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Financial decision making for managers
Financial decision making for managers.
see attached doc
Prof Feedback for the Project Financial Decision making for Managers.
On the cost of capital tab, please review and resubmit question 4. On the capital budgeting tab, I will send you hints by email.
Hints are below. Contact me with questions!
Cost of Capital Tab
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- WACC = ((.1901)(.0290)) + ((.8099)(.08))
Notes: For example, 4324/22744=.1901. The .08 is suggested from earlier answers found. Also, (1-tax rate)(.04)=.0290.
Capital Budgeting
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- For reference, Year 0 is -370. There are other values for examples of how to do other years. There are no depreciation values after year 8.
- Use the NPV and IRR formulas in Excel with the cash flows from question 2 (column H in Excel column label). For reference, the NPV should be positive and you will find that the project will be accepted.
- For reference, Year 0 is -370, and other values are somewhat lower generally.
- Use NPV and IRR in Excel.
- Discuss your findings.