Q1. As a consultant to your company. Your objective is to assess that the company understands how project cash flows are evaluated and whether that evaluation fully considers the weighted average cost of capital (WACC).

Generate a short memo to the company Chief Financial Officer addressing the following items:

• Discuss the common funding sources used for projects at the company
• Identify the discount rate(s) used when projects are evaluated
• Compare and contrast the company's current discount rate method versus WACC
• Discuss the benefits associated with changing methods to WACC

Q2. Discuss the current involvement and visibility you have in the evaluation of potential projects and the funding choices at your organization. Provide the benefits you would see to having more information about funding sources and the evaluation of the project, that is, how this information would make managing a project easier and more successful.

Answer rating: 100% (QA)

To Chief Financial Officer From Your Name Consultant Date Date Subject Evaluation of Project Cash Flows and Discount Rates Dear CFO I hope this memo finds you well As part of our ongoing assessment of ... View the full answer