BBA 321 American School of Business Week 5 Manor House Finance Case Study

User Generated

Qnavopa99

Business Finance

BBA 321

American School of Business

BBA

Description

Hello!

The assignment is done just please check if any corrections are needed and if yes, please change them, you have everything attached to follow.

Unformatted Attachment Preview

BBA321 Cases in finance Task brief & rubrics FINAL ASSIGNMENT (100% of the final grade) You must answer all the questions in the proposed business case. LAUNCH: WEEK 5 / DELIVERY: 20 SEPTEMBER, 2020, 23:59HRS ON MOODLE Submission file format: Excel document with all the answers, clearly identifying all four projects and showing the present values of the cash flows as well as explanations when needed. Clearly provide all the assumptions which you take to solve this case. For this Final Assignment (individual), the students must carry out the following work: Read the case “Ligthing the Way at the Manor House Hotel”, and calculate the present value among the four types of bulbs. Determine which bulb you would choose and why. The structure of the work will be built around the following elements: 1. Excel table showing the calculation of the present values of the four alternatives as well as the assumptions taken (20 pts each = total 80 points) 2. Summary of the present values and choice of the bulb (20 pts) Show all your calculation. Be precise and provide numbers to support your analysis. Create a specific tab in your Excel file with only the final answers (i.e. the four present values and the bulb chosen) Please see EUBS’s recommendations for avoiding plagiarism, located in the BBA Student Guidelines. Rubrics 9-10 8-8.9 7-7.9 6-6.9 3-5.9 1-2.9 0 Descriptor Student demonstrates excellent understanding of key concepts and uses vocabulary in an entirely appropriate manner. Student demonstrates good understanding of the task and mentions some relevant concepts and demonstrates use of the relevant vocabulary. Student understands the task and provides minimum theory and/or some use of vocabulary. Student understands the task and attempts to answer the question but does not mention key concepts or uses minimum amount of relevant vocabulary. The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student. The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts. The student leaves the question blank or cheats. Summary of Bulb Choices Options: Philips 60 Watt Equivalent Incandescent Philips 60 Watt Equivalent Twister CFL Philips 60 Watt Equivalent LED 19A Cree 60 Watt Equivalent LED Present Value: 75,197 16,289 19,116 16,367 Choice number 4 1 3 2 Finance Case Study Philips 60 Watt Equivalent Incandescent Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Year Electricity Cost Cost of new bulbs Replacement Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Present Value over 24 year period 5,256 267 0 5,361 272 1,863.03 5,468 277 1,900.29 5,577 283 1,938.30 5,689 288 1,977.06 5,803 294 2,016.60 5,919 300 2,056.94 6,037 306 2,098.07 6,158 312 2,140.04 6,281 318 2,182.84 6,407 325 2,226.49 6,535 331 2,271.02 6,665 338 2,316.44 6,799 345 2,362.77 6,935 352 2,410.03 7,073 359 2,458.23 7,215 366 2,507.39 7,359 373 2,557.54 7,506 381 2,608.69 7,656 388 2,660.87 7,810 396 2,714.08 7,966 404 2,768.36 8,125 412 2,823.73 8,288 420 2,880.21 nt Incandescent Philips 60 Watt Equi Total Annual CF Discounted CF iod 5,522 7,496 7,646 7,798 7,954 8,113 8,276 8,441 8,610 8,782 8,958 9,137 9,320 9,506 9,696 9,890 10,088 10,290 10,496 10,706 10,920 11,138 11,361 11,588 $75,197 5,020 6,195 5,744 5,326 4,939 4,580 4,247 3,938 3,652 3,386 3,140 2,911 2,700 2,503 2,321 2,152 1,996 1,851 1,716 1,591 1,476 1,368 1,269 1,176 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Electricity Cost Present Value over 24 year 1,139 1,161 1,185 1,208 1,233 1,257 1,282 1,308 1,334 1,361 1,388 1,416 1,444 1,473 1,503 1,533 1,563 1,594 1,626 1,659 1,692 1,726 1,760 1,796 Philips 60 Watt Equivalent Twister CFL Cost of new bulbs Replacement Cost Total Annual CF Discounted CF Every 12 years Present Value over 24 year period 2,906 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,685 2,316.44 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,044 1,161 1,185 1,208 1,233 1,257 1,282 1,308 1,334 1,361 1,388 1,416 7,445 1,473 1,503 1,533 1,563 1,594 1,626 1,659 1,692 1,726 1,760 1,796 $16,289 3,677 960 890 825 765 710 658 610 566 525 487 451 2,157 388 360 334 309 287 266 247 229 212 197 182 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Philips 60 Watt Equivalent LED 19A Period Year Electricity Cost 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Cost of Replacement Cost Total Annual CF new bulbs Every 24 years Present Value over 24 year period 1,095 8,431 0 1,117 0 0 1,139 0 0 1,162 0 0 1,185 0 0 1,209 0 0 1,233 0 0 1,258 0 0 1,283 0 0 1,309 0 0 1,335 0 0 1,361 0 0 1,389 0 0 1,416 0 0 1,445 0 0 1,474 0 0 1,503 0 0 1,533 0 0 1,564 0 0 1,595 0 0 1,627 0 0 1,660 0 0 1,693 0 0 1,727 0 0 9,525 1,117 1,139 1,162 1,185 1,209 1,233 1,258 1,283 1,309 1,335 1,361 1,389 1,416 1,445 1,474 1,503 1,533 1,564 1,595 1,627 1,660 1,693 1,727 19A Cree 60 Watt Equivalent LED Discounted CF $19,116 8,659 923 856 794 736 682 633 587 544 504 468 434 402 373 346 321 297 276 256 237 220 204 189 175 Period Year Electricity Cost 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Cost of new bulbs Present Value over 24 year period 832 8,431 849 0 866 0 883 0 901 0 919 0 937 0 956 0 975 0 994 0 1,014 0 1,035 0 1,055 0 1,076 0 1,098 0 1,120 0 1,142 0 1,165 0 1,189 0 1,212 0 1,237 0 1,261 0 1,286 0 1,312 0 Cree 60 Watt Equivalent LED Replacement Cost Total Annual CF Discounted CF Every 24 years ent Value over 24 year period 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9,263 849 866 883 901 919 937 956 975 994 1,014 1,035 1,055 1,076 1,098 1,120 1,142 1,165 1,189 1,212 1,237 1,261 1,286 1,312 $16,367 8,421 701 650 603 559 519 481 446 413 383 356 330 306 283 263 244 226 210 194 180 167 155 144 133 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Light Bulb Specifications Cost Per Bulb Rated Lifetime (hours) Annual Hours Initial Quantity of Bulbs needed Wattage Annual Cost of electricity Bulb Replacement Labor Cost Inflation Cost per Kwh (US cents) Philips 60 Watt Philips 60 Watt Equivalent Equivalent Incandescent Twister CFL $0.41 1,000 650,000 650 60.0 5,256 $2.81 $4.47 12,000 650,000 650 13.0 1,139 $2.81 2% ROR Energy Cost Calculation 13.476 Philips 60 Watt Equivalent LED 19A $12.97 24,000 650,000 650 12.5 1,095 $2.81 10% Cree 60 Watt Equivalent LED $12.97 24,000 650,000 650 9.5 832 $2.81 Assumptions Assumptions taken for solving this case Decrease in cost per LED bulb till 2015 Decrease in cost per LED bulb till 2020 Permanent one-time hike in electricity cost Annual increase in cost per incandescent bulb till 2020 Annual increase in replacement labor cost for incandescent bulbs Annual increase in electricity cost per KWH Annual increase in cost per CFL bulb till 2020 Page 11 25% 12.50% 20% 2% 2% 2% 2%
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hi your answers are all correct! i have already compared it with my own calculations.

Light Bulb Specifications
Cost Per Bulb
Rated Lifetime (hours)
Annual Hours
Initial Quantity of Bulbs needed
Wattage
Annual Cost of electricity
Bulb Replacement Labor Cost

Inflation
Cost per Kwh (US cents)

Philips 60 Watt Philips 60 Watt
Equivalent
Equivalent
Incandescent
Twister CFL
$0.41
1,000
650,000
650
60.0
5,256
$2.81

$4.47
12,000
650,000
650
13.0
1,139
$2.81

2%
ROR
Energy Cost Calculation
13.476

Philips 60 Watt
Equivalent LED
19A
$12.97
24,000
650,000
650
12.5
1,095
$2.81

10%

Cree 60 Watt
Equivalent
LED
$12.97
24,000
650,000
650
9.5
832
$2.81

Assumptions

Assumptions taken for solving this case
Decrease in cost per LED bulb till 2015
25%
Decrease in cost per LED bulb till 2020
12.50%
Permanent one-time hike in electricity cost
20%
Annual increase in cost per incandescent bulb
2%
Annual increase in replacement labor cost for incandescent bulbs
2%
Annual increase in electricity cost per KWH
2%
Annual increase in cost per CFL bulb
2%

Page 3

Finance Case Study
Philips 60 Watt Equivalent Incandescent
Pe...


Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags