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®.
· Microsoft® Excel®
· Capital Budgeting Decision Models Template
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.
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.