Question: Capital Budgeting Analysis (40 points) - Using the WACC obtained from in Step (4) as the discount rate for this project, apply capital budgeting analysis
Capital Budgeting Analysis (40 points) - Using the WACC obtained from in Step (4) as the discount rate for this project, apply capital budgeting analysis techniques (NPV, IRR, MIRR, PI, Payback, Discounted Payback) to analyze the new project. - Perform a sensitivity analysis for the effects of key variables (e.g., sales growth rate, cost of capital, unit costs, sales price) on the estimated NPV or IRR in order to demonstrate the sensitivity of the model. The Scenario analysis of several variables simultaneously is encouraged (but not required). A document Sensitivity Analysis using Data Table in Excel is provided for the introduction of the Data Table function in Excel. - Discuss whether the project should be taken and summarize your report
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To perform a capital budgeting analysis for the new project several techniques can be applied including NPV Net Present Value IRR Internal Rate of Ret... View full answer
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