Capital budgeting process

OVERVIEW Requirements: . | .doc file

Respond to four questions and solve two computational problems about the capital budgeting process. The capital budgeting process is a method used by organizations to evaluate their investment in various projects such as buying new machinery or expanding into a new plant. You will benefit from being able to demonstrate the use of the capital budgeting process including the following techniques and terms:Net present value (NPV) method.Internal rate of return (IRR) method.Modified internal rate of return (MIRR) method.Payback period.Discounted payback period.Profitability index. Net present value (NPV) method. Internal rate of return (IRR) method. Modified internal rate of return (MIRR) method. Payback period. Discounted payback period. Profitability index. RESOURCESSUGGESTED RESOURCESWeaver S. C. & Weston J. F. (2001). Finance and accounting for nonfinancial managers. New York NY: McGraw-Hill.Sherman E. H. (2011). Finance and accounting for nonfinancial managers (3rd ed.). New York NY: American Management Association. Weaver S. C. & Weston J. F. (2001). Finance and accounting for nonfinancial managers. New York NY: McGraw-Hill. Sherman E. H. (2011). Finance and accounting for nonfinancial managers (3rd ed.).

New York NY: American Management Association. ASSESSMENT INSTRUCTIONSRespond to the questions and complete the problems.QUESTIONSIn a Word document respond to the following. Number your responses 1–4.Explain the net present value (NPV) method for determining a capital budgeting projects desirability. What is the acceptance benchmark when using NPV?Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic?Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark when using IRR?Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRRs strengths and weaknesses?Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors demonstrating strong written communication skills.PROBLEMSIn either a Word document or Excel spreadsheet complete the following problems.You may solve the problems algebraically or you may use a financial calculator or an Excel spreadsheet.If you choose to solve the problems algebraically be sure to show your computations.If you use a financial calculator show your input values.If you use an Excel spreadsheet show your input values and formulas.In addition to your solution to each computational problem you must show the supporting work leading to your solution to receive credit for your answer.Based on the cash flows shown in the chart below compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.Project HuronTime 0 1 2 3 4Cash Flow $12000 $2360 $4390 $1520 $3300Based on the cash flows shown in the chart below compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.Project ErieTime 0 1 2 3 4 5Cash Flow $12000 $2360 $4390 $1520 $980 $1250 Explain the net present value (NPV) method for determining a capital budgeting projects desirability. What is the acceptance benchmark when using NPV? Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic? Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark when using IRR? Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRRs strengths and weaknesses? You may solve the problems algebraically or you may use a financial calculator or an Excel spreadsheet. If you choose to solve the problems algebraically be sure to show your computations. If you use a financial calculator show your input values. If you use an Excel spreadsheet show your input values and formulas. Based on the cash flows shown in the chart below compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project. Based on the cash flows shown in the chart below compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project. Explain the net present value (NPV) method for determining a capital budgeting projects desirability. What is the acceptance benchmark when using NPV?Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic?Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark when using IRR?Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRRs strengths and weaknesses? Based on the cash flows shown in the chart below compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.Project HuronTime 0 1 2 3 4Cash Flow $12000 $2360 $4390 $1520 $3300Based on the cash flows shown in the chart below compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.Project ErieTime 0 1 2 3 4 5Cash Flow $12000 $2360 $4390 $1520 $980 $1250

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your paper today and save 30% with the discount code HAPPY

X
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 323 412 5597

Feel free to ask questions, clarifications, or discounts available when placing an order.