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Financial assumption to deny the project as returns

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Reference no: EM131753005

You will use the WACC as the discount rate to conduct capital budgeting analysis for a project that the firm is considering and then decide whether it should be accepted or not which is " Building a new Building" for $1 million. If you do not have a number you need, research it and state your assumptions that you used to get the missing number.

WACC = 14.90%

The assumptions will be - based upon Amazon's cost of debt, current corporate tax rate, company bond yield, etc, will it be advised to build a new building for $1 mil or not.

It is. kindly develop a number based on a financial assumption to deny the project as returns would be too small compared to the vast size of Amazon as a company.

Returns from a building project with total $1 Mil is far too small for amazon using capital budgeting

Reference no: EM131753005

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