Reference no: EM132535278

Imagine you are a representative of management in the company you have selected for your Week 6 Assignment and you must make a capital budgeting decision. The decision is to implement a new computer network system to decrease the time between customer order and delivery. The cost will be 10% of last year's profits. You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following:

Question 1: A description of the important factors, in addition to quantitative factors, that were considered when making this capital budgeting decision.

Question 2: An explanation of how these factors are significant to the company.

Question 3: A summary of how you will determine the criteria to rank capital budgeting decisions and whether some criteria are more important than others.

Question 4: A calculation of the proposed return on investment based on criteria you select and justification for that ROI.

• Develop a 200 - 250 word explanation supporting your recommendations.

Revisit the company you chose for your Week 6 Final Project. Using the annual report and other sources such as a 10k or 10q's, discuss the dividend policy of your company.

Answer the following questions as part of your response:

Question 5: How would you describe your chosen company's dividend policy?

Question 6: Why do you believe this company chose the dividend policy they have in place?

Question 7: Do you agree or disagree that they have selected the best dividend policy for the company?

Question 8: How might this dividend policy function in both perfect and imperfect capital markets?

Question 9: Calculate the dividend rate over the past 5 years. Define why you believe that it has or has not changed over the last 5 years.

• Support your position with evidence from the text or external sources.
• Your post should be 200-250 words in length.