Investment decision
Educator2

Analyze the following scenario: Duncombe Village Golf Course is considering the purchase of new equipment that will cost $1,200,000 if purchased today and will generate the following cash disbursements and receipts. Should Duncombe pursue the investment if the cost of capital is 8 percent? Why? Clearly label your calculations in your analysis. You must respond to at least two of your classmates’ postings to receive full credit.
Year  Cash Receipts  Cash Disbursements  Net Cash Flow 
1  1,000,000  500,000  500,000 
2  925,000  475,000  450,000 
3  800,000  450,000  350,000 
4  750,000  430,000  320,000 
This class requires you to mathematically solve several financial management problems using simple algebra. The book has stepbystep explanations and examples. Two comments about math:
1) Starting with Assignment 1 you are going to need to manipulate numbers and in many cases submit an MS Excel spreadsheet. In most cases you will also need to submit a short paper about some decision you are recommending. Treat your papers as if you are writing to a "math phobic" boss, e.g., explain what the math means when reaching you recommendation.
2) Starting with Week 2 the discussion questions have math problems embedded. I know it may be difficult to "discuss" arithmetic, but are a graduate student. So get creative and get some reasonable 200word posts in the Dqs.
 6 years ago
Purchase the answer to view it
 cashflowassignment.doc