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Assignment 1: Capital Budgeting
Capital budgeting is a tool used in business to determine the financial viability of a potential project. Net present value, internal rate of return, payback, discounted payback, and modified rate of return are some of the calculations used once businesses have a reliable cash flow budget for their project.
In this assignment, you will demonstrate your understanding of the necessary aspects of capital budgeting.
Tasks:
Respond to the following:
- What is capital budgeting and why is it important to business decisions?
- Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.
- What could go wrong with the capital budgeting process?
- Provide an example of a capital budgeting process from an online source and explain the salient points of this example to the class.
In a minimum of 300-500 words, post your responses using critical thinking and analysis.
Submission Details:
- By Week 3, Day 3, post your responses to this Discussion Area. Support your assumptions by citing the source material used for this discussion in APA format.
- Through Week 3, Day 7, read and respond to at least two of your classmates’ posts. While responding, share any real-world experiences in capital budgeting. Provide substantive comments by contributing new, relevant information or quotes from course readings, Web sites, or other sources; by building on the remarks or questions of others; or by sharing practical examples of key concepts from your experiences—professional or personal.
Do the following when responding to your peers:
- Read your peers’ responses.
- Provide substantive comments to at least two peers on a minimum of two different days by
- contributing new, relevant information from course readings, Web sites, or other sources;
- building on the remarks or questions of others; or
- sharing practical examples of key concepts from your professional or personal experiences.
- Respond to feedback to your own posting and provide feedback to other students about their ideas.
- Make sure your writing
- is clear, concise, and organized;
- demonstrates ethical scholarship in accurate representation and attribution of sources; and
- displays accurate spelling, grammar, and punctuation.
Grading Criteria
| Assignment Components |
Max Points
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Initial response was:
- Insightful, original, accurate, and timely.
- Substantive and demonstrated advanced understanding of concepts.
- Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions.
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16
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Discussion Response and Participation:
- Responded substantively to a minimum of two peers on a minimum of two different days.
- Offered points of view supported by research.
- Asked challenging questions that promoted discussion.
- Drew relationships between one or more points in the discussion.
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16
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Writing:
- Wrote in a clear, concise, formal, and organized manner.
- Responses were error free.
- Information from sources, where applicable, was paraphrased appropriately and accurately cited.
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8
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| Total: |
40
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