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Word document professional report that provides an overview of capital budgeting concepts, tools, applications, and your specific capital budgeting analysis, including items noted below. Your

Word document professional report that provides an overview of capital budgeting concepts, tools, applications, and your specific capital budgeting analysis, including items noted below. Your Word report should be of the quality that you would be proud to submit to your Board of Directors or investors (or other clients) regarding your firms capital budgeting processes and your capital budgeting analysis of this particular project. Your materials should NOT refer to the assignment but rather it should address the case as though it is your firms project.

A glossary of capital budgeting concepts and terms (alphabetical) with definitions and comments regarding the implications of the concepts. Provide this in an appendix (at the end), and refer to it within your review of capital budgeting key concepts, processes and applications

At a minimum, the key concepts and terms should include:

ATSV,

Cash flow analysis (time zero initial investment cash flows, operating life cash flows, terminal period end of project cash flows),

cash flow timeline,

conventional cash flow stream, non-conventional cash flow stream,

discount rate & cost of capital concept (and implications to valuation)

independent projects,

IRR - multiple IRRs,

IRR,

mutually exclusive projects,

NPV = 0 meaning and implications,

NPV Profile,

NPV,

opportunity cost,

Payback Period,

profitability index,

ranking conflict of NPV vs. IRR,

sunk cost

What information / insights are your NPV Scenario / Risk Analysis Grids providing to your analysis? Explain why scenario grids such as these are frequently known as What if? Analysis. How can scenario / risk / what if? analysis grids such as these enhance business and financial management decision making and strategy analysis?

image text in transcribed

$33 closest NPW' number to zero for IRP $33 closest NPW' number to zero for IRP

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