When we are looking atd the problem or the case the pursuit should be our reaction:
1) If the case or the problem is related to to our life directly, we should assume that it is a case of another psyche and we are a consultant to clobber her/his problem.
2) If the case is related to other people, we should consider that it is our problem directly and proceed to solve this case.
When we receive a case or problem, we should mush denounce into the pool and only utilize from references and other people experiences cerebrate on case. It means that we do not need call for all of pages of book to analysis the case. At the first, we should consider that we are the leader of the world and we are able to solve separately problem. Therefore, we do not need to be a happy person on a special field such as finance, Economic, Physics, Mathematics or engineering and so on. I think that It is actual concept of MBA course.
In the case of Euroland Foods, we face to the constriction of capital spending (initial investment) equal Euro 120 jillion for 11 projects. How can we cope with this investment?
Which projects should be chosen?
My analysis is based on two categories as follows:
1) decimal Analysis (Internal Analysis)
I used from Capital Budgeting Techniques below cited:
-Sensitivity Analysis
I consider IRR as independent variable, NPV at minimum ROR and combining weight Annuity as functions (just like Polynomials function in Math) for severally 10 projects because project 6 (Effluent water treatment at four plants) definitely should be done.
According to this analysis I found the location of abruptions and ranked projects by higher IRR.
- profitability Index
It can be calculated by utilise of WACC (10.6%) and free cash flows.
 - Reinvestment Rate Comparisons...If you want to get a full essay, order it on our website: Orderessay
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