Sure AX Wax SC03061X 50001 Cert CAX Giww.do instructure.com/course/b.1960/pagesigruture assignment capital budgeting course project/modulettem id 7710299 TABLE OF CONTENTS VIDUAL project You have recently assumed the role of CFO at your company. The company's CEO is looking to expand its operations by investing in new property plant, and equipment. You are asked to do some capital budgeting analysis that will determine whether the company should invest in these new plant assets ning Signature Assignment Parameters By the end of Wook 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 tim'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 1 OD Signature Assignment Deliverables 9:01 PM 12/7/2020 o 2 $F$1 ng 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 Once again, you may embed your Excel spreadsheets into your document. Be sure to follow APA standards for this project 3/43 Walmart Ine. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended October 31, 2020 2019 Nie Moutha Kaded October 31, 2020 2019 $ 133.752 5 5126911 1010 127.991 1042415 204 107072 179.31 2,974 30,293 134,708 100,339 28,591 5.778 95.900 27.373 4,718 305.054 8957 17,061 20.57 80,140 15.246 Amiwillions, except per share data) Revenue Net sales Membership and other income Teves Cests and expenses: Cost of sales Operating, selling general and administrative expenses Operating Income Interesti 18 Finance lease Interest income Interest het Other and is Income before income taxes Provion for increase Consolidated net income constated income aanbutable to non controlling interest Consolidated net income attributable to Walmart 1.69 254 1.70 45 8 (25) 516 (USB) 2015 1914 S. 201 (66) 5015 547 1.542 249 06) 589 L700 (24) 5.796) 4373 21,157 1.052 540) 3,321 15,714 (33) (113) 1515 1440 1.536 10, (167 10.14 Seloceme per common share Bisne income per common chanabutable to Walman Dated ne income per comme le attributable to Walman 11 HO 1165 11 5515 548 3.75 1.74 2,843 2.13 2819 28 Wedsverage comice shares outstanding HOR Dita 272 5 Divris declarare Sure AX Wax SC03061X 50001 Cert CAX Giww.do instructure.com/course/b.1960/pagesigruture assignment capital budgeting course project/modulettem id 7710299 TABLE OF CONTENTS VIDUAL project You have recently assumed the role of CFO at your company. The company's CEO is looking to expand its operations by investing in new property plant, and equipment. You are asked to do some capital budgeting analysis that will determine whether the company should invest in these new plant assets ning Signature Assignment Parameters By the end of Wook 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 tim'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 1 OD Signature Assignment Deliverables 9:01 PM 12/7/2020 o 2 $F$1 ng 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 Once again, you may embed your Excel spreadsheets into your document. Be sure to follow APA standards for this project 3/43 Walmart Ine. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended October 31, 2020 2019 Nie Moutha Kaded October 31, 2020 2019 $ 133.752 5 5126911 1010 127.991 1042415 204 107072 179.31 2,974 30,293 134,708 100,339 28,591 5.778 95.900 27.373 4,718 305.054 8957 17,061 20.57 80,140 15.246 Amiwillions, except per share data) Revenue Net sales Membership and other income Teves Cests and expenses: Cost of sales Operating, selling general and administrative expenses Operating Income Interesti 18 Finance lease Interest income Interest het Other and is Income before income taxes Provion for increase Consolidated net income constated income aanbutable to non controlling interest Consolidated net income attributable to Walmart 1.69 254 1.70 45 8 (25) 516 (USB) 2015 1914 S. 201 (66) 5015 547 1.542 249 06) 589 L700 (24) 5.796) 4373 21,157 1.052 540) 3,321 15,714 (33) (113) 1515 1440 1.536 10, (167 10.14 Seloceme per common share Bisne income per common chanabutable to Walman Dated ne income per comme le attributable to Walman 11 HO 1165 11 5515 548 3.75 1.74 2,843 2.13 2819 28 Wedsverage comice shares outstanding HOR Dita 272 5 Divris declarare