Guillermo Furniture, a company that manufactures midgrade and high-end sofas, has just hired you as an accountant. The owner, Guillermo Navallez, has assigned you the task of determining which decisions provide the greatest returns.

Read the Guillermo Furniture Scenario and review the Guillermo Furniture Data Sheets on your student Web site. Enter your name in cell A3 of the Income Information tab in the Guillermo Furniture Data Sheets. Submit the exact name you entered to your instructor. Obtain the number that is shown as a result of total assets on the Assets, Liabilities, and Equity In tab. Submit the number for total assets to your instructor. Differentiate among the various capital budget evaluation techniques.

Explain how these different techniques would help you make your recommendation to Guillermo.

Recommend a course of action based on a capital budget evaluation technique and include present value calculations as part of your recommendation.