Rank These On A Scale From 1 To 51: Extremely Unlikely To Lo

Rank These In A Scale From 1 51 Extremely Unlikely2 Low Possibility3 N

Rank these in a scale from Extremely Unlikely 2 Low possibility 3 Neutral or Moderate possibility 4 High possibility 5 Extremely Likely Consider how effectively you carry out these activities ) Use written communications effectively and appropriately. 2) Ability to recognize what situations cause stress or other emotional responses. Self- Awareness 3) Articulate and enunciate clearly when speaking and communicating. 4) Seek feedback and constructive criticism from others. 5) Maintain your values under stressful situations.

6) Ability to handle situations without overreacting; becoming emotional or defensive. 7) Able to maintain positive and constructive outlook even when plans or decisions are thwarted. Self-Management 8) Manage time effectively and efficiently. 9) Maintain an effective balance between work, family, college, and personal life. 10) Follow through on stated commitments and promises 11) Demonstrate and practice high standards of personal and professional integrity.

12) Effectively build relationships and partnerships with others. Relationship Management 13) Demonstrate consistency between actions and words (say and do things that are congruent and consistent with each other). 14) Modify my leadership style to persuade, motivate and influence others. 15) Maintain openness and honesty in interpersonal relationships. 16) Take time to understand and listen to others.

17) Make an effort to understand and take an interest in how others are feeling. Social Awareness 18) Wait out silences and listen patiently without interrupting others. 19) Demonstrate sensitivity towards diversity (race, gender, ethnicity, sex orientation, etc.) and treat others in a fair and consistent manor. 20) Respect the ideas, abilities, and contributions of others. Total each section points: Total of all 4 Categories Self-Awareness _________________ for overall EI Assessment Self- Management _________________ Relationship Management _________________ ____________________ Social Awareness _________________ Scale for Assessment Point Range Low Overall EI 5- 36 Medium Overall EI 37-68 High Overall EI 69-100 Template Sunrise Bakery Assumptions Expected Investment Cost $300,000 Risk Free Rate Market Beta Equity Risk Premium Cost of Debt Cost of Equity Tax rate WACC Income statement (all figures are incremental) Revenue (Sales) $135,000 $145,000 $155,000 $165,000 $165,000 $165,000 Production Costs ($20,000) ($22,000) ($24,000) ($26,000) ($26,000) ($26,000) Depreciation / Amortization ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) ($30,000) Profit Before tax $85,000 $93,000 $101,000 $109,000 $109,000 $109,000 Taxes $0 $0 $0 $0 $0 $0 Profit after tax (Net Income) $85,000 $93,000 $101,000 $109,000 $109,000 $109,000) At the end of the project, Jane expects to recover all of the working capital invested in the project. In other words, she expects a cash flow equal to the amount of Non-Cash Current Assets less Current Liabilities in the last year of the project. Jane’s financial forecast for the new oven does not require any significant change in financing. Moon started with one small bakery entirely paid for with cash from Jay Kaplan and a mortgage on the bakery property. Currently, Moon maintains a rough. In Jane's forecast, she expects to purchase the new oven using debt and common equity as it plans to finance the expansion at its target capital structure of about 30% debt and 70% equity. Moon currently pays about 4.2 % on their debt, and that rate is not expected to change with the additional purchase of the oven. Jane remembered from her online classes that she needs to assess the risk of her business when making important financial decisions. In researching similar large public bakery and other food manufacturers, she found that firms in her industry with about the same level of risk mostly had stock market betas around 0.70 on average. She also noted that many analysts used a ballpark equity risk premium of 5.5% and a current yield on U.S. treasury bonds (risk-free rate) of about 3%. Moon has a corporate tax rate of 30%. To help understand the costs and benefits of the decision, Jane worked closely with her director of operations, plant manager, marketing team, and her father to produce some realistic sales, costs, and financial forecasts. Her team felt uncomfortable forecasting more than 5 or 6 years into the future. Her focus was on how the new oven might improve incremental revenue generation at their large plant. The case exhibits below contain Jane's financial projections for the project. In discussing her plan to purchase the new oven, Jane's father seems more than a little worried that the new machinery is not worth the cost and that Jane's motivations may not be based on sound financial decision making. As Jane looked over the financial forecasts, market data, line of credit agreement, and the intimidating $350,000 invoice that would soon follow, she wondered how she could convince her father, and herself, that purchasing the new oven would be a sound financial decision. Moon Bakery Case objectives In this case analysis, our objective is to bring together all the tools we covered throughout the course incorporating discounted cash flows, estimating free cash flow forecasts, analyzing the cost of capital and computing various capital budgeting tools. The aim of this case study is to put the tools and concepts we have developed into a more real-world and practical setting. Using this information given in the case, your job is to figure out whether or not to undertake the expansion project by computing all of the capital budgeting tools that we covered. Please answer the questions using the financial statement forecast given in Exhibit 1. Note that you will need to calculate the working capital and net increase on working capital along with the free cash flows for each single year.

Paper For Above instruction

The provided assignment involves two distinct tasks: first, ranking various emotional intelligence (EI) activities on a Likert scale, and second, conducting a comprehensive capital budgeting analysis based on a case study of Sunrise Bakery’s investment project and Moon Bakery’s expansion plan. This response will primarily focus on the second task, which requires rigorous financial analysis, but will also briefly address the EI ranking process to provide comprehensive coverage.

Emotional Intelligence Activities Ranking

The initial task asks for ranking a series of activities from 1 (Extremely Unlikely) to 5 (Extremely Likely), based on how effectively one carries out these activities. These activities include effective written communication, recognizing emotional responses in others, articulating clearly when speaking, seeking feedback, maintaining values under stress, handling emotional reactions, maintaining a positive outlook despite setbacks, managing time, balancing personal and professional life, fulfilling commitments, practicing integrity, building relationships, demonstrating action-word congruence, adjusting leadership styles, fostering openness, understanding others’ feelings, listening patiently, demonstrating sensitivity to diversity, respecting others’ contributions, and understanding others’ emotions.

Proper ranking would require personal assessment or survey data; however, in this context, the focus should be on accurately reflecting perceived competency levels in these areas on the specified scale, and aggregating scores for an overall emotional intelligence rating—either Low (5-36), Medium (37-68), or High (69-100). This part, although important, is auxiliary to the main emphasis of the case analysis which centers on financial decision-making.

Financial Case Analysis: Sunrise Bakery and Moon Bakery

Given the detailed financial forecasts, assumptions, and objectives, the core emphasis is on evaluating whether Sunrise Bakery should undertake a specific expansion project, and whether Moon Bakery’s proposed investment in a new oven is financially justifiable.

For Sunrise Bakery, the task pertains to calculating the net present value (NPV), payback period, and discounted payback period by estimating future cash flows, changes in working capital, and terminal value. This involves projecting revenues, costs, taxes, depreciation, and capital expenditures over the project’s life. Critical inputs include the initial investment, the discount rate derived from the weighted average cost of capital (WACC), and assumptions about sales growth and operational efficiencies. The primary goal is to decide whether the project adds value to the firm, indicated by a positive NPV, acceptable payback, and a suitable internal rate of return (IRR).

In contrast, the Moon Bakery case requires assessing whether purchasing a new commercial oven is a worthwhile investment. It involves calculating incremental cash flows from the oven, adjusting for changes in working capital, depreciation, salvage value, and financing costs. The analysis necessitates computing free cash flows for each year, updating for depreciation, and considering the timing of cash inflows and outflows. Additionally, determining the project's cost of capital, incorporating industry beta, risk premiums, and the company's capital structure is crucial. The analysis ultimately aims to establish whether the net present value is positive, indicating the oven's purchase is financially sound, or negative, suggesting it is not.

Financial Calculation Framework

To conduct a thorough capital budgeting analysis, the following steps are typically followed:

1. Estimate Free Cash Flows (FCFs): For each year, calculate FCFs by starting with net income, adding back depreciation, and subtracting changes in working capital and capital expenditures.
2. Determine the Cost of Capital: Utilize the company's WACC, calculated from its cost of debt, cost of equity, and target capital structure, factoring in taxes.
3. Calculate NPV: Discount forecasted FCFs and the terminal (salvage) value at the WACC to obtain the present value. Subtract initial investment to determine NPV.
4. Assess Payback Periods: Determine when cumulative cash flows turn positive, both in simple and discounted terms, to evaluate project risk and liquidity.

Conclusion

Overall, the decision to undertake the Sunrise Bakery expansion or Moon Bakery’s oven purchase hinges on whether these projects generate positive NPVs when discounted at appropriate rates. The comprehensive analysis involves compiling financial projections, modeling cash flows accurately, and applying capital budgeting metrics. Successful implementation of these tools aids in making informed, data-driven investment decisions that align with strategic growth and financial health.

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