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Due Week 4: Cost of Capital and Capital Project Ev...




Due Week 4: Cost of Capital and Capital Project Evaluation Evaluate a capital investment using NPV and IRR models. Include a document with your model that functions as a user?s manual ? inputs/outputs required, basic assumptions detailed, explanation of financial principles involved, and references with other information as needed. Model Background: You wish to purchase a new pizza oven for your restaurant but you are not sure that the investment is a good one. The oven cost is $100,000 and the oven will last for 7 years with no residual value at the end of that time. You expect to generate $22,000 income for the first 3 years and $25,000 for the final 4 years. The loan for the oven will be 9% after taxes and you do not have a tax effect on the income generated (in this example). You will be graded as follows: 1. Application(s) of course material in building model 20 points 2. Explanation and definition of financial principles involved 25 points 3. Detailed assumptions that model is built upon and correct calculation of model components 20 points 4. Lessons Learned and Observations from model 35 points,can you resent it, I can open the file,its a rar file, I cant open that up, I need it to be a microsoft word document,are you going to answer me or not


Paper#5622 | Written in 18-Jul-2015

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