Time Value of Money

Essay

Objective: Describe the sources of capital available to firms and estimate the cost for various sources.

Introduction: Capital Budgeting is a process where business will identify and make long term investment decisions. Capital budgeting can transition across projects that include long term investments that are expected to generate cash flows over several years.

Deliverables: Written Assignment 3 full pages (exclusive of title and reference pages), applying APA formatting

Activity Details:

Step 1: Watch the Film

Watch the film and note how Boeing decides whether to invest in a new project. How do they use capital budgeting and NPV? Are there rules specific to that industry? What considerations do they have to discuss?

View this link: Capital Budgeting and the Boeing Dreamerliner.
https://media.pearsoncmg.com/aw/aw_finance_videos/capital-budgeting/index.php?video=boeing&size=Lg 

Step 2: Introduction
Begin with an introductory paragraph that describes what capital budgeting is and why it is important for leadership to understand with respect to long term investments and future business growth.

Step 3: Write a 3-page essay. 3 full pages (exclusive of title and reference pages).
From the film and your research:

Explain and describe how companies use capital budgeting to their advantage                     
Describes how Boeing used capital budgeting within its industry to advance business
Research (internal readings and external sources) and describe how another company used capital budgeting to advance business opportunity
For the conclusion paragraph summarize what you have learned about the capital budgeting process.

Please review the link provided below, containing the essay rubric, prior to proceeding:

https://owl.english.purdue.edu/owl/