Accounts and Finance: Difference between revisions
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[Amount required / Net Cash Flow in year] x 12 = Payback Period | [Amount required / Net Cash Flow in year] x 12 = Payback Period | ||
=== In the case UWP === | |||
== In the case UWP == | |||
There is not enough information to make an Average Rate of Return (ARR) or a Payback Period as the case does not explain how much profit would the hospital or the University generate. Maybe a reason why they do not tell us that information is because the intention of those projects are not financial but to be healthy to the community. Also we do not have a net cash flow forecast for each project so the Payback Period is not available for students. In case the IBO gives a cash flow, we just need to analyse the amount of profits the projects are going to be generating to put what we need in a formula. | There is not enough information to make an Average Rate of Return (ARR) or a Payback Period as the case does not explain how much profit would the hospital or the University generate. Maybe a reason why they do not tell us that information is because the intention of those projects are not financial but to be healthy to the community. Also we do not have a net cash flow forecast for each project so the Payback Period is not available for students. In case the IBO gives a cash flow, we just need to analyse the amount of profits the projects are going to be generating to put what we need in a formula. | ||
=== Kos === | === Kos === | ||
Revision as of 04:26, 17 April 2012
Quantitative Investment Appraisal
Average rate of return
Average rate of return is a percentage that shows the amount of profit someone gets back from an investment. This takes into account the profit and not the time.
[Net return (profit) per annum / Capital Outlay (cost)] x 100 = ARR
Payback Period
The Payback Period is the amount of time a firm would take to recover the investment made. This takes into account the time and not the profit.
[Amount required / Net Cash Flow in year] x 12 = Payback Period
In the case UWP
There is not enough information to make an Average Rate of Return (ARR) or a Payback Period as the case does not explain how much profit would the hospital or the University generate. Maybe a reason why they do not tell us that information is because the intention of those projects are not financial but to be healthy to the community. Also we do not have a net cash flow forecast for each project so the Payback Period is not available for students. In case the IBO gives a cash flow, we just need to analyse the amount of profits the projects are going to be generating to put what we need in a formula.
Kos
Strenghts
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Weaknesses
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Opportunities
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Threats
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PESTLE Analysis
UWP
| Political |
|
| Economic |
|
| Social |
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| Technological |
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| Legal Factors |
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| Environmental Factors |
|
Kos
| Political |
|
| Economic |
|
| Social |
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| Technological |
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| Legal Factors |
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| Environmental Factors |
|
Ansoff Matrix
UWP
Product Development
UWP would be Product development because they have already been for a while in Loyka therefore they are in the same “market” and with the construction of either the hospital or the university it would be the “product” (in this case a service)
Kos
Market penetration for Kos
Strategic, tactic and operational objectives (apply to UWP)
Strategic and operational objectives both help to Loyka in decision-making in order to know how to achieve the aims of either the university or the hospital. It is as important for Loyka to set operational objectives as strategic objectives. As seen in this case, these type of objectives would allow General Pierce to fulfill the two objectives given to her: improving the image of the “Olive Hats” (strategic) and the remotivation of their troops (operational). If a hospital were to be constructed, prenatal care might have to be taken into account for an operational objective. On the other hand, for the construction of a university, there might be the need to rebuild the social infrastructure, which could be a strategic objective. As seen in this case, the setting of both types of objectives are important to Loyka, since the company could see which objectives are more likely to be achieved in order to know which construction is the most suitable.
Tactics: Are short-term objectives which help achieve the strategic objectives. In this case, a tactic could be the finding of a source in which something could be used in order to improve the image of the “Olive Hats”.
Glossary
Na (Later)
Categories
- Business Organization and Environment
- Human Resources
- Accounts and Finance
- Marketing
- Operations Management
References
If Any...