Please answer the question ABOVE by using the following post BELOW.
Hello Class: Very good guys! Smaller capital projects require the least amount of details because there are fewer items to track. Class, in what sense is a reinvestment rate assumption embodied in the NPV, IRR, and MIRR methods? Give examples Then review the second posting of another student and calculate the NPV and IRR of the project. Based on your workings and assumptions, indicate whether you would accept the project, explaining why. Use the excel sheet. Remember to always share your references and use your own words. Capital budgeting is the process of determining long-term asset investment choices. It is the process of determining whether or not to invest in a particular project since not all investment opportunities are profitable. Thus, the management must choose a project that generates a higher rate of return than the cost of funding it. That is why it must weigh the costs and benefits of a project. For example, a company like Dunkin Donuts may have ten investment prospects for different coffee shops. If each location needs a $ 1.5 million investment and Dunkin Donuts has $ 3 million to contribute, it must pick the two best locations. Choosing the best Dunkin donuts stocks to invest in to increase shareholder wealth must be considered. Projects must maximize shareholder value; quantitative measurements such as net present value (NPV) and internal rate of return (IRR) may be used to analyze project prospects and options. Dunkin donuts would select the two locations with the greatest NPV in this scenario. Hello Class: Very good guys! Smaller capital projects require the least amount of details because there are fewer items to track. Class, in what sense is a reinvestment rate assumption embodied in the NPV, IRR, and MIRR methods? Give examples Then review the second posting of another student and calculate the NPV and IRR of the project. Based on your workings and assumptions, indicate whether you would accept the project, explaining why. Use the excel sheet. Remember to always share your references and use your own words. Capital budgeting is the process of determining long-term asset investment choices. It is the process of determining whether or not to invest in a particular project since not all investment opportunities are profitable. Thus, the management must choose a project that generates a higher rate of return than the cost of funding it. That is why it must weigh the costs and benefits of a project. For example, a company like Dunkin Donuts may have ten investment prospects for different coffee shops. If each location needs a $ 1.5 million investment and Dunkin Donuts has $ 3 million to contribute, it must pick the two best locations. Choosing the best Dunkin donuts stocks to invest in to increase shareholder wealth must be considered. Projects must maximize shareholder value; quantitative measurements such as net present value (NPV) and internal rate of return (IRR) may be used to analyze project prospects and options. Dunkin donuts would select the two locations with the greatest NPV in this scenario
