Corporate Finance - Assignment 03 Example | Topics and Well Written Essays - 1500 words

Corporate Finance - 03 - Assignment Example The study will be conducted for five days from 23rd December 2014 to 27th December 2014. The equipment is needed in January 2015. The estimated transportation cost is AED 5 million. The company intends to spend the remaining AED 50 million towards the equipment purchase. The equipment is quoted to cost  £ 860,000 and â‚ ¬ 1,090,000 in pounds and Euros respectively. The study of the currency movement will aid the purchase at a lower price. Therefore, this assignment presents a five-day exchange rate in a table format showing the value of AED 50 million, for each day, in both the currencies (Pounds and Euros). For each of the five days, the cost of the purchase and the impact of the decision are presented. Last, a report that provides justifications that the decision made is favourable to the company also is provided. For the purpose of purchasing the equipment, the currency used for the transaction is the Euros. The table 3 below shows the cost of the equipment in AED based on the exchange rates observations presented in table 1 above. The equipment is quoted to cost â‚ ¬ 1,090,000. Therefore, after incorporating the exchange rates, the costs are below. From the table 3 above, the company will spend (1,090,000/0.223548) = AED 4,875,910 to purchase the equipment on the first day. â‚ ¬1,090,000 is the price quoted in Euros. In order to determine the cost of purchasing the equipment on day 1, the quote price is divided by the exchange rate (AED/ £) on that day. Recapture that AED 50 million was allocated for the expenditure. Therefore, by making the decision to purchase the equipment, the company will save (50,000,000 – 4,875,910) = AED 45,124,090 for the reason that the equipment will be worth less than the planned cost (XE Live Exchange Rates, 2014). The company’s capital expenditure will be significantly reduced, thereby increasing its financial flexibility (ability to pursue other profitable investments). The

SPECIAL REPORT Coursework Example | Topics and Well Written Essays - 1000 words

SPECIAL REPORT - Coursework Example The following are the traffic control strategies that have been put in place in Miami for the special event this year. The police should implement plans to educate road users in future on how to use roads during special events to avoid closure of roads, which is expensive and costly to both the police department in terms of labor needed to control traffic and to the residents in terms of time wasted in a crowded road. The police have issued guidelines and regulations that are going to ensure order during the major events at Miami Beach. According to Miami Beach Police Chief, the police analyzed the previous events and came up with a strategy to ensure a safe environment. The strategy will include directive orders to arrest people who are going to disrupt tranquility in Miami Beach. The police chief has said that the Police are hoping to avoid problems during this season by arresting people who are going to cause disturbance. According to Miami Beach’s police union the order, this weekend is for â€Å"patrol officers will need to meet an arrest quota of 2,000 arrests.†This number is two times the record of a thousand set in the previous years. In my opinion, this strategy is good except that the police should only make arrests to the offenders and not simply as a matter of meeting their target of 2,000 arrests. In my opinion, the police department has put in place extra measures which are different from the previous years and this is because of the increasing number of visitors that keep coming to Miami Beach each year. In previous years, the number of policy officers that were on the patrol was not as much as this year, and this is because of the increasing incidences of visitors who caused disturbance in the area. Similarly, the police have not been closing as many roads as it plans to close during this season. In my opinion, the police department should include the residents of Miami Beach to police the region during high season when