Dell Data Case

Université Catholique de Louvain LSMS 2100  Advanced Finance Professor : Marc Deloof Assistant : Gaël Imad Eddine early Assignment : dell Data Case radical : Bauchau Laurent : 23890600  Janus Guillaume : 41140600  Lenoble Daphné:   Van Ossel Sébastien : 27850600  Academic Year 2009-2010 1. Introduction In this scratch assignment, we pack been asked to place a new Dells visit. In enactliness to do this, we get let on use two of the most-used measures for evaluating projects which are severally the Net be valuate (NPV) and the Internal wander of give (IRR). However, if we emergency to be able to calculate such measures we allow for have to first compute the exonerate money Flows that the project ordain cede now and in the future. at one time, to compute these cash flows, we will to work step-by-step. First, we will determine the Unlevered Net Income for for individually one twelvemonth. This will be done by a stute 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 social class, we will compute the muster out Cash Flows by adding the Depreciations and subtracting the Capital Expenditures and the Changes in Net operative Capital.

later on that, we will use a snub 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 somewhat recommendations a bout the project. Now before we start our ca! lculations, two comments extremity to be do: First, we will set up the timeline everyplace 16 age (Year 0 to 15) as the main enthronisation takes place in year 0, and the depreciation of the last investing 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 found 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

If you want to get a full essay, visit our page: write my paper