Free Essay

Aes Case Number 3

In: Business and Management

Submitted By nincubus
Words 326
Pages 2
#3
After we calculated the weighted average costs of capital (WACC) for each project one can clearly see that the costs of capital are increasing. The increase in costs differs though from project to project. The methodology used assumes that every project has got a different business-risk specific score which then leads to different adjustments on the cost of capital. For example the project “Andres” which is located in the Dominican Republic has got, according to the score, the highest risk. Having a risk score of 3 the adjustment in that case was 15 %. So to the former discount rate of 14.94 % we had to add 15 % leading to a new discount rate of 29.94 %. Other projects, like the “Red Oak” project in the United States had a lower risk and therefore the adjustment was low as well. In this case 3.20 %, leading to a new discount rate of 9.66 %. This is the lowest discount rate for all projects. So the discount rates are ranged in between 9.66 % and 29.94 %. All the results are shown in Table 1. Project | | | WACC | Adjusted WACC | Andres | 14.94 % | 29.94 % | Caracoles | 22.23 % | 31.36 % | Drax | 9.05 % | 16.35 % | Eletropaulo | 14.38 % | 25.26 % | Gener | 8.88 % | 12.63 % | Haripur | 12.93 % | 16.88 % | Kelvin | 9.83 % | 15.18 % | Lal Pir | 15.95 % | 23.08 % | Los Mina | 14.61 % | 27.44 % | OPGC | 10.66 % | 18.11 % | Ottana | 8.65 % | 10.77 % | Red Oak | 6.46 % | 9.66 % | Rivnoblenergo | 15.56 % | 18.58 % | Telasi | 15.86 % | 28.51 % | Uruguaina | 14.10 % | 25.15 % |
Table [ 1 ]
Since all risk scores are positive and therefore lead to an increase in discount rates the value of all projects will decrease. The extent to which the value of these projects decreases is depending on the rate of adjustment. The higher the adjustment is the less the net present value of a project will be.

Similar Documents

Free Essay

Aes Case Study

...GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY S HR-3 FEBRUARY 1997 HUMAN RESOURCES AT THE AES CORPORATION: THE CASE OF THE MISSING DEPARTMENT Dennis Bakke, the CEO of AES, a company that develops, builds and operates electric power plants, sat in his office late in 1996 and thought about the question that was perennially posed to him: could AES, soon to have some 25,000 people located literally all over the world following a recent purchase of power plants in Kazakhstan, continue to operate with virtually no staff functions and, specifically, without any human resource staff anywhere in the corporation? The absence of centralized staff — or, for that matter, much staff at all — had been one of the themes guiding the design and operation of the corporation since its founding. The company, in addition to having no personnel department, had no public relations, legal, environmental, or strategic planning departments. Its chief financial officer, Barry Sharp, saw his job not so much as running a centralized finance function but rather as helping all the AES employees as they made important decisions about financing and investments in a very capital intensive business. But the company was becoming much larger and increasingly geographically dispersed. Perhaps those early decisions needed to be rethought. Could what worked for so long continue to work as the corporation grew and operated increasingly on a global basis? Could the advantages of flexibility and having virtually...

Words: 10340 - Pages: 42

Premium Essay

None

...on charges of murder against a young boy accused of killing his father. The case against the boy looks irrefutable and indomitable. All the jury members, except one – Juror 8, are convinced that the boy is guilty of the crime. Juror 8 is not completely convinced about the case and he starts the deliberations, in which all the members have to participate to reach a common conclusion. The main characters are:- Juror 1 | Deepak Kejriwal | Juror 2 | Amitabh Srivastava | Juror 3 | Pankaj Kapur | Juror 4 | S. M. Zaheer | Juror 5 | Subhash Udghate | Juror 6 | Hemant Mishra | Juror 7 | M. K. Raina | Juror 8 | K. K. Raina | Juror 9 | Anu Kapoor | Juror 10 | Subbiraj | Juror 11 | Shailendra Goel | Juror 12 | Aziz Qureshi | The nature of each character is slowly revealed through the process of the discussions which reflect their personal beliefs, convictions, notions, idiosyncrasies, prejudices, and cultural & social backgrounds. In this paper I have tried to determine the personality of each of these characters on the basis of the structure of their personalities or psychological state at work (I used these parameters which were provided in the select readings provided to us by Prof. Bhupen Srivastava). And hence I have distinguished them in the following manner:- 1) Parent Ego State a) Nurturing Parent (NP) b) Punishing Parent (PP) 2) Adult Ego State (AES) 3) Child Ego State a) Natural Child (NC) b)...

Words: 4210 - Pages: 17

Premium Essay

Aes Case

...1. Consider the Global Sourcing Initiative from an overall perspective. How effective has the effort been so far? Is AES applying a truly strategic approach? Phase I of the global sourcing initiative has been successful so far. Naqvi reported that the cost savings from Phase I implementation are somewhere in the 7%-10% range. Phase I efforts focused on only 16 of the 36 identified categories, and included building the global sourcing team, designing the program, conducting spending analysis, and establishing a procurement function and internal controls. The success of the whole initiative will depend upon the successful completion of phases II and III, and whether or not the global sourcing team is able to achieve its goal of reducing annual external purchases by $150 million. AES is certainly moving towards a strategic approach by focusing on centralization. While the global nature of AES’s business and the presence of suppliers worldwide makes the transformation to a centralized structure difficult, it is definitely a step in the right direction. The decentralization approach early on allowed AES to grow rapidly and capitalize on regional developmental opportunities, however, recent loses, and price and currency pressure in major markets, such as Brazil, has forced AES to think about reducing cost by employing reduced capital expenditure, controlled business developmental spending, exits from nonperforming businesses, and a centralized organization structure that makes...

Words: 1995 - Pages: 8

Premium Essay

Hospital Infection Rates in St Elsewhere

...least 200 beds and an intensive care unit. In each hospital, 400 patient admissions were randomly selected in 2004, and 200 in 2008. Fifty percent of the records were of patients who were discharged from the hospital after a stay of at least 24 h. The other 50% were of patients who died in hospital. These patients were sampled from all inpatient deaths, regardless of their length of stay. We did not exclude patients admitted with an explicitly palliative care plan; this information was noted down and taken into account during the review process. During analysis, overall AE rates were corrected for the oversampling of deceased patients, because in our sample, 50% of the patients were inpatient deaths, and in reality 3%. In the results, we weight our 50% back to the actual 3%, so the presented results are a representation of the total hospital population of discharged and deceased patients. We followed the same procedure for the distribution of types of hospitals. Patients admitted to the psychiatry department, obstetrics and children under 1 year of age were excluded. The...

Words: 5937 - Pages: 24

Premium Essay

Importance Of Cryptography

...CHAPTER 1 INTRODUCTION 1.1 CRYPTOGRAPHY In-order to get security aspects ranging from commerce and payments to the private and public communications there are number of methods proposed till now. Among them cryptography is an important aspect for securing communications in transmitting, receiving and for storage electronic data. But it is necessary to know the method of securing data transmission by Cryptographic technique. 1.2 THE PURPOSE OF CRYPTOGRAPHY Cryptography is among one of the ancient arts of writing languages in secret code. In 1900 B.C an Egyptian scribe was the first document used inscription for cryptography. Some of the experts argued that cryptography writing has appeared simultaneously after the writing has been invented,...

Words: 10253 - Pages: 42

Premium Essay

Case

...AES-Telasi: Power Trip or Power Play? (A) It would take too long to explain why there was very little electricity and no heat in Tbilisi in the winter months….The reasons were so intertwined with Georgian networks of “patronage,”, black hole, patchwork, and jerry-rig that it was impossible to separate sabotage (a strange and sudden fire at Gardabani, the country’s only thermal power station) from corruption (the bungling and greedy idiots as SakEnergo, the state energy concern) from non-payment (less than 30 percent of the population in Tbilisi paid their electricity bills; Georgia owed Russia millions in electricity back debts) from theft (part of the copper transmission line between Armenia and Georgia was nicked one winter), from black clan economics (someone had the kerosene trade sewn up; it was in someone’s interest to make sure there was no cheap clean alternative) from incompetence (the next winter the pride of Gardabani’s brand new gleaming Unit 10, repaired with sackfuls of German money, broke down because the engineer on duty didn’t know what to do when a red light on the computerized panel started to blink unexpectedly) from infrastructure deterioration (once the whole of eastern Georgia went black as the 500 kW line from the Enguri hydro plant collapsed under the weight of what one commentator described as “pre-election” abuse) from the oft-repeated worn excuse: “The Soviet Union collapsed; there was a civil war.” —Wendell Steavenson (2002), Stories I Stole (Grove...

Words: 9256 - Pages: 38

Free Essay

Partial Encryption on Fly

...A NOVEL APPROACH TO IMPLEMENT DISK SECURITY USING PARTIAL DISK ENCRYPTION Anurag Sharma M L Smitha Tarun T Arya Minal Moharir Information Science and Engineering RV College of Engineering The main objective of the paper is to develop an efficient and cost effective method for Hard Disk Drive(HDD) Security. The task is implemented using Partial Disk Encryption (PDE) with Advanced Encryption Standards(AES) for data security of Personal Computers(PCS) and Laptops . The focus of this work is to authenticate and protect the content of HDD from illegal use. The proposed method is labeled as DiskTrust. FDE encrypts entire content or a single volume on your disk. Symmetric key uses same key for encryption as well for decryption. DiskTrust uses these two technology to build cost effective solution for small scale applications. Finally, the applicability of these methodologies for HDD security will be evaluated on a set of data files with different key sizes. KEYWORDS- INFORMATION SECURITY, INTEGRITY, CONFIDENTIALITY, AUTHENTICATION, ENCRYPTION. I. INTRODUCTION In today’s world information security is an important concern for every individual. People spend hundreds of dollars in protecting their data to stay in the competition, and any leakage of crucial data can result in unrecoverable loss. Information security is the most important form of security even before network security, as information stored securely can only be transmitted securely over a network, there by...

Words: 2258 - Pages: 10

Premium Essay

Aes Telasi

...AES-Telasi: Power Trip or Power Play? (A) It would take too long to explain why there was very little electricity and no heat in Tbilisi in the winter months….The reasons were so intertwined with Georgian networks of “patronage,”, black hole, patchwork, and jerry-rig that it was impossible to separate sabotage (a strange and sudden fire at Gardabani, the country’s only thermal power station) from corruption (the bungling and greedy idiots as SakEnergo, the state energy concern) from non-payment (less than 30 percent of the population in Tbilisi paid their electricity bills; Georgia owed Russia millions in electricity back debts) from theft (part of the copper transmission line between Armenia and Georgia was nicked one winter), from black clan economics (someone had the kerosene trade sewn up; it was in someone’s interest to make sure there was no cheap clean alternative) from incompetence (the next winter the pride of Gardabani’s brand new gleaming Unit 10, repaired with sackfuls of German money, broke down because the engineer on duty didn’t know what to do when a red light on the computerized panel started to blink unexpectedly) from infrastructure deterioration (once the whole of eastern Georgia went black as the 500 kW line from the Enguri hydro plant collapsed under the weight of what one commentator described as “pre-election” abuse) from the oft-repeated worn excuse: “The Soviet Union collapsed; there was a civil war.” —Wendell Steavenson (2002), Stories...

Words: 9283 - Pages: 38

Free Essay

Environmental Case Study: Sydney Airport

...Environmental Case Study: Sydney Airport ! Introduction ! With Botany Bay on one side and the CBD of Australia’s largest city on the other, Sydney Airport has a full range of environmental issues to monitor and manage. Environmental management at Sydney Airport is conducted in accordance with the Sydney Airport Environment Strategy. Sydney Airport is Australia’s busiest airport, with over 8 million international travelers and 15 million domestic travelers arriving and departing on approximately 290,000 flights annually. This makes Sydney Airport a major source of pollution in Australia today. Sydney Airports environmental Strategy was developed in accordance with the current laws and legislations. It provides the system by which long term and daily environmental management can be planned, implemented and reviewed, in a cycle of continuous improvement. Sydney Airports Environmental Strategy comprises the following main components: Environmental Policy · Planning, including Environmental Aspect and Risk Identification and Assessment, Objectives, Targets and Action Plans · Implementation and Operation, including Environmental Responsibilities, Training and Awareness, Communication, Document and Operational Control, and Emergency Preparedness and Response ! · Checking and Corrective Action, including monitoring, assessment and auditing, and ! · Management Review. ! Overview ! ! · · · · · · · · Environmental Management and Stakeholder Relationships Resource Use...

Words: 1949 - Pages: 8

Free Essay

Sydney Airport

...Environmental Case Study: Sydney Airport ! Introduction ! With Botany Bay on one side and the CBD of Australia’s largest city on the other, Sydney Airport has a full range of environmental issues to monitor and manage. Environmental management at Sydney Airport is conducted in accordance with the Sydney Airport Environment Strategy. Sydney Airport is Australia’s busiest airport, with over 8 million international travelers and 15 million domestic travelers arriving and departing on approximately 290,000 flights annually. This makes Sydney Airport a major source of pollution in Australia today. ! ! · ! ! Sydney Airports environmental Strategy was developed in accordance with the current laws and legislations. It provides the system by which long term and daily environmental management can be planned, implemented and reviewed, in a cycle of continuous improvement. Sydney Airports Environmental Strategy comprises the following main components: Environmental Policy · Planning, including Environmental Aspect and Risk Identification and Assessment, Objectives, Targets and Action Plans · Implementation and Operation, including Environmental Responsibilities, Training and Awareness, Communication, Document and Operational Control, and Emergency Preparedness and Response ! · Checking and Corrective Action, including monitoring, assessment and auditing, and ! · Management Review. ! Overview ! ! · · · · · · · · Environmental Management and Stakeholder Relationships Resource...

Words: 1949 - Pages: 8

Free Essay

Asasa

...DES, AES. | 2) 4 mod operation in block cipher * In cryptography, a block cipher operates on blocks of fixed length, often 64 or 128 bits. * Because messages may be of any length, and because encrypting the same plaintext under the same key always produces the same output. * Several modes of operation have been invented which allow block ciphers to provide confidentiality for messages of arbitrary length. * The 4 modes of operation are * Electronic Code Book (ECB) * Cipher Block Chaining (CBC) * Output Feedback (OFB) and * Cipher Feedback (CFB) 3) Briefly describe the working of DES * most widely used block cipher in world adopted in 1977 by NBS (now National Institute of Standards and Technology NIST)as Federal Information Processing Standard 46 (FIPS PUB 46) * encrypts 64-bit data using 56-bit key * has widespread use * The algorithm itself is referred to as the Data Encryption Algorithm (DEA) * IBM developed Lucifer cipher by team led by Feistel in late 60’s used 64-bit data blocks with 128-bit key * then redeveloped as a commercial cipher with input from NSA and others * in 1973 NBS issued request for proposals for a national cipher standard * IBM submitted their revised Lucifer which was eventually accepted as the DES 4) Advantage of TRIPLE DES * Triple DES uses longer bits of key compared to DES (i.e. 112 bits or 168bits depending whether the key is broken down into 2 or 3 sub-keys)...

Words: 1149 - Pages: 5

Premium Essay

Budgeting at Aes

...DESAI Globalizing the Cost of Capital and Capital Budgeting at AES In June 2003, Rob Venerus, director of the newly created Corporate Analysis & Planning group at The AES Corporation, thumbed through the five-inch stack of financial results from subsidiaries and considered the breadth and scale of AES. In the 12 years since it had gone public, AES had become a leading independent supplier of electricity in the world with more than $33 billion in assets stretched across 30 countries and 5 continents. Venerus now faced the daunting task of creating a methodology for calculating costs of capital for valuation and capital budgeting at AES businesses in diverse locations around the world. He would need more than his considerable daily dose of caffeine to point himself in the right direction. Much of AES’s expansion had taken place in developing markets where the unmet demand for energy far exceeded that of more developed countries. By 2000, the majority of AES revenues came from overseas operations; approximately one-third came from South America alone. Once a critical element in its recipe for success, the company’s international exposure hurt AES during the global economic downturn that began in late 2000. A confluence of factors including the devaluation of key South American currencies, adverse changes in energy regulatory environments, and declines in energy commodity prices conspired to weaken cash flow at AES subsidiaries and hinder the company’s ability to service subsidiary...

Words: 8674 - Pages: 35

Free Essay

The Difference Between Cracking a Wep and a Wpa Network Passkey and How to Protect Yourself from It

...Technology is consistently evolving and changing and wireless networking is no exception. There are constant updates as well as vulnerabilities in wireless networking, and my goal is to inform you of those vulnerabilities to help you stay protected from them. Wired Equivalent Protocol (WEP) was the original wireless security protocol. WEP was flawed in numerous ways and hackers were able to get information in minutes. WPAv1 was then introduced as an interim replacement because WEP was that flawed. WPAv1 was made to improve on the secure wireless networks and also used a newer and more improved algorithm. When WPAv2 was finally released, many devices began to be created to be compatible with the AES algorithm WPAv2 uses. There still have not been any major hacks or attacks on a WPAv2-AES network that would cause the Wi-Fi alliance look into using another algorithm a replacement. WPAv1 is too easy to hack so it is not recommended and WPAv1 is now susceptible to multiple types of attacks. There are several different ways you can help to protect yourself and your information. Verify your spam in your e-mail to make sure a file accidentally was not forwarded to spam. There are also others to improve your security. The length of your passkey is very important in security, as well as keeping an up-to-date anti-virus and staying up-to-date on all the latest hacks, cracks, and technology are critical for your protection. N. Justin Bernard Network Security Term Paper November 13, 2012 ...

Words: 3607 - Pages: 15

Free Essay

Encryption

...process and a different private key for the decryption process. Most all providers now use 128 bit encryption which means there are 339 trillion different combinations to crack the code. (FAFSA) This ensures security of the data you send over the internet through secure sites. 128-bit encryption is so secure that trying to crack it simply isn't feasible. 128-bit encryption is 309,485,009,821,345,068,724,781,056 times stronger than 40-bit encryption. (FAFSA) It would take significantly longer than the age of the universe to crack a 128-bit key. Current cracking technology puts 128 bit encryption in the very hard to crack realm, but is not unbreakable. It just makes the duration longer and resource consumption more intense. In that case, those trying to crack have to consider if the unknown asset is worth the effort. State secrets may well be worth the effort 128 bit encryption is not bad encryption, but nor is it the best, the encryption standard for the government is 256 bit. If one wants to improve security, he or she could consider increasing to a 256 or 512 bit encryption. Also the use of salt and multiple algorithms will help increasing the security of one’s files. One simple and easy to use tool is: EncryptOnclick which has 256 bit encryption, and allows easy file encryption. It will always be possible for someone with unlimited resources to crack any type of encryption, as there is no effective way of preventing brute-force. Brute force would allow someone...

Words: 631 - Pages: 3

Premium Essay

Manet

...International Journal of Emerging Technology and Advanced Engineering Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 3, Issue 1, January 2013) Applying Security to Data Using Symmetric Encryption in MANET Amol Bhosle1, Yogadhar Pandey2 Department of Computer science & Engineering,SIRT Bhopal Abstract-- Mobile ad-hoc network is wireless network composed of different nodes communicate with each other without having to establish infrastructure. The security of such network is a major concern. To improve the security of such network, technique proposed here is securing routing protocol AODV through the use of Symmetric Encryption algorithm AES. This secures the data as well as preserves the confidentiality. Further future work to be carried as of node authentication using IP address and using the AODV routing protocol and digital signature scheme. Keywords-- Mobile ad-hoc, symmetric encryption algorithm, confidentiality, AODV, Digital signature, IP address The nodes involved in a MANET should collaborate amongst themselves and each node acts as a relay as needed, to implement functions e.g. security and routing. C] Multihop Routing: Basic types of ad hoc routing algorithms can be singlehop and multihop, based on different link layer attributes and routing protocols. Single-hop MANET is simpler than multihop in terms of structure and implementation, with the cost of lesser functionality and applicability. When delivering data packets from...

Words: 2868 - Pages: 12