Part I
PV= FV / (1+i)^y PV= present value, FV= future value, i= discount rate, and y= time. 1a) If the discount rate is 0%, what is the projects net present value? YearCash FlowDiscount RateDiscounted Cash Flow

0-$400,0000%-$400,000
1 $100,0000% $100,000
2 $120,0000% $120,000
3 $850,0000% $850,000
Answer: The projects net present value is $670,000
If the discount rate is 2%, what is the projects net present value? YearCash FlowDiscount RateDiscounted Cash Flow
0-$400,0002%-$400,000
1 $100,0002% $98,039
2 $120,0002% $115,340
3 $850,0002% $800,974
Answer: The projects net present value is $614,353.45
If the discount rate is 6%, what is the projects net present value? YearCash FlowDiscount RateDiscounted Cash Flow
0-$400,0006%-$400,000
1 $100,0006% $94,340
2 $120,0006% $106,800
3 $850,0006% $713,676
Answer: The projects net present value is $514,815.59
If the discount rate is 11%, what is the projects net present value? YearCash FlowDiscount RateDiscounted Cash Flow
0-$400,00011%-$400,000
1 $100,00011% $90,090
2 $120,00011% $97,395
3 $850,00011% $621,513
Answer: The projects net present value is $408,997.46
With a cost of Capital of 5%, what is this project's modified internal rate of return (MIRR)? The formula is: MIRR = (-FV/PV)1/n-1-1
Answer: For this project, the projected MIRR is 42.72%
My next task was to build a graph and explain what is showed. Answer: The graph showed the net present value decreased as the discount rate increased. The net present value crosses the horizontal line at approximately 42%, just before the Modified internal rate of return of 42.72%. 1b) What is the projects internal rate of return?

...Week 4 Discussion Question 1b
Introduction
Capitalbudgeting is one of the most crucial decisions the financial manager of any firm is faced with...Over the years the need for relevant information has inspired several studies that can assist firms to make better decisions. These models are assigned so that they make the best allocation of resources. Early research shows that methods such as payback model was more widely used which is basically just determining...

...Capitalbudgeting (or investment appraisal) is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.[1]
Many formal methods are used in capitalbudgeting, including the techniques such as
* Accounting...

...What long-term investments should the firm undertake (capitalbudgeting) and how will investment and finance decisions affect the firm's value (valuation)?
How can cash be raised for the required investments? This is known as the financing decision' (cost of capital, capital structure and leasing).
How will the firm manage its day-to-day cash and financial affairs (short-term financing and net working capital)?...

...CAPITALBUDGETING
The process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing. Oftentimes, a prospective project's lifetime cash inflows and outflows are assessed in order to determine whether the returns generated meet a sufficient target benchmark.
Also known as "investment appraisal."
Generating investment project proposals consistent with the firm’s strategic objectives;...

...
CapitalBudgeting Analysis Project
MBA 612
The General CapitalBudgeting Process and how it is implemented within Organizations
The general capitalbudgeting process is the tool by which an organization determines its choice of investments through analyzing and evaluating its cash in and out flows. The capital budget...

...number of techniques of capitalbudgeting. Some of the methods are based on the concept of incremental cash flows from the projects or potential investments. There are some other techniques of capitalbudgeting that are based on the accounting rules and accounting earnings.
However, the techniques based on the accounting rules are considered to be improper by the economists. The hybrid and simplified techniques of capital...

...
CapitalBudgeting
QRB/501
July 25, 2013
On this paper the reader will be able to find the rationale in the analysis of a specific capitalbudgeting case study. Definitions along with explanations related to capitalbudgeting such as Internal Rate of Return (IRR) and Net Present Value (NPV) will be provided and debriefed. It is extremely relevant to mention that capital...

...Capital Budget Recommendation
Anne Adams
University of Phoenix
Managerial Accounting and Legal Aspects of Business
AC543
Sean DAmico
August 20, 2012
Abstract
This paper will give a comparison between the various preferred capitalbudgeting evaluation techniques in the corporate business setting. There will be a recommendation given for the Guillermo Furniture Company based on the results of one or more evaluation techniques, which in turn...