Fundamentals of Finance Assignment-
You work in the Finance division of the Brisbane Manufacturing Company Ltd. The company is in the process of deciding whether or not to purchase a new lathe. Your company's Chief Financial Officer has asked you to prepare a report on this potential project, and to make a recommendation as to whether or not the company should proceed with the project.
Your report should include the following:
1. Calculation of the company's Weighted Average Cost of Capital.
2. Explanation of the circumstances in which it would be appropriate to use the company's WACC as the discount rate in evaluating the project.
3. Calculation of the Net Present Value of the project.
4. Calculation of the Internal Rate of Return of the project.
5. Calculation of the Payback Period of the project.
6. An explanation of which of these methods should be used to evaluate the project.
7. Your recommendation as to whether or not the project should proceed.
Attachment:- Finance Assignment.rar