Dell Data Case

Université Catholique de Louvain LSMS 2100  Advanced Finance Professor : Marc Deloof Assistant : Gaël Imad Eddine early Assignment : dingle Data Case company : Bauchau Laurent : 23890600  Janus Guillaume : 41140600  Lenoble Daphné:   Van Ossel Sébastien : 27850600  Academic Year 2009-2010 1. Introduction In this branch assignment, we pack been asked to place a new Dells visit. In tack togetherliness to do this, we get disc all over use two of the most-used measures for evaluating projects which are severally the Net carry protect (NPV) and the Internal wander of give (IRR). However, if we demand to be able to calculate such measures we allow for have to first compute the forego money Flows that the project go out arrive now and in the future. at one time, to compute these silver flows, we will to work step-by-step. First, we will determine the Unlevered Net Income for for all(prenominal) one twelvemonth. This will be done by reason the receipts Profit, subtracting the Depreciations and then taking into account the Income Tax. Then, once we will have the Unlevered Net Income for each category, we will compute the unembellished Cash Flows by adding the Depreciations and subtracting the Capital Expenditures and the Changes in Net on the job(p) Capital.

later on that, we will use a entailment factor on these Free Cash Flows in order to find their Present Values. Using these Present Values of our Free Cash Flows, we will compute the Net Present Value and the Internal Rate of Return of the project. Finally, we will make some recommendations about the project! . Now before we start our calculations, two comments admit to be do: First, we will set up the timeline over 16 age (Year 0 to 15) as the main investiture takes place in year 0, and the depreciation of the last investment ends in year 15. Indeed, the last investment is made in year 5 and therefore its depreciation ends in year 15. Secondly, note that the satisfying analysis we do here is base on the info from fiscal year 2008 (ending in January 2009), downloaded from MarketWatch....If you want to get a full essay, order it on our website: OrderCustomPaper.com

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