Strategic Financial Management 2 Coursework Example | Topics and Well Written Essays - 3000 words - 1

Strategic Financial Management 2 - Coursework Example Question one. Calculate the adjusted present value (APV) for the project, correcting any errors made in the net present value estimate above, and conclude whether the project should be accepted or not. Show all relevant calculations. (25 marks) Before any attempt should be made to prepare the adjusted present value of the proposed project, Rattle Co must carefully study how the given projected cash flow statement for four years was made, to know where some should remain because they are already correct or whether they need further adjustments. When the needed adjustments are known, the framework is established to do the same with each item in the prepared cash flows, asking whether it should be adjusted or not. Starting with the revenue, it appears that one critical issue would be whether it should be presented with inflation or net of inflation. The answer would depend on what discount rate is used. If the discount rate is with inflation, then the revenue must include the inflation. In the case facts, the inflation was given however, if the discount rate is used with the real rate, i.e. not the nominal one, then presenting the net of inflation of the inflation rate is the proper thing. The 8% inflation rate increase for revenues and 4% inflation rate increase for cost of sales become irrelevant. Working capital requirements appear not to be reflected in the given cash flow. These need to be determined, as they are a factor in any decision. A business cannot operate without working capital. Since the amount of working capital at the beginning of each year is 20% of the forecasted revenue per year, just multiply each given sales figure per year, then it is possible to generate a working capital requirement per year. As computed in the revised and adjusted projected cash flow in Appendix A, the working capital amounts come to  £4,606,000,  £7,320,000,  £9,814,000 and  £5,428,000 for

Unresolved conflicts in the region as a key obstacle in the Essay

Unresolved conflicts in the region as a key obstacle in the development of (the Armenian-Azerbaijani Nagorno-Karabakh conflict in the context) - Essay Example It is co-chaired by the United States, France and Russia. Negotiations hit a deadlock in 2011 leading to spread of the geographical scope to other regions far way from Nagorno-Karabakh. It has been identified that this conflict is the key barrier to peace, stability and development in the South Caucasus (Notholt, 2008, p68). A review of the reasons as to why both the external actors and the conflicting parties have an interest in maintaining the status quo reveals the reason why the peace negotiation process has currently hit a deadlock. For example, both the government of Armenian and Azerbaijani have not shown any genuine interest in achieving the negotiated outcomes, which are proposed by OSCE (Notholt, 2008, p34). The Nagorno-Karabakh government was officially excluded from participating in this peace process, and the Armenia government is currently representing them. NK officials are currently becoming impatient with isolation from the direct participation and the fact that the negotiation process is currently not underway (Croissant, 1998, p42). A number of factors do not favor the negotiation process in this region. For instance, the geographical context does not support this negotiation progress. This is because the key powerbrokers, which include The United States, Russia and Turkey, seem to be comfortable with the current status quo with respect to their strategic interests (Croissant, 1998, p34). In addition, they still promote arms race and power imbalance through security alliances and arms-trade with the conflicting parties. This is a clear evident that the external actors are not interested in finding a permanent solution to this conflict that will lead to long-lasting peace and development. Additionally, other nations like Iran and Georgia are interested in mediating this negotiation process, but members of OSCE have denied them the chance to participate. The United Nations Security Council has also been denied the