This website uses cookies to ensure you have the best experience. Learn more

Investment Project Essay

1752 words - 8 pages

Becoming a multinational corporation gives the company a chance to grow and profit on a completely different level and could potentially make that corporation a household name worldwide. Not only does this create many opportunities for the company, it allows investors a chance to diversify their portfolios and enter the world of international investing. This project allowed me to learn more about international investing and competition in the global market. Two foreign stocks that trade on U.S. stock exchanges and two U.S.-based multinational corporations were included in the portfolio I created. Anheuser-Busch (BUD), a brewing company founded in 1366, produces, markets, and distributes ...view middle of the document...

The company was founded in 1902 and is headquartered in Minnesota. Exxon Mobil Corporation (XOM) was founded in 1870 and is headquartered in Texas. This corporation searches and produces for crude oil and natural gas. Exxon also manufactures and markets petrochemicals and transports and sells natural gas, petroleum products, and crude oil. It operates in all continents except Antarctica.
After selecting the four stocks for my portfolio, I gathered the historical data over two years and calculated the daily returns for all four stocks, as well as the average compounded daily return, the average compounded annual return, and my portfolio’s return. This data is located in the attached Excel spreadsheet and in the table listed below. Reasons for each stock’s return are also listed.
Name of Firm | Average comp annual return | Reason(s) |
1. Anheuser-Busch (BUD) | 28.75% | Environment friendly & highly profitable |
2. National Grid (NGG) | 22.60% | Operational & Dividend security |
3. 3M Company (MMM) | 30.21% | Currently trading at a new lifetime high |
4. Exxon Mobil (XOM) | 15.92% | Size & potential growth opportunities |
Portfolio (average) | 24.37% | |
In the news, Anheuser-Busch recently announced its commitment to a new global environmental goal to reduce the company’s carbon emissions in logistics operations by the end of 2017. In support of the new goal, the company promised to implement several innovative measures and expand proven practices across its global operations. Another possible reason for Anheuser-Busch’s 28.75% return is the company is considered the beer industry leader. In 2013, Anheuser-Busch recognized 43.2 billion USD revenue. The company’s desire to be “the Best Beer Company Bringing People Together For a Better World” truly shows through all of their environmental efforts. Headlines suggest that two of National Grid’s strengths are the reason for positive returns for the company. In the United Kingdom, National Grid owns the nation’s gas and electricity transmission systems, and because seasons produce a steady and predictable cycle of demand for energy, the firm can budget for future capital requirements with a reasonable degree of accuracy. The amount of security this corporation has over many aspects of the firm is what makes the company attractive as an investment proposition. According to the Street, the possible reason for 3M Company’s 30.2% return is because it was recently identified by Trade-Ideas LLC as a new lifetime high candidate. Trade-Ideas identified 3M as such a stock due to 3M Company having an average dollar-volume of $259.3 million, and on any given day, 3M Company may trade roughly 40,000 shares. MMM is trading at a new lifetime high and this could be serious cause for an increase in return. Without even looking in the news, the first thing that comes to mind when thinking of Exxon Mobil is size. As the second largest corporation in the world, Exxon Mobil has created...

Other Papers Like Investment Project

Unit 1 Ip Essay

544 words - 3 pages payback period was Payback Period = Investment (Total Cost of the Project) / Annual Cash Inflow. The formula used to calculate the net present value is as followed (1+r) ^t. Please click link to view excel spreadsheet for the assignment financial management unit 4 IP excell.xlsx. In order for a project to be accepted using the Payback rule the project according to Brooks, (2010) states that it is okay to accept a project if the payback period

Additionality Assessment Essay

2574 words - 11 pages Wind Farm Project” at Chalkewadi, District Satara, State Mahararashtra 3. 10.6 MW wind farm at Village Badabagh, District Jaisalmer, Rajasthan. All the 3 projects demonstrated investment barrier in the additionality. The 6.25 MW and 10.6 MW project showed that the cost of power generation through wind is higher compared to that of coal and fuel oil, whereas. The 3.75 MW project has shown how due to non payment by Maharashtra state electricity

What Is the Biggest Problem in Developing Accurate Cost Estimates? Why?

838 words - 4 pages Project cost estimation helps management to determine the feasibility of project before undergoing the actual investment. If the cost estimation turned to be incorrect, the management's decision could go in favor the wrong project proposal, and the whole investment may be in stake. Estimating project cost is the responsibility of the project manager. It is one of the difficult tasks in project management. There are many reasons that makes

Assignment 3-Capital Budgeting Analysis

1745 words - 7 pages analyzed to determine which project is best for a city council. The calculations will also help to justify each project and if both can be used simultaneously. 2 CRUNCHING NUMBERS Payback Period (Project A and B) The period for payback is the technique which is used measure the length of time that a project recoups the initial investment of the firm. Following the technique, the profits before depreciation (cash flow) is the amount of time

Mozal Case

561 words - 3 pages  investment  in  Africa.   Promote  private  sector  investment,  spur  investment  along  the  Maputo  Corridor.   Lots  of  experience  in  emerging  markets,  know  how  to  structure  deals.     Bring  credibility  to  a  project  and  provide  comfort  to  poten'al  lenders.  Reduced  poli'cal  risk.   Perform  detailed

Intel

410 words - 2 pages environment. Nine years after the initial project was announced, hindsight affords a fresh perspective on Intel Costa Rica and its numerous impacts, many of which were unexpected. Beyond its obvious direct effects on the country’s economy in terms of gross domestic product (GDP), foreign direct investment (FDI), and trade growth, Intel’s investment decision was the catalyst for a realignment of Costa Rica’s competitive platform as an investment location

Investment Detective

937 words - 4 pages ranking of two mutually exclusive projects. Finally, the case is a vehicle for introducing the problem created by attempting to rank projects of unequal life and the solution to that difficulty—the equivalent-annuity criterion. (Questions for this case are on page 257) THE INVESTMENT DETECTIVE Comparative Analysis of Investments 1. Project free cash flows (in

Investment Detective Case

617 words - 3 pages Financial Management (BUSI 640) Professor Faulkender Investment Detective Case Questions The purpose of this case is to practice estimating the value created from taking on different projects and how those values change given differences in rates of return and project duration. We will look at different ways of evaluating capital budgeting decisions and see why Net Present Value (NPV) generates better decisions than

Project Management Recommendation

926 words - 4 pages proposed projects to invest in. Our team has performed extensive analysis of the figures and data in which you have provided, and we feel Piper Industries would benefit the most from investing in project code name Palomino. A large portion of our decision/recommendation is based around the premise of greatest return on investment (ROI) along with minimal risk. Details of analysis are outlined below: As you may or may not be aware, each and every

Capital Budgeting

2064 words - 9 pages projects large and expensive- not easy to change course Allows management team to give input and be on same page  Capital budgeting techniques include:      Payback Period Discounted Payback Period Net Present Value (NPV) Internal Rate of Return (IRR) Profitability Index (PI) Payback Period- The Concept What is it? The payback period for a project is the expected time it will take to recover the original investment. The

A Manufacturing Company Is Thinking of Launching a New Product. the Company Expects to Sell $950,000 of the New Product in the First Year and $1,500,000 Each Year Thereafter. Direct Costs Will Be 45%...

706 words - 3 pages Payback and NPV Tiffanie Lampley FINA 310, Unit 4 IP AIU Instructor Morales December 8, 2013 Abstract This essay includes projected cash flows for the next eight years. The payback period method is used to determine the amount of time it would take the company to recoup initial investment costs. The net present value is then tabulated in order to determine whether the project should be rejected or accepted. Payback and NPV

Related Essays

International Investment Project Essay

566 words - 3 pages International Investment Project Section 1 – United States-Based MNCs 3M Co: The 3M Company was previously called Minnesota Mining and Manufacturing Company. The headquarters are based in the St. Paul suburb of Maplewood, Minnesota. They operate in more than 65 countries, employing 88,000 people and producing more than 55,000 types of products, which are available for purchase in more than 200 countries. During the period Nov 24 â

Continental Essay

1895 words - 8 pages THE INVESTMENT DETECTIVE CASE 1.The projects cannot be ranked simply by looking the cash flows as the time value of money aspect is not being considered.Neither the same payback period is there. But ranking by simple cash flow received at the end are : project 3,project 5,project 8

Project Management Recommendation Ops571 W5 Essay

915 words - 4 pages the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high. My feasibility study focused on five areas which includes the anticipated Return on Investment (ROI), length of project, break-even analysis, risk level and overall benefit to Piper Industries. Please see below for the results and excel worksheet attached. Juniper

Roi Analysis

831 words - 4 pages performance, it also has limitation in some areas. For example, Case 1 Project ROI Net Return Investment Project A 70% $7,000 $10,000 Project B 30% $30,000 $100,000 When looking at project A and project B, based on ROI, investing in project A is the obvious option. However, the net return on project B is more than four times higher than project A. Case 1 tells us that ROI only focuses on maximizing the investment return ratio and fails to lead