Assignment: Financial Management
You will read the case, analyze it and write a report to the owner, John Davidson, to present your recommendation on the business and investment decision. You may consider the following guided questions to prepare your report. If you have made assumption(s) as part of the case analysis, please include them in the report.
I. Using NPV analysis, should Magic Timber and Steel (Magic) purchase the new Delta finishing machine?
II. What other quantitative and/or qualitative factors need to be taken in to consideration for the investment decision?
III. Sensitivity analysis (e.g. different discount rate, different selling price, change in maintenance cost)
IV. What would be your recommendation(s)?
V. You may assume discount rate as 11% and tax rate at 30%.
What are the requirements?
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.