Question
Provides a thorough and detailed synthesis of the purpose of their report, the results of their financial analysis of the company's short- and long-term capital
Provides a thorough and detailed synthesis of the purpose of their report, the results of their financial analysis of the company's short- and long-term capital budget needs, and their recommendations for how the company can raise money in the short-term and long-term to continue to add value to the organization.
Capital Budgeting Criteria | |||||||||||
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |||
Project A | ($300) | ($387) | ($193) | ($100) | $600 | $600 | $850 | ($180) | |||
Project B | ($405) | ($134) | $134 | $134 | $134 | $134 | $134 | $0 | |||
Difference | ($105) | ($521) | ($327) | ($234) | $466 | $466 | $716 | ($180) | |||
WACC | 11% | WACC | 18% | ||||||||
NPV @ 11% | NPV @ 18% | ||||||||||
Project A | $240.64 | Project A | $2.66 | ||||||||
Project B | ($79.55) | Project B | ($163.44) | ||||||||
IRR @ 11% | |||||||||||
Project A | 18.10% | ||||||||||
Project B | |||||||||||
MIRR @ 11% | MIRR @ 18% | ||||||||||
Project A | 14.59% | Project A | 18.05% | ||||||||
Project B | 16.46% | Project B | 20.49% | ||||||||
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