Case Study Situation and Instruction Your company (selected company) anticipated expanding its business capital by three-per cent of capital expenditure next year. Using an annual report from the year 2019, the company choose to finance its business through debt and equity financing and to maintain its cash flows occur in perpetuity for the upcoming year. What will be the NPV? Breaking news received in the first quarter of 2020, where The World Health Organization (WHO) declared the coronavirus outbreak is a pandemic which spread to more than 100 countries around the world. Due to this unprecedented moves and living in the new norm has affected the entire global especially business activities plunge and possibly leads to inflation. Acting as the financial manager, you have to estimate the NPV for the base case and what-if analysis when inflation strokes and compare for both situations. Besides, helps the company in determining the degree of operating leverage (recommendation are needed). To avoid any shortage of production, the company also considering additional fund, at what quantity they should maintain? By solely using their financial annual report for the year 2019 and reliable sources to compile information such as inflation rate, you are required to suggest the company whether they should expand their business or vice versa? What happens to their NPV if inflation happen? Analytical skills required to provide authentic problem solving as an upmarket financial manager Case Study Situation and Instruction Your company (selected company) anticipated expanding its business capital by three-per cent of capital expenditure next year. Using an annual report from the year 2019, the company choose to finance its business through debt and equity financing and to maintain its cash flows occur in perpetuity for the upcoming year. What will be the NPV? Breaking news received in the first quarter of 2020, where The World Health Organization (WHO) declared the coronavirus outbreak is a pandemic which spread to more than 100 countries around the world. Due to this unprecedented moves and living in the new norm has affected the entire global especially business activities plunge and possibly leads to inflation. Acting as the financial manager, you have to estimate the NPV for the base case and what-if analysis when inflation strokes and compare for both situations. Besides, helps the company in determining the degree of operating leverage (recommendation are needed). To avoid any shortage of production, the company also considering additional fund, at what quantity they should maintain? By solely using their financial annual report for the year 2019 and reliable sources to compile information such as inflation rate, you are required to suggest the company whether they should expand their business or vice versa? What happens to their NPV if inflation happen? Analytical skills required to provide authentic problem solving as an upmarket financial manager
