Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Signature Assire X CYou mix x ruchure.com/courses/61950/pages/signature assignment-capital-budgeting course projectmodule tem id-7715299 + X TABLE OF CONTENTS Shent Parameters 3 By the end of Week

image text in transcribed
image text in transcribed
image text in transcribed
Signature Assire X CYou mix x ruchure.com/courses/61950/pages/signature assignment-capital-budgeting course projectmodule tem id-7715299 + X TABLE OF CONTENTS Shent Parameters 3 By the end of Week 3 - select a company, download the most recent copy of the company's 10 Kreport, and submit your company choice to your professor for approval The parameters for the week 7 project deliverable are as follows . The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet) . The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property plant and equipment's cost The annual EBIT for this new project will be 18% of the project's cost The company will use the straight line method to depreciate this equipment Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate Signature Assignment Deliverables Prepare a narrated PowerPoint presentation that will highlight the following items . Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project . The following capital budgeting results for the project Net present value o Internal rate of return - Discounted payback period Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project * 1913 de 4 D du 9:52 PM 19/12/20 walmart 10 k repor X 3743 O 100% id le 1 Connenscanson er inom (Usandited) Search 'Edit Three Month Fadel October 31, 2010 2019 Nie Menthe End Otober 31, 3070 2019 El Export 5 139.95 SIMS 956 1010 144,708 127.991 425 2834 407.072 2.975 170.223 Adobe Export 100339 28.591 5,778 95.900 27-375 4,716 105,054 84,957 17,061 286017 $0,190 15.24 Convert PDF Files or Becel Online Select PDF File walmart 10 kg mom willineapper heredere RE Net als Membership and the income Totale Cestopese Celess Operati, alline peal and administrative Operating in me Interest: Debt Feels Interest Tere, Other (m) and lose Income before in text Promo fino Casalidated are Consolidated set income structuring Colidated set income attributable to Walmart Netine per common are Become a common sharbatable to Walma Dico come le tout Weighted average shares wat tanding Base 455 85 090 516 (1853) 2,115 1914 3.201 (6) 501 517 86 (44) 389 246) 075 1,052 3:21 033) Convert to 150 249 000 1,700 05.196 21,157 5,40 15,714 (183) 15 1.893 25+ 14 1.299 (996 1440 Microsoft Word 10. Documentatge English (US) Chi 5 5 2015 150 3.75 5313 1.16 1.15 Conve 132 2,333 2.39 250 2.1 1849 2.72 1 5 2165 2.12 Create, edit Dividends declared per mu share St here to search O dobe Acrobat Reader DC Help 10 k repor X 75% 5 / 43 Zoom in (Ctrl-Plus) Code Oct 1 Jay 2015 Or1 29 K ASSETS Ch olatian 51.546 HUSS 9.4655 1606 5.770 03345.612 5110 1602140 T. 61 16 67.912 Tom 104136 160 4155 . 1020 105. 1712 17/04 4411 30336 3,073 217 16 20 M3 16055 30716 Gil 15771 210130 Twi LABEL TIES AND EQUITY Curre Samb ESTES 1.5 34995 575 1996 6971 40.750 1507 23 20973 2007 5.100 4003 1293 1.140 188 3714 Die Acum Acous Lowony Opening the wine Paar 4359 5.14 115 7700 Logo 10:34 1590 4750 www. 3,714 16.171 4301 0.91 44912 15,741 4066 13.011 Den 201 JAS US Camins R nallater Tele Nicol (14616 11,1 3.30 3.043 2005 73569 6.00 135) 176.055 24 3.091 10.456 (121 71.549 0.00 28.02 230110 TOGICE SVTOSE O CO Signature Assire X CYou mix x ruchure.com/courses/61950/pages/signature assignment-capital-budgeting course projectmodule tem id-7715299 + X TABLE OF CONTENTS Shent Parameters 3 By the end of Week 3 - select a company, download the most recent copy of the company's 10 Kreport, and submit your company choice to your professor for approval The parameters for the week 7 project deliverable are as follows . The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet) . The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property plant and equipment's cost The annual EBIT for this new project will be 18% of the project's cost The company will use the straight line method to depreciate this equipment Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate Signature Assignment Deliverables Prepare a narrated PowerPoint presentation that will highlight the following items . Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project . The following capital budgeting results for the project Net present value o Internal rate of return - Discounted payback period Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project * 1913 de 4 D du 9:52 PM 19/12/20 walmart 10 k repor X 3743 O 100% id le 1 Connenscanson er inom (Usandited) Search 'Edit Three Month Fadel October 31, 2010 2019 Nie Menthe End Otober 31, 3070 2019 El Export 5 139.95 SIMS 956 1010 144,708 127.991 425 2834 407.072 2.975 170.223 Adobe Export 100339 28.591 5,778 95.900 27-375 4,716 105,054 84,957 17,061 286017 $0,190 15.24 Convert PDF Files or Becel Online Select PDF File walmart 10 kg mom willineapper heredere RE Net als Membership and the income Totale Cestopese Celess Operati, alline peal and administrative Operating in me Interest: Debt Feels Interest Tere, Other (m) and lose Income before in text Promo fino Casalidated are Consolidated set income structuring Colidated set income attributable to Walmart Netine per common are Become a common sharbatable to Walma Dico come le tout Weighted average shares wat tanding Base 455 85 090 516 (1853) 2,115 1914 3.201 (6) 501 517 86 (44) 389 246) 075 1,052 3:21 033) Convert to 150 249 000 1,700 05.196 21,157 5,40 15,714 (183) 15 1.893 25+ 14 1.299 (996 1440 Microsoft Word 10. Documentatge English (US) Chi 5 5 2015 150 3.75 5313 1.16 1.15 Conve 132 2,333 2.39 250 2.1 1849 2.72 1 5 2165 2.12 Create, edit Dividends declared per mu share St here to search O dobe Acrobat Reader DC Help 10 k repor X 75% 5 / 43 Zoom in (Ctrl-Plus) Code Oct 1 Jay 2015 Or1 29 K ASSETS Ch olatian 51.546 HUSS 9.4655 1606 5.770 03345.612 5110 1602140 T. 61 16 67.912 Tom 104136 160 4155 . 1020 105. 1712 17/04 4411 30336 3,073 217 16 20 M3 16055 30716 Gil 15771 210130 Twi LABEL TIES AND EQUITY Curre Samb ESTES 1.5 34995 575 1996 6971 40.750 1507 23 20973 2007 5.100 4003 1293 1.140 188 3714 Die Acum Acous Lowony Opening the wine Paar 4359 5.14 115 7700 Logo 10:34 1590 4750 www. 3,714 16.171 4301 0.91 44912 15,741 4066 13.011 Den 201 JAS US Camins R nallater Tele Nicol (14616 11,1 3.30 3.043 2005 73569 6.00 135) 176.055 24 3.091 10.456 (121 71.549 0.00 28.02 230110 TOGICE SVTOSE O CO

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_2

Step: 3

blur-text-image_3

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

Information Quality Assurance And Internal Control For Management Decision Making

Authors: William R Kinney

1st Edition

0256221618, 9780256221619

More Books

Students also viewed these Finance questions