Capital Budgeting with Funding Sources
This SLP has two parts.
Part I
Every company has capital projects. The company you have selected must need something! Be it a new wing to the building, a new product line to be funded, a new piece of equipment, find one new acquisition your company needs.
Once you have identified the new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded? Issues might be:
- Risk
- Cost
- Politics (getting it through committees)
- Public Relations
- etc.,
Identify a potential capital project for your company describe such a project and write a short summary of the problems you see in getting the funding to see it through.
Part II
Examine the structure and activities in your organization and identify two projects or events that required an investment. One should be a ‘current project’ and the other long-term investment project.
For each project or event, identify the preferable source of funding. You may not have access to the actual source of funding so limit your paper to the source YOU feel is most appropriate. Then explain why you feel that source is most appropriate.
This is a Signature Assignment Expectation for FIN301 Module 4 SLP
There are 2 specific learning outcomes: 1) apply business theories, models, and concepts to guide analysis of problems and situations and 2) utilize data driven analysis in making business decisions.
In this SLP assignment for Module 4 our emphasis will be on understanding the preferable source of funding. You will be summarizing all of what you learned the in the Cases, SLPs and TDs.
The grading rubric below has been developed to measure student success in meeting the FIN301 Module 4 SLP expectations related to applying your knowledge of the source of funding on making business decisions.