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Each student should choose an organization with which she/he is familiar, such as the place of employment, business patronized, or other situation and describe how

Each student should choose an organization with which she/he is familiar, such as the place of employment, business patronized, or other situation and describe how that organization either does or does not apply the course concepts on a day-to-day basis. The following course concepts should be discussed:

  • Critical success factors.
  • Identify and discuss the fixed and variable cost.
  • Calculate the Contribution Margin Income Statement
  • Determine and discuss the most effective costing method for your organization.
  • Using the IRR or NPV method calculate and determine if the capital budget project is viable project cost $2million, project life 10 years and cost of capital 15%.
  • Provide a recommendation for the organization

Information needed to complete the capital budgeting portion of the final project:

  • Your company expects to save $450,000 per year for the next 10 years by purchasing the supplier.
  • The cost of capital is 15%.
  • The company believes it's initial investment to be $2 million.

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