FIN571 Individual Guillermo Furniture Store Analysis (with step-by-step calculations) - 18721

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  • Posted on: Wed 17 Jul, 2013
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Resource: The Guillermo Furniture Store Scenario or your own organization, with the approval of your facilitator

Write a paper in no more than 1,750 words that focuses on the analysis of different alternatives available to Guillermo. Include a sensitivity analysis. 

Determine the optimal weighted average cost of capital and discuss the use of multiple valuation techniques in reducing risks.

Calculate net present value of future cash flows for each of the alternatives. 

Format your paper consistent with APA guidelines.

Solution Description

Guillermo Navallez, the owner of Guillermo Furniture Store, has been struggling to stay profitable because of a rise in the cost of labor and foreign competition that uses high technology and sells the products at low prices.  In researching what his competitors are doing to handle such changes Guillermo discovered a couple of options he could try to keep his business profitable.  Guillerm