FIN/419 Version 6 Finance for Decision Making Individual Assignment: Capital Budgeting Decision Models Purpose of Assignment The purpose of this assignment is to allow the students to become familiar with and practice the measurement of Net Present Valu

  

FIN/419 Version 6

Finance for Decision Making

Individual Assignment: Capital Budgeting Decision Models

Purpose of Assignment

The purpose of this assignment is to allow the students to become familiar with and practice the measurement of Net Present Value (NPV), payback, and Weighted Average Cost of Capital (WACC) using Microsoft® Excel®.

Resources Required

· Microsoft® Excel®

· Capital Budgeting Decision Models Template

Grading Guide

    

Content

Met

Partially Met

Not Met

Comments:

 

The student calculated the problems using   Microsoft® Excel®.

 

Calculate the NPV for each project and determine which   project should be accepted.

 

Your company is considering   three independent projects. Given the following cash flow information,   calculate the payback period for each. If your company requires a   three-year payback before an investment can be accepted, which project(s)   would be accepted?

 

Using market value and book   value (separately), find the adjusted WACC, using 30% tax rate.

 

Total Available

Total Earned

 

7

#/7

    

Writing Guidelines

Met

Partially Met

Not Met

Comments:

 

The paper—including tables   and graphs, headings, title page, and reference page—is consistent with APA   formatting guidelines and meets course-level requirements.

 

Intellectual property is   recognized with in-text citations and a reference page.

 

Paragraph and sentence   transitions are present, logical, and maintain the flow throughout the paper.

 

Sentences are complete,   clear, and concise.

 

Rules of grammar and usage   are followed including spelling and punctuation.

 

Total Available

Total Earned

 

3

#/3

    

Assignment Total

#

10

#/10

 

Additional comments: