BUS 650 Week 5 DQ1 Factors in Capital Budgeting Decisions
A discussion-based assignment solution on factors affecting capital budgeting decisions.
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BUS 650 Week 5 DQ1 Factors in Capital Budgeting Decisions
Imagine you are a representative of management in the company you have selected for your
Week Six assignment and you must make a capital budgeting decision. The decision is to
implement a new computer network system to decrease the time between customer order and
delivery. The cost will be 10% of last year’s profits. You are charged with describing the
important considerations in the decision-making process to upper management. In your
response, be sure to include the following:
A description of the important factors, in addition to quantitative factors, that were
considered when making this capital budgeting decision.
An explanation of how these factors are significant to the company.
A summary of how you will determine the criteria to rank capital budgeting decisions
and whether some criteria are more important than others.
A calculation of the proposed return on investment based on criteria you select and
justification for that ROI.
Develop a 200 – 250 word explanation supporting your recommendations.
Tip: For help with reading an annual report access this handy guide from Moneychimp
(http://www.moneychimp.com/articles/financials/fundamentals.htm)
Imagine you are a representative of management in the company you have selected for your
Week Six assignment and you must make a capital budgeting decision. The decision is to
implement a new computer network system to decrease the time between customer order and
delivery. The cost will be 10% of last year’s profits. You are charged with describing the
important considerations in the decision-making process to upper management. In your
response, be sure to include the following:
A description of the important factors, in addition to quantitative factors, that were
considered when making this capital budgeting decision.
An explanation of how these factors are significant to the company.
A summary of how you will determine the criteria to rank capital budgeting decisions
and whether some criteria are more important than others.
A calculation of the proposed return on investment based on criteria you select and
justification for that ROI.
Develop a 200 – 250 word explanation supporting your recommendations.
Tip: For help with reading an annual report access this handy guide from Moneychimp
(http://www.moneychimp.com/articles/financials/fundamentals.htm)
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Document Details
University
North South University
Subject
Finance