TO: Dr. Jim Turner FROM: Tyler Mead DATE: October 20, 2015 SUBJECT: New England Seafood Company Risk Analysis Overview: Accompanying this memo is a risk analysis I have conducted for New England Seafood Company. The risk analysis I have conducted will show which weighted average cost of capital would be best to use in evaluating the project along with how New England Seafood Company could utilize the land if the project is accepted. A 10% cost of capital will result in a positive net present value but the coefficient of variation will be much higher than New England’s average coefficient of variation. A lower or higher cost of capital could under or over value the project and risks involved. I would consider this project as high risk and suggest that New England Seafood Company not get into the catfish market. Problem: New England Seafood Company has focused exclusively on …show more content…
This land was purchased by the Gulf Shrimp Processing Division. If this current site is used for the catfish project, then Gulf Shrimp would need to find a different site. The best option would be for the Gulf Shrimp Processing Division to take advantage of buying an option for $100,000 to buy the site in five years for $1,300,000 compared to having no option and the price being $1,500,000. Table 1 shows the present value of these options. By purchasing the land with the $100,000 option, the present value is $907,198 with a 10% interest rate, discounted five years. This can be compared to having no option, still with a 10% interest rate, discounted at five years for a present value of $931,382. Therefore, it would be best to use the current land for the catfish project and purchase the $100,000 option to buy the new land for the Gulf Shrimp Processing Division because the present value of purchasing the land with the option is less than with no option at
The prevailing rate is only expected to increase, so with each additional year more money could be made from these sales. Even if the prevailing rate remains unchanged within five years, Medical Associates could make $1,365,255 from holding onto the 25 acres and then the separate 200 acres. The thing about waiting for five years is that Medical Associates will have to pay taxes on 200 acres of undeveloped land that would be a total of $121,550.63. Recommendation Holding onto the land for five years then selling it will generate $200,000 less compared to selling the land to the real estate investor for $1,500,00 as soon as it is acquired. This $1,500,000 can help pay for any debts Medical Associates has or possibly start planning for upgrading their current facilities.
The present-day business environment is characterized by increasing competitiveness in different industries. The owner Cy is aware of the increasing competition. The company has leased new production plants in seven southern states and one in Arkansas. This investment has put extra pressure on the company to generate revenue and stay in the competition of the market. Economic factors play a crucial role in any investment decisions that are made for taking a gain and better return to the investor.
They can either sign off the land and receive a monetary reward or not sign the contract and receive no money and have the land taken away regardless. There are two forces in this movie. One is an environmentalist, Dustin Noble, who tries to convince the farmers not to sign it due to the consequences and harm to the land. The environmentalist demonstrated what could happen if the chemicals leak out onto the land. The other forces are Steve and Sue.
Introduction In 1867, the Federal Department of Fisheries and Oceans (DFO) was created to regulate and control lobster fishing by issuing licenses, creating fishing seasons, documenting quota, regulating how many people could fish lobster, and how many fish could be brought ashore (Campbell, 2017). A hundred and fifty years later, DFO is still in the position to manage the Prince Edward Island lobster fishing industry. This is not the beginning of the story and this paper will discuss the people who fished off PEI before DFO was created; scientific information needed to know before fishers can catch lobster; the evolutionary technological changes in the lobster fishing industry. The purpose of this paper is to share more information about
Lastly, values analysis also applies because some homeowners may be hesitant to make the fifty yard cut because they have pleasure from seeing their yard all full of beautiful vegetables, shrubs, and flowers which adds value to their property. For some property values and personal preference may be more important than saving their home from a potential
Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle.
People don 't understand that this doesn 't just affect whales, it also effect people to because the belugas play a very important role in our ecosystem. If we don 't stop killing or hurting them right now later down the road we will pay for it. Later on in life if you start to see overwhelming amount of bad fish for an ecosystem and they are destroying it because there are no predators to keep the fish population down. Beluga whale help keep the ocean 's ecosystem healthy by eating fish and reducing the amount of fish that are bad for an environment. Belugas also are good for the deep sea because when anything dies and falls to the abyss from the topside they go through different layers of the ocean.
At a cost of $774 million, Alternative 16 accomplishes everything Alternative 10 does while creating more freshwater marshes and increasing the extent of restoration (“Los Angeles River”). The freshwater marshes are conducive for vegetation growth that is crucial to fish and their breeding habits. An increase in restoration efforts would allow the Los Angeles river to have an increase in access to floodplains, benefiting the hydrological cycle. The final plan proposal is Alternative 20 and has the highest estimated cost to implement. With a cost of $1.04 billion, Alternative 20 includes everything in Alternative 16 while widening the riverbed of the River and
Ryan Hogan OT-525 9-21-15 While taking the health risk assessment I knew right from the start that some of the information would be off. The assessment asked about things such as blood pressure and cholesterol, and I do not know these measures right of the top of my head. While looking at the results, it stated that I am at risk of dying within the next 10 years. When comparing my risk percentages to the average 27 year old male, I did very well and was average compared to the others. However one factor that I scored above average on was the chance of a heart attack.
The seafood market is probably worth over $100 million (including imported seafood), there is a $10-15 million charter boat industry, probably an equivalently valued tournament fishery, and there is a recreational and subsistence marine fishery with direct expenditures of $24 million. The estimate of the Hawaii seafood market supply in 1990, is 20 million pounds ($50 million) from commercial fishing, 9 million pounds from recreational fishing, 15 million pounds ($30 million) from foreign imports, 24 million pounds ($45 million) from the mainland U.S., and 3.5 million pounds ($10 million) exported. There are many elements to these recent changes in Hawaii's seafood industry. Perhaps the first harbinger of change was the arrival of albacore trollers from the west coast en route to newly discovered fishing grounds north of Midway Islands late in the 1970's. This caused a new perspective on the nature of Hawaii's role in the Pacific wide fishery and led to some substantial changes on the Honolulu waterfront.
1. If overfishing continues hundreds of thousands of fish farmers and medium scale fisheries, often very poor, that depend on aquaculture and fishing, will be out of work. According to the Food and Agriculture
We worked out and the net present values of each option and thereafter picked the option that has lower present value of cash outflows. Our NPV calculations for both options were backed with sensitivity scenario analysis of both the buy and leas options. Sensitivity Scenario Analysis Sensitivity analysis scenario is used to show how changes in one or more variables below and above the used variables would affect the intended results. I our sensitivity analysis scenario for Dragon Air lease vs buy decision we varied the cost of capital between 1% and 5% as the main driver in the case. The tables below show the results.
Company, Product Category and Competition: The product I am going to analyze for this forum is Live Crawfish. When I was young, my family had a small crawfish pond that was harvested with a push boat. Though I have been out of the crawfish business for several years, it is always been an interest of mine. A couple of my close friends are in the crawfish business and I live in a small community surrounded by farmers, whom I am always questioning about the market.
Cancer risks will be considered “essentially negligible” where the estimated ILCR is 1-in-100,000 (≤ 1 x 10-5) (Health Canada 2004). If the ILCR is greater than 1 x 10-5, the risk assessment should either be refined and/or risk management measures should be taken. In this study, ILCR is greater than 1 x 10-5. ILCR values in different tissues such as mussels and liver 3 species of coral island of Persian Gulf were in the range of 0.032677 - 0.044428. Thus documenting high potential carcinogenic risk for fish consumption at Kharg island.
Government Regulations on Food Food contamination, the presence of harmful chemicals and microorganisms in food, continues to become a pressing problem in the United States. According to Baher Kamal, “contaminated food affects one in ten people around the world- or around 700 million people as a result” (1). Although, the number of people being affected by food contamination is rising, government regulations are loosely enforced. Government agencies such as the Food Safety and Inspection Service, the U.S. Food and Drug Administration, and Centers for Disease Control and Prevention attribute most of the blame to lack of funding. These agencies are not enforcing their regulations, and because of this, the recall process of contaminated food continues to be voluntary.