Please help with the attached capital budgeting assignment. I will be out of the country for a few weeks without access to a computer

Week 4 Capital Budgeting Investment, Model and Analysis (Rev. 12/14/16) Capital Budgeting Investment, Model, and Analysis Use the company that was selected for the class assignments. This assignment involves development of an Excel-based capital budgeting model and an analysis of a proposed capital budgeting project. Prepare Capital Budgeting Model and Analysis Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. You may find some information about proposed capital budgeting projects in the Form 10K, news releases, or other company information sources. More than likely, it will be necessary to estimate the cash flows associated with the project. Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). The Excel spreadsheet that you develop must use Excel's automated financial functions for determining the NPV, IRR, MIRR, and PI. Following the completion of the spreadsheet analysis, explain whether, or not, the project should be implemented and why? Also, discuss what the various indicators (i.e., NPV, IRR, MIRR and PI) mean? For this assignment, it is necessary to design and develop your own Excel spreadsheet; it needs to be submitted. Beyond the traditional inputs, outputs, and assessment criteria, what new and interesting features can you incorporate into the model? The analysis needs to include: 1. Description of Proposed Capital Budgeting Project - Describe a capital budgeting project (i.e., an investment in fixed assets) that might be undertaken by the company that you have selected. Make sure that the project has an initial investment in Year 0, followed by a series of annual cash flows for at least seven (7) years. In addition, determine the discount rate, or hurdle rate, that is appropriate for this project and explain the determination of that rate. 2. Explanation of the Excel Capital Budgeting Model - Develop your own Excel spreadsheet model that can be used to determine the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI). Explain how the model is constructed and the required inputs. Discuss the outputs of the model. 3. Explanation and Interpretation of Capital Budgeting Criteria - Prepare a written analysis of the results including NPV,IRR, MIRR, PI, and Profitability Analysis. 1 4. Recommendation About Implementation of Capital Budgeting Project - Develop and defend a recommendation about whether the proposed project should be implemented or not. Writing Instructions The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be submitted limited to four separate attachments in an appendix after the written portion of the paper. The paper should begin with a short introduction and then proceed to examine the four topics outlined in the previous section. The subheadings used in the paper should be: 1. Introduction 2. Description of Proposed Capital Budgeting Project 3. Explanation of the Excel Capital Budgeting Model 4. Explanation and Interpretation of Capital Budgeting Criteria 5. Recommendation About Implementation of Capital Budgeting Project Evaluation: 12.5% of final course grade. Completeness of analysis: The analysis must demonstrate a solid understanding of capital budgeting and the analysis of corporate investments. All assumptions used in preparing the projections for the project need to be thoroughly explained. Organization: The paper should be well-organized and follow a logical pattern of analysis and discussion. Presentation: Papers should meet professional business standards and meet APA formatting requirements. Spelling, punctuation, and grammar: There should be few errors in grammar and punctuation. All sentences must be complete and well-structured. Submission and Format: The completed paper is to be submitted to the \"Gradebook\" location designated for the assignment. The paper must be in Word format otherwise no credit is earned for the assignment. The Excel capital budgeting model is to be submitted. The paper is also to be submitted to the Online Classroom. This will allow students to examine and discuss the various projects. 2 3 4 Running Header: GAP INC. CAPITAL PROJECT The Gap, Inc. - Analysis of Capital Project Proposal University of Maryland, University College FINC 430 1 GAP INC. CAPITAL PROJECT 2 The Gap, Inc. - Analysis of Capital Project Proposal I. Introduction Historically, The Gap, Inc. (GPS) has invested quite heavily in capital projects to enhance competitive advantage. The majority of GPS' capital expenditures in recent years have been related to the opening of new stores or enhancement of current stores among its five brands: Gap, Old Navy, Banana Republic, Athleta, and Intermix [The16]. In 2015, 77% of GPS' sales were in the United States, 5% in Europe, 7% in Canada, 10% in Asia, and 1% in \"Other regions\" [Gra02]. To continue expanding internationally and compete in the global apparel industry, it is necessary for GPS to consider capital projects and conduct analysis to determine which project/projects add the most value for GPS. This paper will first describe the proposed capital budgeting project for GPS. An explanation of the Excel Capital Budgeting Model used in the analysis will follow. All criteria used in the analysis, including the weighted average cost of capital (WACC), the net present value (NPV), the internal rate of return (IRR), the modified internal rate of return (MIRR), and the profitability index (PI) will be explained and interpreted. The final section of this paper will recommend whether or not the proposed project should be implemented by The Gap, Inc. II. Description of Proposed Capital Budgeting Project Among GPS' brands, Old Navy has been performing better than the others in recent years. In 2015, Old Navy's global sales increased by one percent, compared to sales decreases in all other brands [The16]. Old Navy is the only brand which has seen increases in sales during the last three fiscal years [The16]. In fact, Old Navy's sales made up the largest portion of GPS' sales in 2014 and in 2015. According to GPS' 2015 Annual Report, GPS will \"continue to invest... GAP INC. CAPITAL PROJECT 3 through significant investments in... international expansion...\" [The16]. With expanding its global presence a top priority, GPS has been adding stores around the world. Asia has been a particularly profitable region for Old Navy in recent years. GPS opened 25 new Old Navy stores in Asia in 2014, while it opened 22 new Old Navy stores in Asia in 2015. Sales have increased for Old Navy Asia stores lately; sales were $77 million in 2013, $149 in 2014, and $194 million in 2015 [The16]. The proposed project for GPS is to continue the expansion of the Old Navy brand by opening 30 new Old Navy stores in Asia. The acquisition of the required property and equipment needed for these 30 new stores would cost approximately $77 million dollars. An additional $15 million of inventory would be needed to open these 30 stores. In addition to the aforementioned initial outlay of $92 million, operating expenses for each store would cost over $1 million annually, totaling approximately $33.8 million annually for the thirty stores. Additional advertising expenses would cost an estimated $4.7 million annually. In the first year, GPS would experience increases in sales of approximately $61.4 million. The project will be financed through the issuance of debt. III. Explanation of the Excel Capital Budgeting Model The attached Excel Capital Budgeting Model was created to calculate various indicators used to evaluate a capital project. The first tab uses inputs from the second tab to calculate all cash flows for seven years, the WACC, NPV, IRR, MIRR, and PI. The second tab, \"Supporting Calculations and Input\