Question
Sorry for the last minute request. Juggling 3 jobs and grad school. I need help with the following assignment. If i can hopefully get this
Sorry for the last minute request. Juggling 3 jobs and grad school. I need help with the following assignment. If i can hopefully get this before 3 am EST time (07/25/16) that would be awesome.
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Through this exercise, you will analyze and evaluate the various financial methods for evaluating capital projects as well as communicate the recommendations to the organization's board of directors and provide direction as to the course of action the board should pursue.
The communication of the recommendation to the board of directors is critical to provide the opportunity to explain the basis for the recommendation as well as the rationale as to why this recommendation represents the appropriate course of action for the board. This culminates the capital budget process and generates the decision-making that supports the recommendation.
Review your answers to problem 14.6. Write a brief memo to the board of directors for Big Sky Health Systems Inc. explaining the results of your calculations regarding the new service. Is the new service financially viable? What recommendations would you make to the board regarding this service? Would the recommendation be the same if there was an opportunity cost involved of $15,000 (total) in today's dollars obtained by renting the space involved in the new service to an outside entity for 3 years? Why or why not?
Your memo should be no more than 250 words in length. You should reference appropriate supporting documentation, such as calculations from your other assignment, but you need not reproduce the calculations in their entirety.
All sources, including course materials, must be cited in text in APA style.Remember that course materials need not be included in your references page, but all other references must be."
I've attached problem 14.6 as an excel. It has already been computed. Thank in advance!!
Assignment 4.1: Week Four Review, Part 2 14.5 Year Project X cumulative Project Y cumulative 0 -10000 -10000 -10000 -10000 1 6500 -3500 3000 -7000 2 3000 -500 3000 -4000 3 3000 2500 3000 -1000 4 1000 3500 3000 2000 Project X Payback Period. NPV Project Y 2.17 3.33 $ 966.01 $ (887.95) IRR 18% 8% With the NPV of project Y being negative, it is not deemed favorable. The resulting NPV, IRR, and Payback Period are all positive for Project X making it the better option 14.6 Expected Net Cash Flow ($100) 70 50 20 Year 0 1 2 3 A. 1.6 The PPP is 1.6 yr B. Year Cash Flow PV at 10% 0 ($100) $ (100.00) 1 70 $ 63.64 2 50 $ 41.32 3 20 $ 15.03 NPV= $ 19.98 Year 0 1 2 3 IRR Cash Flow ($100) 70 50 20 23.56% Year Cash Flow 1 FV at 10% 70 $ 84.70 2 3 FV FV is $ PV (initial n is MIRR 50 $ 20 $ $ 159.70 100 3 16.89% 55.00 20.00 159.70Step by Step Solution
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