doby_tiffany_executive_summary_project5.docx - Executive...

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Executive SummaryPurpose of ReportMaryland Creative Solutions, LLC has signed a contract with McCormick & Company. Maryland Creative Solutions, LLC has been asked to assist in determining if McCormick & Company’s new project which requires an initial investment to build a new plant and purchase equipment is worthwhile. MethodsAs the analyst on the account I analyzedand recommend improvements in McCormick & Company’s operations as well as investigated options to make cost of capital decisions based on their capital budgeting. To determine the feasibility of McCormick & Company’s plan a capital budget assessment was performed. This method was conducted through the analysis of the weight of equity and debt, cost of equity and debt, net present value, internal rate of return and the weighted average cost of capital were analyzed. Findings and ConclusionsMcCormick & Company requires an initial investment of $350 million to build a new plant and

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