough i will extend it 

Case Study Part II – General Appliances

In Part 2 of the case study, we will continue our work with General Appliances, with a shift in focus.

Synopsis
Mark Swann, the director of human resources at General Appliances, was impressed with the recruiting strategy you presented in Part 1 of the case study. While the company prepares to implement your plan, his focus has shifted to retaining General Appliances’ current employees in order to avoid a staffing shortage. He has compiled a list of additional questions for which hes seeking your advice as a consultant.

Requirements
Your report for the case study must include the following sections (note there is no overview required for Part 2 of the case study, as one was provided in Part 1):

*Discussion Questions Answer the discussion questions listed below
*Conclusion Briefly reflect your thoughts and opinions based on the case
*Reference Page – This must be included

In addition to the information in the case study itself, students should utilize a minimum of three sources, which can include the textbook and/or any recommended supplemental material, in order to complete this assignment.  These sources must be credible and scholarly (i.e., no unvetted blog posts or use of Wikipedia).  Industry organizations such as SHRM, as well as publications such as the Harvard Business Review and other peer-reviewed journals, are all good examples of credible sources. Remember to use parenthetical in-text citations in APA format throughout your paper to indicate the source of your information.

Discussion Questions

1. First, Swann wants to take a more analytical approach to tackle the potential staffing shortage. Since Chapter 3 of your textbook covered HR forecasting, you know there are three primary methodologies: (1) manager judgement, (2) Markov Analysis, and (3) replacement and succession planning. Which of these three approaches would you recommend to Swann? What are some possible limitations of your recommended methodology?
2. What should Swann do to ensure that employees are trained properly on the new equipment, and that they are emotionally and physically ready for the new technology? Provide specific examples.
3. Swann is aware that workplace injuries are more common in the manufacturing industry, and that older workers might experience more difficulty with such jobs due to the possibility of physical declines (Maertens et al., 2012). However, hes also aware that under the Americans with Disabilities Act, he might need to accommodate workers who can no longer do their jobs because of a disability. How should health and safety concerns be addressed in light of this?
4. General Appliances has fostered a culture that values employees, and Swann wants to build upon that. With this in mind, what tactics might he use to retain aging employees at the company?

Format
All papers must be completed in APA format.  This assignment should be between 2-3 pages in length (the cover page and reference page do not count towards this minimum), and must be typed using Times New Roman 12-point font, double-spaced, and with one-inch margins. Papers should also be spell-checked and grammar-checked.
An abstract is not required, and will not count towards the 2-3 page length requirement if included.  It is preferred that students not copy and paste the discussion questions into their papers; if the questions are included, they will not count towards the page requirement minimum.

Database concepts

Writing a research paper on the role of databases in real-life business systems.

    Paper topic description:  Databases have many applications in businesses. Discuss the role of databases in one of the following applications.

o    Business intelligence
o    Enterprise-wide applications (e.g., ERP, CRM, SCM, etc.)
o    E-business
o    Search engines (e.g., Googles Bigtable)
o    A specific industry (e.g., banking)
o    Another topic (approved by the instructor)

    The paper should be 2pages, double spaced.

    You must use at least three authoritative resources other than your textbook. These must be displayed in a bibliography and must be clearly cited in the body of the paper.