Create your own Capital Budgeting project (see below Your Capital Budgeting Project for further details) Complete a Capital Budget and NPV Analysis. Provide a reason as to your decision to accept or reject the project.

Your Capital Budget MUST be submitted on the attached .xls template. The template does not contain any formulas. You are required to show all formulas in this .xls. FAILURE TO USE THE ATTACHED DOCUMENT WILL RESULT IN AN F1 FOR THE RELEVANT GRADING CRITERIA.

he project that you have created for this task (including ALL assumptions) is to be uploaded to the assignment in Canvas by BY MONDAY WEEK 11, 9.00AM TO BOTH STUDENTS IN THE PAIR. This MUST be completed in the form of a MS Word document and should be about one page in length.

You must ensure there is some discussion captured under your "Pairs Home Page" in Canvas or face grade deductions.

Please ensure student names and numbers are clearly identifiable on both the MS Excel spreadsheet and video.

Failure to upload ANY of these items by the deadline will be considered as Non Submission.

Your Capital Budgeting Project

Using your experience from textbook readings, course materials and any other relevant sources, you are required to create your own Capital Budgeting project.

You must ensure your question captures all facets of a project from the initial purchase of the asset through to the closing off of the project.

All project related assumptions must be clearly shown and correspond with the figures in your .xls.

For example, wages are currently $150,000 per year and will increase to $220,000 per year. The correct incremental cashflow must be clearly identifiable in your .xls and used correctly in your calculations.

Your project must run for 10 years and the Australian company tax rate is to apply. Obviously, the .xls will need to be formatted to cater for your numbers and formulas.

The weighting attached to "Pairs Contribution" must be commented on your .xls.

Demonstrate an understanding of the time value of money, risk and return, the role of cash flow analysis in business decision making and cost of capital Demonstrate a willingness and ability to work collaboratively with peers.

Year Asset Purchase Opportunity Cost rent (After Tax) Opportunity Cost machine (After Tax) Initial advertising cost (After Tax) Change in Working Capital (accounts payable, accounts receivable, stock) Sales Material Costs Lost sales Saved costs Advertising Wages Insurance Before Tax cashflow Less tax After Tax Cashflow Add: Depreciation Tax Saving Sale of asset Proceeds Tax on asset sale Total CashFlow Present Value (at your %) NPV Recommnedation : Partner Contribution Name / Student # Name / Student # 100 Year Asset Purchase Opportunity Cost rent (After Tax) Opportunity Cost machine (After Tax) Initial advertising cost (After Tax) Change in Working Capital (accounts payable, accounts receivable, stock) Sales Material Costs Lost sales Saved costs Advertising Wages Insurance Before Tax cashflow Less tax After Tax Cashflow Add: Depreciation Tax Saving Sale of asset Proceeds Tax on asset sale Total CashFlow Present Value (at your %) NPV Recommnedation : Partner Contribution Name / Student # Name / Student # 100