BUS650 Week 5 Discussion 1 Factors in Capital Budgeting Decisions

Question: #22036

BUS650 Week5 DQ1 Factors in Capital Budgeting Decisions Factors in Capital Budgeting Decisions. Imagine you are a representative of management in the company you have selected for your Week Six assignment and you must make a capital budgeting decision. The decision is to implement a new computer network system to decrease the time between customer order and delivery. The cost will be 10% of last years profits. You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following: A description of the important factors, in addition to quantitative factors, that were considered when making this capital budgeting decision. An explanation of how these factors are significant to the company. A summary of how you will determine the criteria to rank capital budgeting decisions and whether some criteria are more important than others. A calculation of the proposed return on investment based on criteria you select and justification for that ROI. Develop a 200 250 word explanation supporting your recommendations. Tip: For help with reading an annual report access this handy guide from Money Chimp (http://www.moneychimp.com/articles/financials/fundamentals.htm)

Solution: #22073

BUS650 Week 5 Discussion 1 Factors in Capital Budgeting Decisions

A+ Please look at the attach...