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Need Assistance ASAP!! Attached is the document I need assistance with completing the deliverables. SAMSUNG Once again, your team is the key financial management team
Need Assistance ASAP!!
Attached is the document I need assistance with completing the deliverables.
SAMSUNG Once again, your team is the key financial management team for your company. The company's CEO is now looking to expand its operations by investing in new property, plant, and equipment. Your team recently calculated the WACC for your company, which will now be useful in evaluating the project's effectiveness. You are now asked to do some capital budgeting analysis that will determine whether the company should invest in these new plant assets. The parameters for this project are: Your team will be using the same company for this project that you used in the Week 6 project. The company is now looking to expand its operations and wants you to do some analysis using key capital budgeting tools to do this. The parameters for this project are as follows. The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use the same marginal tax rate that you used in the Week 6 project. The hurdle rate for this project will be the WACC that you calculated in Week 6. Deliverable for this Project Prepare a narrated PowerPoint presentation using VoiceThread or Webex that will highlight the following items. Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project. The following capital budgeting results for the project o Net present value o Internal rate of return o Discounted payback period. Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project Once again, you may embed your Excel spreadsheets into your document. Be sure to follow APA standards for this project. 1 SAMSUNG Grading Rubric Possible Points Calculation of Cost of Project Estimation of Cash Flows Capital Budgeting Analysis Form Criteria and Point Range 0-3 8 12 12 8 4-6 7-9 10-12 All calculations are incorrect, or not presented. Calculation of PP&E, salvage value, or annual depreciation is incorrect. Cost of PP&E is mostly correct with some minor calculation errors. 0-3 All aspects of the cash flow calculation are incorrect, or not presented. 4-6 Significant, but identifiable errors are presented in the calculation to convert income to cash flows.. 0-2 All of the capital budgeting calculations are incorrect, or not presented. 3-4 Two errors noted in the NPV, IRR, and Discounted Payback Period calculations. 7-9 Cash flows are properly converted from accrual-based net income to cash flows from the project, with minor errors. 5-6 One error noted in the NPV, IRR and Discounted payback period calculations. Cost of Property, plant and Equipment and annual depreciation correctly calculated. 10-12 Cash flows are properly converted from accrual-based net income to cash flows from the project. 0-2 Poor writing and presentation skills, or no presentation provided. 3-4 Several problems noted in regard to writing and presentation skills. 5-6 Writing and presentation done well with a few minor errors 2 7-8 All of the NPV, IRR, and Discounted Payback period calculations are correct. 7-8 Virtually no errors in writing or presentationStep by Step Solution
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