Capital Budgeting Case Nima One 1

(1) Read the attached case study about Nima One.

(2) Answer each case question and submit evidence of all calculations toward any numerical support for your conclusions.

Skills

Compare capital funding methods and sources.
Apply the weighted average cost of capital (WACC) formula to a project’s cost of capital.
Calculate cash flows on capital budget projects.
Evaluate investment opportunities using various techniques such as net present value (NPV), internal rate of return (IRR), and payback period.
Describe risk in capital budgeting and strategies, such as sensitivity analysis, scenario analysis, and risk adjusted discount rate.
Assess decisions that affect the capital structure.
Evaluate a firm’s capital budgeting policies, planning, structure, and cost.