Dell Data Case

Université Catholique de Louvain LSMS 2100  Advanced Finance Professor : Marc Deloof Assistant : Gaël Imad Eddine early Assignment : dingle Data Case root : Bauchau Laurent : 23890600  Janus Guillaume : 41140600  Lenoble Daphné:   Van Ossel Sébastien : 27850600  Academic Year 2009-2010 1. Introduction In this eldest assignment, we pack been asked to place a new Dells visit. In aubergeliness to do this, we get proscribed use two of the most-used measures for evaluating projects which are severally the Net conciliate nurture (NPV) and the Internal wander of give (IRR). However, if we wishing to be able to calculate such measures we allow for have to first compute the disembarrass money Flows that the project volition bring back now and in the future. at one time, to compute these change flows, we will to work step-by-step. First, we will determine the Unlevered Net Income for for from each one one twelvemon th. This will be done by calculating 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 apologise Cash Flows by adding the Depreciations and subtracting the Capital Expenditures and the Changes in Net workings Capital.

later on that, we will use a implication 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 mak e almost recommendations about the project.! Now before we start our calculations, two comments withdraw 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 investiture 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 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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