Capital budgeting is utilized to determine if a project is worthwhile
Capital budgeting is utilized to determine if a project is worthwhile
Capital budgeting is utilized to determine if a project is worthwhile. The net present value (NPV), payback period, and internal rate of return (IRR) methods are used to rank and select which project to undertake. The following video outlines the NPV and IRR method of capital budgeting:
https://www.youtube.com/watch?v=HFFkFMfotT0
In this assignment, you are required to prepare a PowerPoint presentation reviewing 3 projects. You will calculate the NPV, IRR, and payback period for each project. Utilizing the capital budgeting calculations, you will need to select the best investment for the company. These calculations will be based on the following scenario:
AIU Industries has 3 potential projects to consider, all with an initial cost of $1,250,000. The company prefers to reject any project with a 4-year cut-off period for recapturing initial cash outflow. Given the cost of capital rates and the future cash flow for each project, determine which project the company should accept.
Cash Flow
Project A
Project I
Project U
Year 1 250,000 450,000 250,000
Year 2 250,000 450,000 400,000
Year 3 250,000 450,000 600,000
Year 4 250,000 450,000 800,000
Year 5 400,000 400,000 200,000
Year 6 400,000 400,000 800,000
Year 7 400,000 400,000 600,000
Year 8 400,000 400,000 200,000
Cost of Capital
4%
6%
8%
Please submit your assignment.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title slide: Remember the running head. The title should be in all capitals.
Length: 15 slides minimum
Body slides: This begins on the slide following the title slide and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your presentation for this assignment is 15 slides. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference slide: References that align with your in-body academic sources are listed on the final slide of your presentation. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference slide is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Answer preview to Capital budgeting is utilized to determine if a project is worthwhile
14 slides
Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below
The post Capital budgeting is utilized to determine if a project is worthwhile appeared first on yourhomeworksolutions.com.
-
- Assignment status: Resolved by our Writing Team
Comments
Post a Comment