Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Topic: Week 5-Discussion 2x ashford instructure com courses/44240 discuss on topics/1234587?mod. e p a evaluated. es Capital Budgeting Decisions [WLOs: 1,2,3,41ICLOs: 1,2,3,4,5,6 Prior to beginning

image text in transcribed

image text in transcribed

Topic: Week 5-Discussion 2x ashford instructure com courses/44240 discuss on topics/1234587?mod. e p a evaluated. es Capital Budgeting Decisions [WLOs: 1,2,3,41ICLOs: 1,2,3,4,5,6 Prior to beginning work on this discussion, please read the article Capital Investment Appraisal Techniques: A Survey of Current Usage e by Sangster (1993). After setting the company's goals, managers evaluate capital investment projects and decide which should be funded. Suppose a company has four different capital budgeting projects from which to choose but has constrained funds and cannot implement all of the projects. about or prolectsin which XCorporation has The following table cot the opportunity to invest. This information is based on estimates that different managers have prepared about the company's potential project. Net Life oIndex Years Investment present Project Return Period inRate of Value Project Rate of Proftabilitly Payback | 1.17 | 2.97 | 20% | 21% 5 |$36,908| |$ 226,000 A 15% | 2496 6 |$ 50.740| |$406,000 i4% 2.18 c |$1,040000|S152.325| 3 | 19% | 1.16 1.02 | 3.00 |" 23% D s1.630.ooo ls 19870| 4| 14% Part 1: Rank the four projects inorder of preference by using the following table: Topic Week 5-Discussion 2x p e a @ 44240/discusso n topics/12345877mod https://ashford. nstructure.com/course Part 1: Rank the four projects in order of preference by using the following tabler k Average Rate Net Present ProfitabilityRate of ValueIndex Rate of Period of Return Return Project A B C preferred or D 1st 2nd eferred 4th preferred Part 2:Write a response in an initial post of at least 200 words discussing the usefulness of capital investment techniques inet present value, profitability index, internal rate of return, payback period, and average rate of return in selecting the four alternative investment opportunities in part 1. Guided Response: Review several of your peers posts, In a post of at lest 00 words, respond to at least two of your peers posts in asubstantive manner. Provide information that they may have missed or may not have considered about the strengths and weaknesses of the capital budgeting techniques including a comparison between techniques based on the time value of money versus those that are not, Do you agree with your peers findings? Why or why not

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

5th Edition

0471542830, 9780471542834

More Books

Students also viewed these Accounting questions