Business > CASE STUDY > FPX5014__ASSESMENT2.docx FPX5014 Applied Managerial Finance Evaluation of Capital Proje (All)

FPX5014__ASSESMENT2.docx FPX5014 Applied Managerial Finance Evaluation of Capital Proje

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FPX5014__ASSESMENT2.docx FPX5014 Applied Managerial Finance Evaluation of Capital Projects Introduction Below you will find my analysis for the research of three potential capital projects that D... rill Tech, Inc is debating for the upcoming year. Also attached is the spreadsheet that contain the data to back up my research and opinion on how to proceed with the best option. The capital budgets in the attached spreadsheet will show what each project will potentially bring to the company in terms of financial gain/loss. It also shows when each project will recover the cost and the amount of time it will take. The rate at which the project will see the return depends on œfactors specific to the company as well as the project. (Pinkasovitch, 2020). Implementing a capital budget will allow Drill Tech, Inc to effectively measure the individual projects and chose the best one so to ensure a spot in the œcompetitive marketplace (Pinkasovitch, 2020). In a capital budget there are œthree metrics (Pinkasovitch, 2020) that should generally come to the conclusion, according to Pinkasovitch. Net present value, integral rate of return, payback period and profitability index. The net present value will give the company a projection about what the initial investment will be worth at the end of the period. This calculation is done by taking œtodays value of expected cash flows and subtracting todays value of expected cash (Fernando, 2020). The IRR or internal rate of return is the projection of what the compan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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