FIN 486 Week 4

Individual Assignment Capital Budgeting Scenarios

Choose a scenario from the Capital Budgeting Worksheet to review and analyze. Using net present value, determine the proposals appropriateness and economic viability.

Prepare a 500-word report explaining your calculations and conclusions. Answer the following in your report:

Explain the effect of a higher or lower cost of capital on a firms long-term financial decisions.

Analyze the use of capital budgeting techniques in strategic financial management.

Format your report consistent with APA guidelines.

Discussion Questions

How might different stakeholders view the importance of different ratios? Discuss from the perspectives of a stockholder, a vendor, and an employee.

What is EFN? Why is calculating EFN an important role for a CFO? Is it better for a company if it does not need EFN? Why or why not?