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  • Diamond Energy Resources Case Questions w24

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    Donny Bui
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    Diamond Energy Resources is requesting a one page, single spaced response in size 11 font with 1" margins answering four questions about a potential investment. Students are to calculate the tax adjusted WACC, determine the NPV of the project, identify uncertain items and how to improve the decision, and recommend whether DER should invest based on benefits and risks. An excel file with relevant exhibits is provided.

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    Diamond Energy Resources is requesting a one page, single spaced response in size 11 font with 1" margins answering four questions about a potential investment. Students are to calculate the tax adjusted WACC, determine the NPV of the project, identify uncertain items and how to improve the decision, and recommend whether DER should invest based on benefits and risks. An excel file with relevant exhibits is provided.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    8 views1 page

    Diamond Energy Resources Case Questions w24

    Uploaded by

    Donny Bui
    Diamond Energy Resources is requesting a one page, single spaced response in size 11 font with 1" margins answering four questions about a potential investment. Students are to calculate the tax adjusted WACC, determine the NPV of the project, identify uncertain items and how to improve the decision, and recommend whether DER should invest based on benefits and risks. An excel file with relevant exhibits is provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Diamond Energy Resources (DER)

    Due February 26, 2024. Hardcopy, PRIOR to the start of class. Your name MUST appear on the
    document.

    To help you save some time I have posted an excel file with Exhibit 9 on D2L.

    Please answer the following four questions. You have one page (single sided) to submit your answers,
    single spaced, size 11 font. Please use 1” margins all around.

    1. Calculate the tax adjusted WACC for the proposed investment. Use the target values for debt
    and equity to do the weighting.
    2. What is the NPV of this project?
    3. Which items do you consider most uncertain? How or what can be done to improve the quality
    of the decision in a world of uncertainty? What elements do you think are missing from the cash
    flow forecast?
    4. After considering the benefits and the risks of this investment, should DER invest in the project?
    Why or why not?

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