New York Times potential acquisition target for Google.
Not what you're looking for?
The New York Times potential acquisition target for Google, new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded?
Issues might be:
? Risk
? Cost
? Politics (getting it through committees)
? Public Relations
? etc.
Identify a potential capital project for your company describe such a project and write a short summary of the problems you see in getting the funding to see it through.
The paper should have references to the background materials or other sources you found for this paper. It must discuss both the estimates of the initial investments and the annual incremental after-tax cash flow that is expected to emanate from the investment.
Must include references and citations
Purchase this Solution
Solution Summary
This solution is comprised of detailed explanation to the following question:
The New York Times potential acquisition target for Google, new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded?
Issues might be:
? Risk
? Cost
? Politics (getting it through committees)
? Public Relations
? etc.
Identify a potential capital project for your company describe such a project and write a short summary of the problems you see in getting the funding to see it through.
The paper should have references to the background materials or other sources you found for this paper. It must discuss both the estimates of the initial investments and the annual incremental after-tax cash flow that is expected to emanate from the investment.
Must include references and citations
Solution Preview
Please open attachment.
As far as cost when estimating the cash flow that might be emanating from the initial investment and problems in getting it funded is the accurate calculation of the incremental cash flows. Incremental cash flows are only cash flows that are incremental and that result from a project. However, few subjects are worth considering to avoid pitfalls in estimating the costs are the consideration of sunk costs, opportunity costs, side effects, net working capital, financial costs, and other issues.
Sunk cost is a cost we have already paid or have already incurred the liability to pay (Ross, Westerfield, & Jordan, 2008). Such a cost cannot be changed by the decision today to accept or reject a project. That is, the firm will have to pay this cost no matter what. In other words, sunk cost is clearly not relevant to the decision at hand. Therefore, sunk costs must be excluded in an analysis of estimating the cash flow and initial investment.
Opportunity cost is slightly different; it requires us to give up a benefit (Ross, Westerfield, & Jordan, 2008). A common situation arises in which a firm already owns some of the assets a proposed project will be using. For example, Google might be thinking of converting an old printing machine they bought years ago for $100,000 into upmarket printing of the New York Times. If Google undertakes this project, there will be no direct cash outflow associated with buying the old machine because they already own it. However, the machine should not be treated as free when evaluating the project. This is because the machine is a valuable resource used by the project. If Google didn't use it here, they could do something else with it, like selling it. Therefore, using the machine for printing the New York Times thus has an opportunity cost. That is, Google gives up the valuable opportunity to do something else with the printing machine. Now, the fact that Google paid $100,000 some years ago is irrelevant to estimating the cash flow and ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.