Company: Delta Technology Solutions

Managerial Accounting Process: Capital Budgeting

Project	Initial Investment ($ million)	Annual Cash Flows ($ million)	Payback Period (years)	Net Present Value (NPV) ($ million)
Project X	60	25	4	8
Project Y	50	20	3	6
Project Z	70	30	5	10

Requirements:

1. Capital Budgeting Techniques:
   • Calculate the payback period for each project and determine which project Delta Technology Solutions should select based on the payback period criterion.

1. Net Present Value Analysis:
   • Compute the NPV for each project assuming a discount rate of 12% and recommend the most financially beneficial project for Delta Technology Solutions.

1. Internal Rate of Return (IRR):
   • Determine the IRR for Project Z and evaluate whether it meets Delta Technology Solutions' investment criteria.

1. Risk Assessment:
   • Discuss the risk factors associated with investing in Project X compared to Project Y and how these factors impact the decision-making process.

1. Strategic Investment Decision:

Recommend a strategic investment decision for Delta Technology Solutions based on the capital budgeting analysis, considering both financial and non-financial factors.