Examine the key reasons why a business may not want to hold too much or too little working capital.

 Working Capital Management

      Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation. 

  * From the scenario, analyze TFCb’s cash budget to determine key methods in which the budget may be optimized (e.g., by renegotiating terms and conditions on some of its payables, etc.). If you believe that there is room for improvement, recommend key strategies for TFC to use in order to optimize its cash budget. If you do not believe that this is the case, provide a rationale for your response

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Payment Time Case Study

Purpose of Assignment 

The purpose of the assignment is to develop  students’ abilities in using datasets to apply the concepts of sampling  distributions and confidence intervals to make management decisions. 

Assignment Steps 

Resources: Microsoft Excel®, The Payment Time Case Study, The Payment Time Case Data Set 

Review the Payment Time Case Study and Data Set. 

Develop a 700-word report  including the following calculations and using the information to  determine whether the new billing system has reduced the mean bill  payment time:

  • Assuming the standard deviation of the payment times for all  payments is 4.2 days, construct a 95% confidence interval estimate to  determine whether the new billing system was effective. State the  interpretation of 95% confidence interval and state whether or not the  billing system was effective.
  • Using the 95% confidence interval, can we be 95% confident that µ ≤ 19.5 days?
  • Using the 99% confidence interval, can we be 99% confident that µ ≤ 19.5 days?
  • If the population mean payment time is 19.5 days, what is the  probability of observing a sample mean payment time of 65 invoices less  than or equal to 18.1077 days? 

Format your assignment consistent with APA format. 

TitleABC/123 Version X1
Case Study – Payment Time Case StudyQNT/561 Version 91

University of Phoenix Material

Case Study – Payment Time Case Study

Major consulting firms such as Accenture, Ernst & Young Consulting, and Deloitte & Touche Consulting employ statistical analysis to assess the effectiveness of the systems they design for their customers. In this case, a consulting firm has developed an electronic billing system for a Stockton, CA, trucking company. The system sends invoices electronically to each customer’s computer and allows customers to easily check and correct errors. It is hoped the new billing system will substantially reduce the amount of time it takes customers to make payments. Typical payment times—measured from the date on an invoice to the date payment is received—using the trucking company’s old billing system had been 39 days or more. This exceeded the industry standard payment time of 30 days.

The new billing system does not automatically compute the payment time for each invoice because there is no continuing need for this information. The management consulting firm believes the new system will reduce the mean bill payment time by more than 50 percent. The mean payment time using the old billing system was approximately equal to, but no less than, 39 days. Therefore, if µ denotes the new mean payment time, the consulting firm believes that µ will be less than 19.5 days. Therefore, to assess the system’s effectiveness (whether µ < 19.5 days), the consulting firm selects a random sample of 65 invoices from the 7,823 invoices processed during the first three months of the new system’s operation. Whereas this is the first time the consulting company has installed an electronic billing system in a trucking company, the firm has installed electronic billing systems in other types of companies.

Analysis of results from these other companies show, although the population mean payment time varies from company to company, the population standard deviation of payment times is the same for different companies and equals 4.2 days. The payment times for the 65 sample invoices are manually determined and are given in the Excel® spreadsheet named “The Payment Time Case”. If this sample can be used to establish that new billing system substantially reduces payment times, the consulting firm plans to market the system to other trucking firms.

Copyright © XXXX by University of Phoenix. All rights reserved.

Copyright © 2017 by University of Phoenix. All rights reserved.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

FINC3155-Business Finance

FINC3155-Business Finance

Homework 9

1. Compute the NPV of the following project using discount rates of 10% and 20% .

Project C0 C1 C2 C3

A -80,000 40,000 40,000 40,000

@10%

40,000(.9091) = 36,364

40,000(.8264) = 33,056 = 99,472 -80,000 = NPV=19,472

40,000(.7513) = 30,052

@ 20%

40,000(.833) = 33,320

40,000(.6944) = 27,776 = 84,244- 80,000 = NPV = 4,244

40,000(.5787) = 23,148

2. The cost of capital for a firm is 15%. Calculate the NPV of the following project. Should the firm invest in this project?

YearCash flow
0-20,000
18,000
26,000
35,000
410,000

NPV@15

8,000(.8696) = 7999.1

6,000(.7561) = 4536.6

5,000(.6561) = 3287.5 =21,541- 20,000= 1,541.2

10,000(.5718) = 5718

3. You have the following information on four mutually exclusive projects with an equal life:

ProjectNPVIRR
A$35,00011%
B$20,00020%
C$15,30018%
D$40,00015%

Which project(s) should you choose?

The project that should be chosen is Project D because the NPV is the greatest compared to the

others.

4. A firm is evaluating two projects X and Z. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the next five years of $40,000. Assume the cost of capital of 10%. Which project(s) should the firm accept if

a) projects X and Z are independent?

If projects are independent, then Project Z would be preferred

b) projects X and Z are mutually exclusive?

If mutually exclusive, then Project Z would still be preferred because of the NPV is higher.

NPV @10%

25,000(3.791) = 94,775

-80,000 + 94,775 = 14,775

NPV @10%

40,000(3.791) = 151,640

-121,000 + 151,640 = 31,640

5. A firm is evaluating a proposal which has an initial investment of $60,000 and has cash flows of $16,000 per year for five years. Calculate the payback period of the project. If the firm’s maximum acceptable payback period is 3 years, should the firm accept the project?

3+ 100,000 – 16,000- 16,000/ 16,000 =16,000

= 3+12,000/16,000

=3+ .75

=3.75

The firm must reject the proposal because the maximum acceptable payback period is within 3 years.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Identify and discuss at least two of the case study’s findings and recommendations and evaluate its strengths and weaknesses.

Team building is challenging, especially when it comes to building different types of teams. However, the end result of a highly functional team will lead to increased team and organizational performance. Therefore, having a good understanding of the best practices and tools to develop, motivate, and build teams is essential to an organization’s overall success. For this assignment, you will learn more about best practices and how to best apply them. You are to review the following article analyzing a case study, evaluate the authors’ findings against the readings you have done in the course up to this point, and write a 3–5 page report following the directions below.

Pre-Reading:

Quader, M. S., & Quader, M. R. (2009). A critical analysis of high performing teams: A case study based on the British Telecommunication (BT) PLC. Journal of Services Research, 8(2), 175–216.
https://login.libproxy.edmc.edu/login?url=http://search.proquest.com.libproxy.edmc.edu
/docview/195553693?accountid=34899

Directions:
On the basis of your readings in the course and your independent research on the course topics, analyze the findings from the article.

In 3–5 pages:

  1. Identify and discuss at least two of the case study’s findings and recommendations and evaluate its strengths and weaknesses.
  2. Justify your viewpoints and analysis with scholarly resources.
  3. Determine how and/or why you might incorporate any of the article’s concepts and recommendations into your current work place and/or team.

Your final product will be in a Microsoft Word document and be approximately 3–5 pages in length, and utilize at least 2 scholarly sources in research (beyond the textbook). Your paper should be written in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"