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1. How much importance should be given to the ener...




1. 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? 4. Forecast the project?s cash flows for the next 20 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 projects 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 for your quick response. However, the numbers seem a bit off. I have attached the assignment requirements for you review again. I can point out that my project requires the project's cash flows for the next 20 years, and I see you only provided 8. Also, to implement the project I have initial investment in year 0 as 3 million, and your answer shows 14,000,000? So Im a bit confused on that. Please advise. Thank you!!,To implement the project, the firm invested the following funds Year 0=3 million Year 1=5 million Year 2=3 million Year 3= production and selling of commercial appliances start. Your calculation shows 14,000,000 as initial investment in year 0 Thank you


Paper#4179 | Written in 18-Jul-2015

Price : $25