Assignment 3: Analyzing Capital Expenditures
Assume that you accept accepted a consummate payment desire for $52,000 for introduce equipment and that you are required to do a exoneration anatomy using consummate budgeting techniques. The company’s consume of consummate is 12% and the equipment (investment) is expected to beget net capital inflows of $13,000 per year for 8 years and then $9,000 for one year.
You are to count and expound your imported calculations of each of the immodest consummate-budgeting techniques listed, then, grounded upon these calculations, transcribe a abridgment that provides a exoneration to receipts or not receipts after a while the plan.
- 1. Count the plan’s net give prize (NPV).
- 2. Count the plan’s inside objurgate of revert (IRR).
- 3. Count the plan’s profitability apostacy.
- 4. Count the plan’s discounted payback age.
- 5. Recommend whether the plan should be accepted or unusual and expound why.
To finished this assignment, comply an Excel polish after a while your term prize calculations, and a two-page brochure that expounds the calculations and provides your recommended judgment and sense of why that judgment is recommended. The brochure must be complyted as a Word muniment and it must supervene APA diction guidelines.