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Question: Create a business memo: 1) Analyze and evaluate the investment decision for a company to invest in either corn or algae(biofuels). o Audience: Capital

Question:

Create a business memo:

1) Analyze and evaluate the investment decision for a company to invest in either corn or algae(biofuels). o Audience: Capital Budgeting Committee, . [Note: Capital Budgeting recommends which projects are to be undertaken each year.

2)Your job is to analyze the assigned project and provide decision support by presenting your evaluation and recommendation to the committee for either corn or algae.] o Assume your audience (your supervisor and colleagues) are knowledgeable with respect to project evaluation techniques. For example, state you performed a rate of return analysis, but do not explain what a rate of return analysis is. Assume they know. o Assume your audience is mostly unfamiliar with the project and needs the basic background to be summarized. Use two decision criteria to evaluate the project as follows: Annual Worth and Rate of Return

Annual Worth - AW(corn) $10,842,971.58
Annual Worth - Aw(algae) $10,837,421.59
Rate of Return - IRR(corn) 19%
Rate of Return - IRR(algae) 15%

Question:

Create a business memo:

1) Analyze and evaluate the investment decision for a company to invest in either corn or algae(biofuels). o Audience: Capital Budgeting Committee, . [Note: Capital Budgeting recommends which projects are to be undertaken each year.

2)Your job is to analyze the assigned project and provide decision support by presenting your evaluation and recommendation to the committee for either corn or algae.] o Assume your audience (your supervisor and colleagues) are knowledgeable with respect to project evaluation techniques. For example, state you performed a rate of return analysis, but do not explain what a rate of return analysis is. Assume they know. o Assume your audience is mostly unfamiliar with the project and needs the basic background to be summarized. Use two decision criteria to evaluate the project as follows: Annual Worth and Rate of Return

Annual Worth - AW(corn) $10,842,971.58
Annual Worth - Aw(algae) $10,837,421.59
Rate of Return - IRR(corn) 19%
Rate of Return - IRR(algae) 15%

Business Memo: o Use a Business Memo format. o Suggested Heading (To, From, Subject, Date) TO: Budget Committee, ABC Company FROM: Ferris Buehler, Analyst SUBJECT: Analysis of Automobile Repair Alternatives DATE: Due Date for Assignment o 1-2 pages + attachment o Dont clutter the memo with a bunch of calculations. Instead, indicate what calculations were made (i.e., decision methods used) and state the result and recommendation. o Clearly relegate to an attachment as the last page of same document containing supporting information such as the setup of equations, cash flow summary, and calculation results. Indicate at the bottom of the memo that an Attachment follows. Label the attachment (e.g., Attachment: Assumptions and Supporting Calculations for Auto Repair Analysis). o Review course links and possibly other guides relating to writing effective business memos

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