Pinder LLC is planning on a leveraged buyout of Value Co. Pinder LLC believes that it could improve its investment returns by reducing capital expenditures to 2% of sales for the first four years then raising it to 7% of sales in the fifth year and onwards. Pinder believes that this reduction in capital expenditures will only have a small impact on the performance of Value Co and that the long-term consequences will only be felt much later when Pinder LLC has long exited from the investment. What is the percentage point improvement for Pinder LLC's IRR under this strategy? Assume that all other conditions of the buyout are identical to the assumptions in the lecture. (For this question, the answer does not need to be handwritten. You only need to copy-paste the relevant sensitivity table containing the entry and exit multiples at 8.0x EBITDA after making the necessary changes to the template to show your work. Make sure the assumptions in the lecture are correctly inputted in the template -the IRR prior to making changes should be 19.7%.

The senior partner in a local accountancy firm is concerned about the
error rate amongst assessments issued by her office. A careful check
over the past few years enables her to estimate that the error rate has
the following probability distribution:
Error rate Probability
0.05 0.25
0.10 0.35
0.15 0.25
0.20 0.15
Each error costs £40 because of the labor time involved in reassessment. Her firm is just entering the assessment 'season', and is
expected to perform 500 assessments over the next few months.
One way to reduce the error rate is to send all staff to a one-day
training course at the local university- 'Precision in Assessment'. The
university claims this would ensure an error rate of 0.05, but she
considers that an error rate of 0.10 would be equally likely.
The course fee is £700 for all her staff, whilst lost profit from one
day's work missed would be £500. Advise her on whether to send staff
on the course or not.
A careful check of that day's output shows that in ten assessments,
two contained errors. Use this information to update the error rate
probability distribution.