Complete the Capital Budgeting Case using the information on the Capital Budgeting Case document. Your analysis should be presented in a report format with the following parts. Thank you. I will like$/$upvote your answer!

The Big Company is considering the following investment alternatives with the objective of increasing

sales of Product P$.$ You have been asked to evaluate each option:

Investment A: Purchase new machinery with the capacity to increase production of Product P$.$ The machine

will cost $$501,000$ and Big has experience with this type of equipment. Given that this investment is

considered to have a reasonably low risk associated with it$,$ the company appropriately selected a $6\%$ required

rate of return $($discount rate$).$

Investment B: Purchase new machinery that is also believed to have the capacity to increase production of

Product P$.$ This machine will cost $$520,000.$ This type of machinery uses new technology that has not been fully

tested so there are some concerns about its actual productivity. The company chose an $8\%$ required rate of

return $($discount rate$).$

Investment C: Purchase new machinery that is also believed to have the capacity to increase production, but

again, there is concern that the new technology that this machine uses has not been fully tested. This machine

will cost $$525,000.$ However, instead of producing Product P$,$ Big would enter a new market by producing

Product $Q.$ Big has little familiarity with marketing Product $Q.$ The company chose a $10\%$ required rate of

return $($discount rate$).$

Your case analysis should be presented in a report format with the following parts:

Case analysis overview, Here you should specifically identify the objective of your analysis of the

Investment opportunities.

II$.$ Determine the Payback Period. Here you should determine the payback period for each project and

show your computations.

III. Calculate the Net Present Value. Here you should calculate the net present value for each project.

Using the discount rates given for each project, calculate the net present value for all three

investments and show detailed computations for each investment.

IV$.$ Why did the company select different required rates of return for each investment? The required

rate of return for investment $B$ is greater than investment $A,$ and even greater for Investment $C.$ Why

does the company expect greater returns for investments $B$ and $C?$

v$.$ Calculate the internal Rate of Return. Here you will calculate the internal rate of return for each

project. Round your answer to one decimal point and show your computations.

VI$.$ What do you recommend? For each method $($payback$,$ net present value, and internal rate of return$)$

identify whether the investment is acceptable or not.

VII. Considering all methods, what is your overall recommendation? Explain fully why you made your

recommendation. Include a discussion of the advantages and disadvantages of each method. How you

support your recommendation is most important.