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# QRB 501 Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer

` QRB 501 Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer`

``` QRB 501 Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer QRB 501 Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer QRB 501 Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer QRB 501 Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer Capital Budgeting Case Your company is thinking about acquiring another corporation. You have two choices—the cost of each choice is \$250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data: Corporation A Revenues = \$100,000 in year one, increasing by 10% each year Expenses = \$20,000 in year one, increasing by 15% each year Depreciation expense = \$5,000 each year Tax rate = 25% Discount rate = 10% Corporation B Revenues = \$150,000 in year one, increasing by 8% each year Expenses = \$60,000 in year one, increasing by 10% each year Depreciation expense = \$10,000 each year Tax rate = 25% Discount rate = 11% Compute and analyze items (a) through (d) using a Microsoft® Excel® spreadsheet. Make sure all calculations can be seen in the background of the applicable spreadsheet cells. In other words, leave an audit trail so others can see how you arrived at your calculations and analysis. Items (a) through (d) should be submitted in Microsoft® Excel®; indicate your recommendation (e) in the Microsoft® Excel® spreadsheet; the paper stated in item (f) should be submitted consistent with APA guidelines. a. A 5-year projected income statement b. A 5-year projected cash flow c. Net present value (NPV) d. Internal rate of return (IRR) e. Based on items (a) through (d), which company would you recommend acquiring? f. Write a paper of no more 1,050 words that defines, analyzes, and interprets the answers to items (c) and (d). Present the rationale behind each item and why it supports your decision stated in item (e). Also, attempt to describe the relationship between NPV and IRR. (Hint. The key factor is the discount rate used.) In addition to the paper, a Micosoft® Excel® spreadsheet showing your projections and calculations must be shown and attached. For instant digital download of the above solution, Please click on the “PURCHASE” link below to get the tutorial for Capital Budgeting Case_Your company is thinking about acquiring another corporation_Answer For instant digital download of the above solution or tutorial, please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link. In case you find any problem in getting the download link or downloading the tutorial, please send us an email on mail@genietutorial.com \$25.00 – Purchase Added to cart ```