Dell Data Case

Université Catholique de Louvain

LSMS 2100 

Advanced Finance
Professor : Marc Deloof Assistant : Gaël Imad Eddine

early Assignment : Dell Data Case

Group :
Bauchau Laurent : 23890600  Janus Guillaume : 41140600  Lenoble Daphné:   Van Ossel Sébastien : 27850600 

Academic Year 2009-2010

1.

Introduction
In this first assignment, we pack been asked to place a new Dells visit. In orderliness to do this, we

get out use two of the most-used measures for evaluating projects which are severally the Net pay Value (NPV) and the Internal wander of give (IRR). However, if we want to be able to calculate such measures we allow for have to first compute the Free money Flows that the project will generate now and in the future. at one time, to compute these cash flows, we will to work step-by-step. First, we will determine the Unlevered Net Income for for each one twelvemonth. This will be done by calculating the receipts Profit, subtracting the Depreciations and then taking into account the Income Tax. Then, once we will have the Unlevered Net Income for each year, we will compute the Free Cash Flows by adding the Depreciations and subtracting the Capital Expenditures and the Changes in Net Working Capital.



later on that, we will use a discount factor on these Free Cash Flows in order to find their Present Values. Using these Present Values of our Free Cash Flows, we will compute the Net Present Value and the Internal Rate of Return of the project. Finally, we will make some recommendations about the project. Now before we start our calculations, two comments need to be do: First, we will set up the timeline over 16 age (Year 0 to 15) as the main investment takes place in year 0, and the depreciation of the last investment ends in year 15. Indeed, the last investment is made in year 5 and therefore its depreciation ends in year 15. Secondly, note that the satisfying analysis we do here is based on the info from fiscal year 2008 (ending in January 2009), downloaded from MarketWatch....If you want to get a full essay, order it on our website: Ordercustompaper.com



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