Reference no: EM132471688

Question 1: With this information, can you help me understand the bullet points for this scenario? For example, what budgeting tools to compute future projections of cash flows? Also, it states to "remember to only evaluate the incremental changes to cash flows."

Scenario:

Jennifer reiterates that your report is critical for the company to select the project that will bring the most value to shareholders. Your calculations and report should address these items for her and other stakeholders:

Problem 1: Apply computations of capital budgeting methods to determine the quality of the proposed investments. Use budgeting tools to compute future project cash flows and compare them to upfront costs. Remember to only evaluate the incremental changes to cash flows.

'Problem 2: Demonstrate knowledge of a variety of capital budgeting tools including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). The analysis of the capital projects will need to be correctly computed and the resulting decisions rational.