{"id":216706,"date":"2018-09-15T21:35:41","date_gmt":"2018-09-15T21:35:41","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/15\/fin-419-week-4-capital-budgeting-decision-models\/"},"modified":"2018-10-24T08:48:50","modified_gmt":"2018-10-24T08:48:50","slug":"fin-419-week-4-capital-budgeting-decision-models","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/fin-419-week-4-capital-budgeting-decision-models\/","title":{"rendered":"FIN 419 Week 4 Capital Budgeting Decision Models"},"content":{"rendered":"<p>FIN 419 Week 4 Capital Budgeting Decision Models\tAssignment Steps\u00a0\t\u00a0\tResources: Microsoft\u00ae Excel\u00ae, Capital Budgeting Decision Models Template\u00a0\t\u00a0\tCalculate the following problems using Microsoft\u00ae Excel\u00ae:\t\u00a0\tCalculate the NPV for each project and determine which project should be accepted.\tProject A Project B Project C Project D\tInital Outlay (105,000.000) (99,000.00) (110,000.00) (85,000.00)\tInflow year 1 53,000.00 51,000.00 25,000.00 45,000.00\tInflow year 2 50,000.00 47,000.00 55,000.00 50,000.00\tInflow year 3 48,000.00 41,000.00 15,000.00 30,000.00\tInflow year 4 30,000.00 52,000.00 21,000.00 62,000.00\tInflow year 5 35,000.00 40,000.00 35,000.00 68,000.00\tRate 7% 10% 13% 18%\tYour 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?\tProject D Project E Project F\tCost 205,000.00 179,000.00 110,000.00\tInflow year 1 53,000.00 51,000.00 25,000.00\tInflow year 2 50,000.00 87,000.00 55,000.00\tInflow year 3 48,000.00 41,000.00 21,000.00\tInflow year 4 30,000.00 52,000.00 9,000.00\tInflow year 5 24,000.00 40,000.00 35,000.00\tUsing market value and book value (separately), find the adjusted WACC, using 30% tax rate.\tComponent Balance Sheet Value Market Value Cost of Capital\tDebt 5,000,000.00 6,850,000.00 8%\tPreferred Stock 4,000,000.00 2,200,00.00 10%\tCommon Stock 2,000,000.00 5,600,000.00 13%<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FIN 419 Week 4 Capital Budgeting Decision Models Assignment Steps\u00a0 \u00a0 Resources: Microsoft\u00ae Excel\u00ae, Capital Budgeting Decision Models Template\u00a0 \u00a0 Calculate the following problems using Microsoft\u00ae Excel\u00ae: \u00a0 Calculate the NPV for each project and determine which project should be <a href=\"https:\/\/www.benedictsol.com\/blogs\/fin-419-week-4-capital-budgeting-decision-models\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216706","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216706"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216706\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}