The Basics of Capital Budgeting

Textbook: Brigham & Ehrhardt (2014 & 2016). Financial Management: Theory & Practice. (15th Ed). Cengage Learning.

Chapter 9 – The Cost of Capital
Chapter 10 – The Basics of Capital Budgeting: Evaluating Cash Flows
Chapter 11 – Cash Flow Estimation and Risk Analysis

Instruction:

Complete the Mini Case Assignment at the end of Chapter 11 in your textbook (pages 495 and 496). Be sure to answer all of the questions given for the case.

Format: APA Case Study: Must meet minimum word count per section as listed below.

1. Introduction – minimum of 125
   1) Analysis – minimum 325
   2) Solution – minimum 325
   3) Justification – minimum 225
   4) Summary – minimum 125
   Important Note on the Justification section: Please include breakdown of the justifications into separate bullet points followed by the supporting explanation
   Assignment Outcomes:
2. Explain why strategic planning is a necessary for effective financial management.
3. Describe the necessity of a realistic budget as a guideline to effective financial management.
4. Practice ethical behavior in regard to information and information technology. Required References – Total of 5
5. Brigham & Ehrhardt (2014 & 2016). Financial Management: Theory & Practice. (15th Ed). Cengage Learning.
6. Plus: Two textbooks (cannot be older than 2013)
7. Plus: Two more journals/articles (cannot be older than October 2018).

Sample Solution