Assignment: Capital Budget Project.
Choose either option 1 or 2
Option 1: Explain the Capital Budgeting process used in your work place. Note this option requires either personal account or interview with the appropriate people in your work place. You can contact previous employers if you choose.
• How are cash flows determined
• Who is involved in the process
• What computation is most commonly used (ie IRR, NPV, Payback etc)
• What is the follow up process once a project has been approved? (ie. If a buying a new machine that will save money, is there any validation the savings are realized)
Option 2: Evaluate a major financial decision you have made recently or are considering. (ie buy vs lease car, educational degree, buy vs rent apartment)
• Determine cash flows (include all relevant expenses/costs)
• List and explain assumptions
• Compute IRR, NPV, Payback, Discounted Payback to make decision
• Conclusion: What decision did you make and why?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Cash-Flows.rar