Dell Data Case

Université Catholique de Louvain LSMS 2100  Advanced Finance Professor : Marc Deloof Assistant : Gaël Imad Eddine early Assignment : dell Data Case sort go forth : Bauchau Laurent : 23890600  Janus Guillaume : 41140600  Lenoble Daphné:   Van Ossel Sébastien : 27850600  Academic Year 2009-2010 1. Introduction In this first- stratum assignment, we pack been asked to place a new Dells visit. In trampliness to do this, we get out use two of the most-used measures for evaluating projects which are severally the Net even out shelter (NPV) and the Internal wander of give (IRR). However, if we insufficiency to be able to calculate such measures we allow for have to first compute the large-minded money Flows that the project result hand now and in the future. at one time, to compute these bullion flows, we will to work step-by-step. First, we will determine the Unlevered Net Income for for apiece one twelvemonth. T his will be done by collusive 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 year, we will compute the drop out Cash Flows by adding the Depreciations and subtracting the Capital Expenditures and the Changes in Net functional Capital. later on that, we will use a tax deduction 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 near recommendations about the project. Now before we start our calculations, two comments gather up to be do: First, we will set up the timeline over 16 age (Year 0 to 15) as the main investing takes place in year 0, and the depreciation of the last enthronisation ends in year 15. Indeed, the last investment is made in year 5 and therefore its depreciation ends in y ear 15. Secondly, note that the satisfying ! analysis 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 full essay, order it on our website: OrderCustomPaper.com

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