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Week 4 Capital Budgeting Investment, Model and Analysis (Rev. July 15, 2016) Capital Budgeting Investment, Model, and Analysis Use the company that was selected for the class assignments. This assignment involves development of an Excel-based capital budgeting model and an analysis of a proposed capital budgeting project. Prepare Capital Budgeting Model and Analysis Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. You may find some information about proposed capital budgeting projects in the Form 10K, news releases, or other company information sources. More than likely, it will be necessary to estimate the cash flows associated with the project. Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). The Excel spreadsheet that you develop must use Excel's automated financial functions for determining the NPV, IRR, MIRR, and PI. Following the completion of the spreadsheet analysis, explain whether, or not, the project should be implemented and why? Also, discuss what the various indicators (i.e., NPV, IRR, MIRR and PI) mean? For this assignment, it is necessary to design and develop your own Excel spreadsheet; it needs to be submitted. Beyond the traditional inputs, outputs, and assessment criteria, what new and interesting features can you incorporate into the model? The analysis needs to include: 1. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. 2. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. 3. Explanation and Interpretation of Capital Budgeting Criteria - Prepare a written analysis of the results including NPV,IRR, MIRR, PI, and Profitability Analysis. 1 4. Recommendation About Implementation of Capital Budgeting Project - Develop and defend a recommendation about whether the proposed project should be implemented or not. Writing Instructions The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be submitted limited to four separate attachments in an appendix after the written portion of the paper. The paper should begin with a short introduction and then proceed to examine the four topics outlined in the previous section. The subheadings used in the paper should be: 1. Introduction 2. Description of Proposed Capital Budgeting Project 3. Explanation of the Excel Capital Budgeting Model 4. Explanation and Interpretation of Capital Budgeting Criteria 5. Recommendation About Implementation of Capital Budgeting Project Evaluation: 12.5% of final course grade. Completeness of analysis: The analysis must demonstrate a solid understanding of capital budgeting and the analysis of corporate investments. All assumptions used in preparing the projections for the project need to be thoroughly explained. Organization: The paper should be well-organized and follow a logical pattern of analysis and discussion. Presentation: Papers should meet professional business standards and meet APA formatting requirements. Spelling, punctuation, and grammar: There should be few errors in grammar and punctuation. All sentences must be complete and well-structured. Submission and Format: The completed paper is to be submitted to the \"Gradebook\" location designated for the assignment. The paper must be in Word format otherwise no credit is earned for the assignment. The Excel capital budgeting model is to be submitted. The paper is also to be submitted to the Online Classroom. This will allow students to examine and discuss the various projects. 2 3 4 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. Distinctive and very thorough presentation of this first section. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Distinctive explanation of the Satisfactory Superior design, explanation of the explanation of the construction, and design, design, operation of the construction, and construction, and capital budgeting operation of the operation of the model. The model capital budgeting capital budgeting has some useful model. model. and perhaps special features. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. Passing effort to offer a Virtually no effort 5. Recommendation About recommendation to develop a Implementation of Capital Budgeting based on the recommendation Project - Develop and defend a capital budgeting based on the recommendation about whether the criteria. May be analytical data; or, proposed project should be some errors and/or section not implemented or not. inconsistencies in completed. the recommendation. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing written presentation; may have major weaknesses. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Distinctive and comprehensive Satisfactory effort Superior and effort to offer an to offer a reasonably appropriate recommendation comprehensive recommendation about the capital effort to offer an about the capital budgeting project. appropriate budgeting project. May be some recommendation The analysis is minor errors or about the capital careful, inconsistencies. budgeting project. comprehensive, and consistent. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. Distinctively written presentation with no obvious weaknesses. AND ANALYSIS Input Grade Points Weight Score A+ 98 15.00% 14.70 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. Distinctive and very thorough presentation of this first section. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Distinctive explanation of the Satisfactory Superior design, explanation of the explanation of the construction, and design, design, operation of the construction, and construction, and capital budgeting operation of the operation of the model. The model capital budgeting capital budgeting has some useful model. model. and perhaps special features. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. Passing effort to offer a Virtually no effort 5. Recommendation About recommendation to develop a Implementation of Capital Budgeting based on the recommendation Project - Develop and defend a capital budgeting based on the recommendation about whether the criteria. May be analytical data; or, proposed project should be some errors and/or section not implemented or not. inconsistencies in completed. the recommendation. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing written presentation; may have major weaknesses. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 Distinctive and comprehensive Satisfactory effort Superior and effort to offer an to offer a reasonably appropriate recommendation comprehensive recommendation about the capital effort to offer an about the capital budgeting project. appropriate budgeting project. May be some recommendation The analysis is minor errors or about the capital careful, inconsistencies. budgeting project. comprehensive, and consistent. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. Distinctively written presentation with no obvious weaknesses. A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 , AND ANALYSIS Input Grade Points Weight Score A+ 98 15.00% 14.70 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Satisfactory explanation of the design, construction, and operation of the capital budgeting model. Superior explanation of the design, construction, and operation of the capital budgeting model. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Virtually no effort 5. Recommendation About to develop a Implementation of Capital Budgeting recommendation Project - Develop and defend a based on the recommendation about whether the analytical data; or, proposed project should be section not implemented or not. completed. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing effort to offer a recommendation based on the capital budgeting criteria. May be some errors and/or inconsistencies in the recommendation. Satisfactory effort to offer a recommendation about the capital budgeting project. May be some minor errors or inconsistencies. Passing written presentation; may have major weaknesses. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Superior and reasonably comprehensive effort to offer an appropriate recommendation about the capital budgeting project. BUDGETING, AND ANALYSIS Work of Distinction A-, A, A+ Input Grade Points Weight Score Distinctive and very thorough presentation of this first section. A+ 98 15.00% 14.70 Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. A+ 98 17.00% 16.66 Distinctive explanation of the design, construction, and operation of the capital budgeting model. The model has some useful and perhaps special features. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to offer an appropriate recommendation about the capital budgeting project. The analysis is careful, comprehensive, and consistent. A+ 98 17.00% 16.66 Distinctively written presentation with no obvious weaknesses. A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Satisfactory explanation of the design, construction, and operation of the capital budgeting model. Superior explanation of the design, construction, and operation of the capital budgeting model. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Virtually no effort 5. Recommendation About to develop a Implementation of Capital Budgeting recommendation Project - Develop and defend a based on the recommendation about whether the analytical data; or, proposed project should be section not implemented or not. completed. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing effort to offer a recommendation based on the capital budgeting criteria. May be some errors and/or inconsistencies in the recommendation. Satisfactory effort to offer a recommendation about the capital budgeting project. May be some minor errors or inconsistencies. Passing written presentation; may have major weaknesses. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Superior and reasonably comprehensive effort to offer an appropriate recommendation about the capital budgeting project. BUDGETING, AND ANALYSIS Work of Distinction A-, A, A+ Input Grade Points Weight Score Distinctive and very thorough presentation of this first section. A+ 98 15.00% 14.70 Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. A+ 98 17.00% 16.66 Distinctive explanation of the design, construction, and operation of the capital budgeting model. The model has some useful and perhaps special features. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to offer an appropriate recommendation about the capital budgeting project. The analysis is careful, comprehensive, and consistent. A+ 98 17.00% 16.66 Distinctively written presentation with no obvious weaknesses. A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Satisfactory explanation of the design, construction, and operation of the capital budgeting model. Superior explanation of the design, construction, and operation of the capital budgeting model. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Virtually no effort 5. Recommendation About to develop a Implementation of Capital Budgeting recommendation Project - Develop and defend a based on the recommendation about whether the analytical data; or, proposed project should be section not implemented or not. completed. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing effort to offer a recommendation based on the capital budgeting criteria. May be some errors and/or inconsistencies in the recommendation. Satisfactory effort to offer a recommendation about the capital budgeting project. May be some minor errors or inconsistencies. Passing written presentation; may have major weaknesses. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Superior and reasonably comprehensive effort to offer an appropriate recommendation about the capital budgeting project. BUDGETING, AND ANALYSIS Work of Distinction A-, A, A+ Input Grade Points Weight Score Distinctive and very thorough presentation of this first section. A+ 98 15.00% 14.70 Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. A+ 98 17.00% 16.66 Distinctive explanation of the design, construction, and operation of the capital budgeting model. The model has some useful and perhaps special features. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to offer an appropriate recommendation about the capital budgeting project. The analysis is careful, comprehensive, and consistent. A+ 98 17.00% 16.66 Distinctively written presentation with no obvious weaknesses. A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Satisfactory explanation of the design, construction, and operation of the capital budgeting model. Superior explanation of the design, construction, and operation of the capital budgeting model. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Virtually no effort 5. Recommendation About to develop a Implementation of Capital Budgeting recommendation Project - Develop and defend a based on the recommendation about whether the analytical data; or, proposed project should be section not implemented or not. completed. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing effort to offer a recommendation based on the capital budgeting criteria. May be some errors and/or inconsistencies in the recommendation. Satisfactory effort to offer a recommendation about the capital budgeting project. May be some minor errors or inconsistencies. Passing written presentation; may have major weaknesses. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Superior and reasonably comprehensive effort to offer an appropriate recommendation about the capital budgeting project. BUDGETING, AND ANALYSIS Work of Distinction A-, A, A+ Input Grade Points Weight Score Distinctive and very thorough presentation of this first section. A+ 98 15.00% 14.70 Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. A+ 98 17.00% 16.66 Distinctive explanation of the design, construction, and operation of the capital budgeting model. The model has some useful and perhaps special features. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to offer an appropriate recommendation about the capital budgeting project. The analysis is careful, comprehensive, and consistent. A+ 98 17.00% 16.66 Distinctively written presentation with no obvious weaknesses. A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Satisfactory explanation of the design, construction, and operation of the capital budgeting model. Superior explanation of the design, construction, and operation of the capital budgeting model. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Virtually no effort 5. Recommendation About to develop a Implementation of Capital Budgeting recommendation Project - Develop and defend a based on the recommendation about whether the analytical data; or, proposed project should be section not implemented or not. completed. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing effort to offer a recommendation based on the capital budgeting criteria. May be some errors and/or inconsistencies in the recommendation. Satisfactory effort to offer a recommendation about the capital budgeting project. May be some minor errors or inconsistencies. Passing written presentation; may have major weaknesses. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Superior and reasonably comprehensive effort to offer an appropriate recommendation about the capital budgeting project. BUDGETING, AND ANALYSIS Work of Distinction A-, A, A+ Input Grade Points Weight Score Distinctive and very thorough presentation of this first section. A+ 98 15.00% 14.70 Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. A+ 98 17.00% 16.66 Distinctive explanation of the design, construction, and operation of the capital budgeting model. The model has some useful and perhaps special features. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to offer an appropriate recommendation about the capital budgeting project. The analysis is careful, comprehensive, and consistent. A+ 98 17.00% 16.66 Distinctively written presentation with no obvious weaknesses. A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. Distinctive and very thorough presentation of this first section. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Distinctive explanation of the Satisfactory Superior design, explanation of the explanation of the construction, and design, design, operation of the construction, and construction, and capital budgeting operation of the operation of the model. The model capital budgeting capital budgeting has some useful model. model. and perhaps special features. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. Passing effort to offer a Virtually no effort 5. Recommendation About recommendation to develop a Implementation of Capital Budgeting based on the recommendation Project - Develop and defend a capital budgeting based on the recommendation about whether the criteria. May be analytical data; or, proposed project should be some errors and/or section not implemented or not. inconsistencies in completed. the recommendation. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing written presentation; may have major weaknesses. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Distinctive and comprehensive Satisfactory effort Superior and effort to offer an to offer a reasonably appropriate recommendation comprehensive recommendation about the capital effort to offer an about the capital budgeting project. appropriate budgeting project. May be some recommendation The analysis is minor errors or about the capital careful, inconsistencies. budgeting project. comprehensive, and consistent. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. Distinctively written presentation with no obvious weaknesses. AND ANALYSIS Input Grade Points Weight Score A+ 98 15.00% 14.70 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. Distinctive and very thorough presentation of this first section. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Distinctive explanation of the Satisfactory Superior design, explanation of the explanation of the construction, and design, design, operation of the construction, and construction, and capital budgeting operation of the operation of the model. The model capital budgeting capital budgeting has some useful model. model. and perhaps special features. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. Passing effort to offer a Virtually no effort 5. Recommendation About recommendation to develop a Implementation of Capital Budgeting based on the recommendation Project - Develop and defend a capital budgeting based on the recommendation about whether the criteria. May be analytical data; or, proposed project should be some errors and/or section not implemented or not. inconsistencies in completed. the recommendation. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing written presentation; may have major weaknesses. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Distinctive and comprehensive Satisfactory effort Superior and effort to offer an to offer a reasonably appropriate recommendation comprehensive recommendation about the capital effort to offer an about the capital budgeting project. appropriate budgeting project. May be some recommendation The analysis is minor errors or about the capital careful, inconsistencies. budgeting project. comprehensive, and consistent. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. Distinctively written presentation with no obvious weaknesses. AND ANALYSIS Input Grade Points Weight Score A+ 98 15.00% 14.70 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain the results criteria. May be a written analysis of the results of the analysis; or, some errors or including NPV,IRR, MIRR, and PI. section not inconsistencies completed. with the explanation and interpretation of the results. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Satisfactory explanation of the design, construction, and operation of the capital budgeting model. Superior explanation of the design, construction, and operation of the capital budgeting model. Satisfactory effort to examine the results of the analysis using the capital budgeting criteria. May be some minor errors or inconsistencies. Superior and reasonably comprehensive effort to explain and interpret the capital budgeting criteria for the project. Virtually no effort 5. Recommendation About to develop a Implementation of Capital Budgeting recommendation Project - Develop and defend a based on the recommendation about whether the analytical data; or, proposed project should be section not implemented or not. completed. 6. Writing, Grammar, Spelling, & Presentation - Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report. Avoidance of Personal Pronouns; Avoidance of Referring to Company as They, Their, or Them; etc. Appropriate use of reference citations. Paper is poorly written and presented; not worthy of a passing evaluation. May have failed to use appropriate subheadings for the assignment. Passing effort to offer a recommendation based on the capital budgeting criteria. May be some errors and/or inconsistencies in the recommendation. Satisfactory effort to offer a recommendation about the capital budgeting project. May be some minor errors or inconsistencies. Passing written presentation; may have major weaknesses. Superior written Satisfactorily presentation with written very limited minor presentation with weaknesses, some weaknesses. omissions, etc. 15. Individualized Comments About Research Paper Scoring Lookup Table A 95 A- 91 A+ 98 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 Superior and reasonably comprehensive effort to offer an appropriate recommendation about the capital budgeting project. BUDGETING, AND ANALYSIS Work of Distinction A-, A, A+ Input Grade Points Weight Score Distinctive and very thorough presentation of this first section. A+ 98 15.00% 14.70 Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. A+ 98 17.00% 16.66 Distinctive explanation of the design, construction, and operation of the capital budgeting model. The model has some useful and perhaps special features. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to explain and interpret the capital budgeting criteria for the project. The analysis is careful, comprehensive, detailed, and consistent. A+ 98 17.00% 16.66 Distinctive and comprehensive effort to offer an appropriate recommendation about the capital budgeting project. The analysis is careful, comprehensive, and consistent. A+ 98 17.00% 16.66 Distinctively written presentation with no obvious weaknesses. A+ 98 17.00% 16.66 Total 100.00% Grade on Paper 98.0000 Points 12.25 GRADING RUBRIC FOR CAPITAL INVESTING, BUDGETING, AND ANALYSIS Student: Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets Superior Work and essential clearly above requirements average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Category Required Topics 1. Introduction - Provide a brief overview of the assignment and include a preview of the contents of the report. Superior Introduction is not Only a superficial Satisfactory presentation of the presented or effort to develop presentation of the introduction and undeserving of the introduction. introduction. clearly above credit. average. Distinctive and very thorough presentation of this first section. 2. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. Marginally passing development and presentation of the Virtually no effort description of the to explain the capital budgeting capital budgeting project. May be project; or, section some significant not completed. weaknesses in the overall description and related financial data. Superior development and presentation of the Satisfactory description of the development and capital budgeting presentation of the project and its description of the cash flows. The capital budgeting scope of the project and its project is cash flows. understandable and the cash flows seem to be relatively realistic. Distinctive development and presentation of the description of the capital budgeting project and its cash flows. The scope of the project is very understandable and the cash flows are both realistic and understandable. 3. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. Virtually no effort to explain the design, construction, and operation of the capital budgeting model; or, section not completed. Passing explanation of the design, construction, and operation of the capital budgeting model; presentation may be lacking in depth and detail. Passing effort to examine the results of the Virtually no effort analysis using the 4. Explanation and Interpretation of to examine and capital budgeting Capital Budgeting Criteria - Prepare explain