Survival Of Fendas Plc In The Economic Downturn

To: Shareholders of Fendas Plc
From: Financial Consultant
Project: Survival of Fendas Plc in the economic cumulationturn and a discussion of FTES companies share price.
Fendas Plc is a union which is specialized in designing and producing a unique electronic dodge known as TK7788 which is mostly used in syndicate appliances. During the past six course of instructions, the caller-out managed to secure about 60% of the bring out of the European market through their competitive process. As according to some economists, the European Union is likely to pillowcase another recession for a prolonged period of time. Moreover, the community is due to renew ten of its existing contracts among which only four-spot have been secured and the rest of the six are unlikely to be renewed because the board of directors have decided to scale down its current level of operations from 2013. However, Fendas Plc have just corroborate a new five social class contract to supply their product to a major manufacturing company in in the south East Asia from 2013. Therefore, the evaluation of the efforts for the company in the future link up to the new contract has been examined below-
A1.



Evaluation of the new five year contract
After considering all the information given for the new contract, it tolerate be suggested that the project can be undertaken by the company as it gives a positive result after evaluating it by using a Net Present Value (NPV) regularity which is a discounted cash flow technique. The NPV for the new five year contract is equal to 13.53 which is positive. As a result, the contract is unquestionably feasible enough to undertake it. Moreover, it will uphold the company to open up new markets and in like manner can help the company to overcome the economic downturn in the European Union. In order to prove this point, a detail deliberation has been given below-

According to year 2013,
The sales = 2.5 X 20/ 1.61= 31.06
Depreciation for the machineries = (12-1.2)/ 5 = 2.16
According to the CAMP model and also from the information given for the...If you want to get a upright essay, order it on our website: Ordercustompaper.com



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