Purchase Solution

Economics for Decision-Making

Not what you're looking for?

Ask Custom Question

Task Name: Phase 3 Individual Project
Deliverable Length: 6-8 slides with notes
Details: The Board liked the analysis you did on valuation and agreed to proceed with the expansion plan. Your CFO, investment bankers, and consultants have all been working on the cost and benefits of various expansion options. They have agreed on an option that will see simultaneous expansion into 5 domestic markets (Chicago, Dallas, Miami, New York, and Charlotte), Germany, and Brazil. The CFO has developed cost and benefits of the scenario in a spreadsheet and has asked you to review it.

Look at the spreadsheet and use present value analysis to discount the cash flows. Determine if the project is a net positive or negative impact on the firm, NPV. Calculate the certainty equivalent cash flows and NPV. What kind of questions would you ask the CEO about economic assumptions? Articulate the economic and political risk with the strategy and list options to overcome. Should this approach to expansion be adopted? (Answer using CE cash flows and non-CE cash flows.

Please submit your assignment.

For the CEO's spread sheet please go here

https://campus.ctuonline.edu/courses/MGM626/Assignment_Assets/MGM626_p3ips.pdf

Purchase this Solution
Solution Summary

The response addresses the queries posted in 10 powerpoint slides with speakernotes.

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Ethics Case Study

    The culture affects the rationale for decision making.

  • Economics involves making the best decisions

    Using an example from your personal or professional life, what are the common elements of your decision making process and how do they relate to opportunity costs Need help in Economics involves making the best decisions.

  • The role of economics in everyday life.

    317051 What is economics? A) What is economics? b) What role does economics play in your personal decisions and or those of your organization? c) Give an example of the role of economics in decision making.

  • Managerial Economics: Introducing New and Innovative Vehicle

    Managerial Economics is a branch of economics, in which various economic theories, concepts, tools and logics are studied to use in the business decision making.

  • Economics-based decision-making in government

    8617 Economics-based decision-making in government Economics-based decision-making in government Economics-based decision-making in government has long been the basis for deciding to privatize or not.

  • Managerial Economics

    With the assistance of this, we will become able in understanding the application of the principles of economics in business decision making.// Managerial Economics Managerial Economics is a branch of economics.

  • Principles of Economics in Decision-Making

    100055 Principles of Economics in Decision-Making 1) The principles of economics influence your decision making, interaction with others, and the economy as a whole.

  • The Managerial Economics of Business Investment

    Thus, if managerial economics is the study of economic theories, logic and tools of economic analysis and their use in business decision making process, then managerial economics in business investment is its application.

  • Healthcare and the decision making process

    //Healthcare leaders are expected to make decisions that are influenced by many factors such as bioethics, economics, culture, and regulated standards of care. What decision making process would you recommend for healthcare leadership to follow?

  • How are the social science disciplines related?

    The decision-making process involves several steps.

View More Related Solutions