Dell Data Case

Université Catholique de Louvain LSMS 2100  Advanced Finance Professor : Marc Deloof assist : Gaël Imad Eddine proto(prenominal) Assignment : dingle information Case Group : Bauchau Laurent : 23890600  Janus Guillaume : 41140600  Lenoble Daphné:   Van Ossel Sébastien : 27850600  Academic Year 2009-2010 1. Introduction In this foremost assignment, we pack been asked to fanny a new Dells visit. In rescript to do this, we get stunned use two of the most-used measures for evaluating projects which argon severally the Net pass mensurate (NPV) and the Internal tell on of give (IRR). However, if we desire to be able to calculate such measures we allow for have to first count the barren notes Flows that the project testament retort now and in the future. at one time, to compute these cash flows, we bequeath to work step-by-step. First, we volition determine the Unlevered Net Income for for distributively one twelvemonth. This will be done by figure the receipts Profit, subtracting the Depreciations and then winning into account the Income Tax. Then, once we will have the Unlevered Net Income for from each one category, we will compute the drop Cash Flows by adding the Depreciations and subtracting the heavy(p) Expenditures and the Changes in Net working Capital.

later on that, we will use a send away factor on these forgo Cash Flows in influence to find their Present Values. victimization these Present Values of our Free Cash Flows, we will compute the Net Present Value and the Internal Rate of crop of the project. Finally, we will make some(prenominal) recommendations about the project. Now to begin with we start our calculations, two comments lead to be do: First, we will set up the timeline everyplace 16 age (Year 0 to 15) as the main enthronization takes place in family 0, and the depreciation of the stretch forth enthronisation ends in year 15. Indeed, the last investment is made in year 5 and thus its depreciation ends in year 15. Secondly, note that the satisfying abbreviation we do here is establish on the info from fiscal year 2008 (ending in January 2009), downloaded from MarketWatch....If you want to get a overflowing essay, order it on our website: Orderessay

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