Corporate Finance capital budgeting evaluation project

– Recommended report size: 5 pages (excluding the cover page, the bibliography section and attachments)

– Structure, format and style: flexible

Don't use plagiarized sources. Get Your Custom Essay on
Corporate Finance capital budgeting evaluation project
Just from $13/Page
Order Essay

What you need to do is evaluate a real-life investment project currently being planned by one of the well-known international companies. You should utilize the newly acquired knowledge concerning capital budgeting and project evaluation when working on your approach and calculations. The ultimate goal would be to provide an opinion concerning the investment project’s attractiveness in terms of “accept” or “reject” the project. Both possible conclusions would be considered equally superior; it is not necessary to validate the project just because the company in question has done so.
Below are the sequential steps you are advised to follow:
1) Select a well-known international company (ideally, a public corporation)

2) Find an actual investment project your company is currently undertaking or is planning to undertake in the recent future.
3) Collect as much information as possible concerning the project you have identified through the company website, business and financial media (www.bloomberg.com, www.wsj.com, www.financialtimes.com, www.economist.com, etc.) and compile the project description section of your report (with major numbers only, concerning the initial investment, project duration, etc.)
4) Classify the chosen project (a multiple classification may be relevant) and describe its benefits for the company, the society and the environment.
5) Estimate the project’s discount rate as the weighted average cost of capital WACC of the company (my suggestion would be www.finance.yahoo.com). In order to calculate the after-tax cost of debt, be sure to find the following components:
a) company’s before-tax cost of debt (from knowing the company’s interest expense during the last fiscal year found in the income statement and the company’s total liability from the same year found in the balance sheet).

b) company’s tax rate, which could be indirectly calculated by dividing the income tax expense by the income before tax (EBT)
In order to calculate the cost of equity, be sure to use the CAPM model. Find the following components concerning the CAPM equation from the Internet:
a) the corresponding risk-free rate;

b) the expected rate of return on the stock market (or the market risk premium)

c) company “beta”
6) Estimate the project’s cash flows. Follow the cash-flow estimation template presented in Session 6 videos. Please note that you are allowed to make up the data pertaining to your project that you will not be able to find through research (please do your best to be reasonable concerning the assumptions). The most critical piece of information would be the first-year revenues, so do your best to come up with a reasonable number. From then on assume a steady revenue growth throughout the duration of the project (same growth rate), a straight-line depreciation method. In addition, in the absence of a better estimate, you may assume that the cost and expenses (excluding depreciation) would be equal to 50% of the expected revenues in each year. As for the project’s economic (useful) life, in the absence of relevant data, use your best judgement.
7) Once you have the project’s cash flows and the discount rate in place, use the following investment decision rules to make the decision concerning the project’s attractiveness to the company:
a) Discounted Payback Period
b) NPV
c) PI
d) MIRR
It would be a good way to end the report with the conclusion section summarizing your findings and recommendations concerning the project.

Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

ACME Homework provides the best top-grade academic writing services in compliance with our customers’ instructions. Have your paper written by a certified professional online college homework help writer to produce only high-quality essays with zero plagiarism.

Professional Academic Writers

You can now choose from a pool of online college homework help writers. Choose your writer and have them write the best content for you. ACME Homework has, over the years, secured a team of the most reliable, experienced, and qualified writers. You can, therefore, trust that your assignment is in good hands.

Affordable Prices

We know that students have very limited budgets. And for that, we always strive to provide only the best, most affordable online college homework help services to our customers. Our goal is to provide top-quality assignment help services to all customers at the lowest, most affordable prices.

On-Time delivery

At Acmehomework.com, we pay strict attention to deadlines. We recommend you to check out clients’ reviews for assurance that we will complete your assignments within the set deadlines. You can, therefore, trust that your paper will be done within and before the set deadline. Until now, we have not missed a single deadline.

100% Originality

Our Acmehomework.com homework helper experts write only 100% original and plagiarism-free content for all of our clients. We also have a Quality Assurance Department team that goes through all work submitted by our writers multiple times. You can, therefore, rest assured that any signs of plagiarized or unoriginal content will be rejected before it reaches your portal.

Customer Support 24/7

Acmehomework.com expert writers are always available 24/7 for customers who need assistance with using our website. You don’t have to check your watch the next time you want to have your assignment written. Our customer support is always available round the clock and ready to listen to your queries. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

For years now, Acmehomework.com has stood as a leader in providing its customers with the best online college homework help service in the industry. And all you have to do is provide us with the details of your order. Leave everything else to us. We’ve always got you covered.

Essays

Essay Writing Services

Since we launched, Acmehomework.com deserved the best online “college homework help status” thanks to our essay ordering, writing, and delivery process. We deliver nothing but excellence in our results. Our essay writing services include impeccable grammar, zero-plagiarism, proper structure, and conformance to guidelines.

Admissions

Admission and Business Papers

Our top-quality online college homework help services guarantee that you will be accepted into your desired university. You just need to fill out your admission and business papers, and our team of online homework help workers will handle the rest. We will help you achieve and secure the best positions in your admissions forms.

Editing

Editing and Proofreading

At Acmehomework.com, we have a skilled writing and editing team that’s dedicated to creating, editing, and restructuring for all types of papers. Our online college homework help editing and proofreading team will check, paraphrase, and correct any grammar mistakes on your paper before submitting the final document to you.

Coursework

Technical Papers

At Acmehomework.com, we pride ourselves in having writers in almost all fields, even the most technical ones. You never have to worry about your paper being too technical for our certified online college homework help writers to handle. ACME Homework’s team of writers can handle even the most complex writers. We will match your paper to the most competent writer that we believe will handle your paper the best way possible.

                                                                                     Place Order