Finance for Business: Case study on One.Tel Limited and Investment Analysis

FINANCE FOR BUSINESS

Table of Contents
Question 1........................................................................................................................................3
1)One. Tel limited failed in corporate ethics:..............................................................................3
2)How could it have been prevented by management:................................................................3
3) Lessons learnt and business implication for business commodity:.........................................4
(i) Present Value of Cash Flows..................................................................................................4
(ii) Future Value of Cash Flows...................................................................................................5
(iii) Effective annual rate.............................................................................................................5
Question 3........................................................................................................................................5
(a) Best Model selection..............................................................................................................5
(b).................................................................................................................................................7
(i) Calculation of Net Present Value and Internal Rate of Return of EletroTech Ltd Equipment
......................................................................................................................................................7
(ii) Recommendation...................................................................................................................9
(iii) Factors affecting investment decision...................................................................................9
Question 4........................................................................................................................................9
(a).................................................................................................................................................9
(b)...............................................................................................................................................10
(c)...............................................................................................................................................10
(d)...............................................................................................................................................11
(e) Weighted average cost of capital of Dusk Ltd.....................................................................11
Question 5......................................................................................................................................11
(a)...............................................................................................................................................11
(b)...............................................................................................................................................12
...................................................................................................................................................13
REFERENCES................................................................................................................................1

Question 1
1)One. Tel limited failed in corporate ethics:
One. Tel company is an Australian based telecommunications company. The company
are private limited company which offers the landlines phones, mobile phones and internet
services as well as provides residential and commercial telecommunication services and it is a
market leader in providing network solutions for businesses of all sizes or network solution
provider in the alarm industry. The company was very people focused and focused on market as
corporate business. It was the fourth largest telecommunication company in Australia which had
more than two million customers and operates in eight countries. It was a major corporate
collapse in Australia. One. Tel collapse is a classic case which failed in expectation, strategic
mistakes, wrong pricing policy and its unbridled growth. From various studies, One. Tel
company is failed to manage the corporate ethics in the workplace. Australian computer society
code in the light of the information technologies which is employed by the Australian
telecommunication company One. Tel limited (Chitehwe, 2019). The company was seen failure
in information system, in particular failed in the billing system. This case arise issues of
professional behaviour and ethics of information technology personnel and management at One.
Tel limited.
2)How could it have been prevented by management:
Business ethics can place current technology challenges and it has every thing to do with
management So, Managers must acknowledge their role before shaping business ethics. There
was a lack of diversity of opinions in the board and management does not make full discloser to
the board about the management performance of the firm so, their must be discloser about the
business performance and clearly defined responsibilities between the board and the
management which are vital for effective corporate governance. Non- executive board member
should make their own enquiries into firm strategies and performance thus, non-executive
member should have middle and lower management to ensure transparency of information as
well as large investors in firm must be take active interest in managing the firm. Executives who
ignore the business ethics can run the arise of management and corporate liability in strong legal
environment (Mubaraq and Abdulrasaq, 2019). One. Tel company must relive their new ethics
with new guidelines which helps to recognize the guidelines of organization and managerial root.

3) Lessons learnt and business implication for business commodity:
The ethical implication of technology focus on the ways that creative morale and ethical
principles. One. Tel limited technologies studies offers a robust vocabulary for describing where
ethics intersect with technology agency. In the case study of collapse of One. Tel shock to
corporate world while demonstrate that weaknesses in governance practice in relation to control
management system, audit quality, and financial reporting quality so, it has to understand their
business history in terms of the business models, growth, strategies is important for identifying
antecedents to its collapse. Company should work in concert with humans. They must explore
ethics in the classification of future technologies, maintain the ethics relationships between firms
and worker, ethics between firms and other firms and as well as ethical governance of
technology must use with in the organization. One .Tel marketing and advertising campaigns
created an impression that the company was targeting the back packaging community which
helps to sign up new customers which accelerate sales and growth of customers. One. Tel
collapse leave several lessons on corporate strategies, firstly it is not enough to acquire
customers in large scale unless customers must be contributed towards profitable of the firm.
Secondly, sales generation are not enough unless revenues are collected into cash timely and
third, high competitive price only gain the market share which can disastrous consequences.
Question 2
(i) Present Value of Cash Flows
Present Value of Cash flow (in case of even cash flow) = Cash Flows * Annuity factor
Present Value of Cash Flow
Annual Interest Rate 9.24%
Semi-annually interest rate 4.62
Total period (years) 25
Cash flows 100000
Annuity Factor 19.38235
Present value of Cash flow ($1,938,234.63)