英语论文网

ues, the future cash flow should be discounted at appropriate risk adjusted discount rate which i have taken into consideration in my further calculation.

 

The first step towards the calculation of Present value requires the estimate of ARPU in 3G market along with forecast of subscribers in 3G market (Table 5.8) which has been already demonstrated above. Furthermore using these figures, I have forecasted the expected 3G (UMTS) revenues during 2011-2020 which have been demonstrated in figure 5.18 shown below.

 

It can also been grasped from the figure that I have divided the 3G revenues within the leader and follower based on their 3G market share. . Additionally by means of using the present value formula that is where “” is the cash flow, “t” is time in years and “i” refers to discount rate which is 13% (the official interest rate by state bank of Pakistan as of June 2010), I have managed to obtain the present values of future cash flow that are expected to be received during 2011-2020. The figures for present values of cash flows are demonstrated below in figure 5.19.

 

Finally I have computed the sum of PV of all cash flows that are expected during 2011-2020, which turn out to be $1190.385 Million. Therefore the sum of present value of all cash flows that are expected to be received has been taken as an input for model 2.

 

FISRT MOVER (PRE-EMPTIVE) ADVANTAGE MULTIPLICATIVE FACTOR:

 

Due to the fact that both the model which I have taken into account for my research are within the class of pre-emption models, they have a default assumption that leader will always have an advantage over the follower which is known as first mover advantages. Before the follower enters the market, the leader tends to possess a pre=emptive by means of receiving Rm*, where m* refers to value which is larger than 1 and when multiplied by Q results in number of units sold by leader when it is alone in the market. As we know that leader’s 3G market share is 75% (3/4), m* turns out to be 4.

 

Additionally considering the fact that in the following models the pre-emptive advantage tends to be permanent, therefore even after follower enters the market, leader tends to posses pre-emptive advantage m which refers to value which is larger than 1 and when multiplied by Q results in number of units sold by leader when follower enters the market. As we know that leader’s 3G market share is 75% (3/4), m turns out to be 3.

 

CAPEX / INVESTMENT COSTS:

 

The studies from past show that when companies are upgrading from 2G to 3G (UMTS) technology there are three imperative components of capital expenditures or investment costs that are required to be taken into account. These 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。