The case paper, Electric’s, Inc., is designed to assess the student’s ability to integrate the concepts, theories and calculations presented in the course into a real-world application. Part of the...

Case Analysis
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The Report will define and explained in a process which will be addressed in report that will be nine pointers
Answer 1: Importance in relation to energy cost situation
Energy cost situation main consideration will be ensuring that the concept of the higher inclination which deals with the demand for the evident in connection with the general population transportation. It will deal with the increased expense in connection with the energy prices; it will also cause a subsequent increase especially in context to the demand for the public transportation. It will also be cheaper for the given set of people especially as compared to applying the cars for the personal uses.
In terms with the increase process of the demand of the public transportation it will improve the demand for the public buses and it will see an increase in revenue sales of California Best Trucks.
It will be defined in a connection with the Energy costs that will be exceptionally deal with an impact ridership on public transports. It is important that the California Best Truck's market will definitely examination in terms with the future expected changes especially in terms with the energy in relation to the cost especially in relation to the affect ridership.
Answer 2
In terms with the Working capital of the company it is evident that the fluctuation of the sales and the concept of the percentage of net working which relates to the concept of having a capital level to the sales value and at the same time remains at a level of around fifteen percent and it will continue the time line to around a twenty years according to the assumption. In term with the straight line depreciation basis and the process of being the annual depreciation the adjustment will be definitely the salvage value along with value which is computed on the basis of the salvage value and are considered as a cash inflow in year twenty.
    The computation will be based on the following manne
Risk free rate + beta (market premium): 3%+1*6.5%=9.5%, so the equity is 9.5%
(Brigham, & Ehrhardt, 2015)
Answer 3
In terms with the appropriate discount factor to use for evaluating the electric motor project it is evident that the computation will be defied under the manner that the analysis will be done on the following basis which is explained as below:-
Cost of capital is considered to be the amount in terms with the Weighted Average cost of capital for the concept of the elements which being electric motor project.
In relation to the process of the Debt to Equity ratio which being 0.5, it is evident that the ideal ratio used by the General generators which being the D/E is 0.5.
So Beta =...