Assignment 1: Capital Budgeting
Capital budgeting is a tool used in business to determine the financial viability of a potential project. Net present value, internal rate of return, payback, discounted payback, and modified rate of return are some of the calculations used once businesses have a reliable cash flow budget for their project.
In this assignment, you will demonstrate your understanding of the necessary aspects of capital budgeting.
Tasks:
Respond to the following:
What is capital budgeting and why is it important to business decisions?
Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.
What could go wrong with the capital budgeting process?
Provide an example of a capital budgeting process from an online source and explain the salient points of this example to the class.
In a minimum of 300-500 words, post your responses using critical thinking and analysis.
Submission Details:
By the due date assigned, post your responses to this Discussions Area. Support your assumptions by citing the source material used for this discussion in APA format.
Through the end of the module, read and respond to at least two of your classmates’ posts. While responding, share any real-world experiences in capital budgeting. Provide substantive comments by contributing new, relevant information or quotes from course readings, Web sites, or other sources; by building on the remarks or questions of others; or by sharing practical examples of key concepts from your experiences—professional or personal.
Do the following when responding to your peers:
Read your peers’ responses.
Provide substantive comments to at least two peers on a minimum of two different days by
contributing new, relevant information from course readings, Web sites, or other sources;
building on the remarks or questions of others; or
sharing practical examples of key concepts from your professional or personal experiences.
Respond to feedback to your own posting and provide feedback to other students about their ideas.
Make sure your writing
is clear, concise, and organized;
demonstrates ethical scholarship in accurate representation and attribution of sources; and
displays accurate spelling, grammar, and punctuation.
Grading CriteriaMaximum PointsQuality of initial posting, including fulfillment of assignment instructions16Quality of responses to classmates12Frequency of responses to classmates4Reference to supporting readings and other materials
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