Continuing in your role as the Chief Financial Officer (CFO) of Anycorp Inc., as you now have a well fashioned discount rate (i.e. WACC), you're interested in arriving at one or more quantitative measures for the resulting value of acquiring Initech. To do this, you plan to use one or more Capital Budgeting Techniques such as the: Payback Period Method Discounted Payback Period Method

Net Present Value

Internal Rate of Return

Equivalent Annual Annuity

and so on...

Based on your readings from Chapter 10 and 11, prepare an Executive Summary that creates a taxonomy of the various Capital Budgeting Techniques so that you can recommend two of the best for use in assessing the net benefits of the merger. Potential comparative features could be:

Pros

Cons

Assumptions Used

Limitations & Weaknesses

This question should be answered in 7 sections:

- Question at Hand

- Information Given

- Assumptions

- Concepts

- Calculations

- Interpretation

-Implications & Consequences