Capital Budgeting - 1 Capital Budgeting On Google Inc You...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Capital Budgeting – On Google Inc You will perform an analysis based on information provided and determine the most desirable investment alternative to select. The analysis involves the choice between two mutually exclusive investment proposals to install two types of machinery that yield different operating efficiencies that affect cash flow. The objective of this is to select the investment alternative that best fits the long- term strategic goals and objectives of the company and that produces the economic impact most favorable to the maximization of shareholder wealth. Prepare a report, not to exceed four pages, on the following features of the company. Assume that the company will use its WACC (weighted average cost of capital) as the discount rate basis for analysis. Given the firm's current capital structure, what is the firm's WACC? You may assume the WACC to be 2 points plus the prevailing New York prime lending rate. The superior paper will go through a detailed calculation of the WACC.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Capital Budgeting - 1 Capital Budgeting On Google Inc You...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online