BACKGROUND:

RRWR Inc. (RRWR) is a gold mining company with operations in numerous countries. Currently, RRWR is considering the viability of a new project which involves the mining of gold in the northern region of B.C. You and your team are employed within the finance division of RRWR and have been assigned the task of advising the board of directors regarding this new ambitious project. Many of the directors are considering the expansion as a major growth opportunity.

Question:

a. The Board of Directors of RRWR come from all walks of life and most have minimal finance experience. Present, in one short paragraph for each model, discussion educating the board of directors of RRWR about the various (six) models (from Chapter 9) that are commonly used in industry when making capital budgeting decisions. Incorporate any potential deficiencies and exceptions to the use of the models into your discussion