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Not standard Tesca Case Questions. (3 are the same...

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Not standard Tesca Case Questions. (3 are the same, 1 has '20 years' instead of '8 years', and 4 are additional opinionated questions. Standard Questions: 1) What is the project?s cost of equity? What is the appropriate discount factor to use for evaluating the refrigerator project? 2) Forecast the project?s cash flows for the next *****20***** years. What assumptions did you use? (Note: I changed this to read 20 years.) Use straight line depreciation for this case. 3) Use the appropriate capital budgeting techniques to evaluate the project. 4) Use the average demand scenario to evaluate the sensitivity of the project?s NPV with respect to sale price of the refrigerator and the cost of the compressor. *****Note: Question 2 was changed to read "...20 years...". Additional questions: 1A) How much importance should be given to the energy cost situation? 2A) Would you recommend that Tesca Works accept or reject the project? What is the basis for your recommendation? 3A) Based on the scenario and sensitivity analysis you performed above, comment on the overall riskiness of the project. 4A) Which of the two compressors should be used in the refrigerator if you decide to go ahead with the project and why?,OK, Thank you. I will patient. :) Just to make sure, this attached information is EXACTLY what I need. I wasn't as clear in my initial email. Please goo off of this attachment for more specific requirements. Thank you.,Yes!!! Thank you. Please make sure you recieved the 2nd attachment... meaning the 7 page pdf with these 8 questions and some numerical data that follows. How much importance should be given to the energy cost situation? 2) What is the project?s cost of equity? What is the appropriate discount factor to use for evaluating the refrigerator project? 3) Which of the two compressors should be used in the refrigerator if you decide to go ahead with the project and why? 5 4) Forecast the project?s cash flows for the next twenty years. What assumptions did you use? 5) Use the appropriate capital budgeting techniques to evaluate the project. 6) Use the average demand scenario to evaluate the sensitivity of the project?s NPV with respect to sale price of the refrigerator and the cost of the compressor. 7) Based on the scenario and sensitivity analysis you performed above, comment on the overall riskiness of the project. 8) Would you recommend that Tesca Works accept or reject the project? What is the basis for your recommendation? Thank you soo much! (I also attached the same requirement to this email.)

 

Paper#3807 | Written in 18-Jul-2015

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