Finances – scenarios – case

1. Calculate the expected cash flows (using template provided and display results)

2. Calculate the NPV

3. Calculate the IRR

4. Calculate the Payback

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Evaluate:

1.  What are viable signings in economic terms?

2.  What is the signing that creates more value?

3.  Suppose we consider solely the risk factor, that is, EGARA FC descending to Second Division. Based on this single criterion, which player do you think should be signed?

4.  Make your recommendation on which player should be contracted, bearing in mind all the given information.

Scenario 1:

5.  To what amount should the price of his signing be lowered for it to be viable? 

6.  To what amount should the price of his signing be lowered for it to be more equal to the signing with the highest NPV? 

7.  To what amount should the price of his signing be lowered for it to be equaled to the signing with the highest IRR? 

Scenario 2:

5.  To what amount should the salary be lowered in order to be the signing with the highest IRR? 

Scenario 3: 

6.  To what amount should be paid within three years before the signing was feasible?

7.  Make a recommendation again about what signing must be done bearing in mind the information explained in the whole case