(I check for plagiarism) Check the work on the attached assignment and write an executive summary outlining both the project choice and why. It must follow the proper essay format of intro-body-conclusion. It must be written from a leadership perspective, and should speak the the ethics involved in making the decision and the impact on shareholders. 1-2 pages double spaced.Below are the original assignment instructions. I’m attaching all necessary documentation as well.Capital Budgeting Case – From the given case information, calculate the firm’s WACC then use the WACC to calculate NPV and evaluate IRR for proposed capital budgeting projects with a capital rationing constraint. After you choose the project(s), recalculate the capital structure based on the assumption that the project(s) are implemented and determine if the new capital structure will signal the investors either positively, negatively, or not at all. Write a business report on your findings. Include an executive summary and appendices if applicable. See rubric for specific graded criteria. Click on the attached case info document and rubric for additional information.Accounting
Institution Affiliation
Student’s name
Instructor’s name
Date of submission
Weighted Cost of capital debt and equity = cost of common equity + cost of long term debt +
cost of preferred stock
= (0.25 *7%) + (19%*0.25) + (20% *0.50)
= 1.75% + 4.75% + 1%
= 7.5%
This weighted average cost then becomes the minimum interest rate that can be used for project
evaluation. Therefore, we use this to calculate the NPV, IRR, & payback period.
NPVA = (25,000/(1 + 0.075)^1 + 35,000/(1 + 0.075)^2 + 45,000/(1 + 0.075)^3 + 50,000/(1 +
0.075)^4 + 55000/(1 + 0.075)^5) less initial outlay
= (23255.8 + 30,286.6 + 36223.2 + 37440.0 + 38310.7) – 130,000
= 165,517 – 130,000
= 35,517
NPVB = (40,000/(1 + 0.075)^1 + 35,000/(1 + 0.075)^2 + 30,000/(1 + 0.075)^3 + 10,000/(1 +
0.075)^4 + 5000/(1 + 0.075)^5) less initial outlay
= (37209.3 + 30,286.6 + 24148.8 + 7,488 + 3482.8) – 85,000
= 72328.9 – 85,000
= – 12671.1
From the above findings, the project viable for investment is project A, since it has a positive
NPV. All projects with a negative NPV indicate that the cost for the stock will decline and
therefore should not be implemented.
IRR
Is the rate at which the sum net present values of all cash flows is equal to zero
0 = – C0 + C1(1 + IRR)1 + C2(1 + IRR)2 + C2(1 + IRR)3 + C3(1 + IRR)4 + C4(1 + IRR)5
Where Co – – – C4 represent the cash flows for the consecutive years
The IRR calculation will use the net present value of each year’s cash flow.
Let IRR be n
Project A
0
= – 130,000 + 23255.8(1 + n)1 + 30286.6(1 + n)2 + 36223.2(1 + n)3 + 37440(1 + n)4 +
38310.7(1 + n)5
= 7.57%
Project B
0
= – 85000 + 37209.3(1 + n)1 + 30286.6(1 + n)2 + 24148.8(1 + n)3 + 7488(1 + n)4 +
3482.8(1 + n)5
= 10.0075%
Using the IRR as the mode of analysis, the company should invest in project B since the internal
rate of return is higher than that of project A, and the minimum rate acceptable for investment.
Project B has a payback period of only 3 years, while project A has 5-year payback period.
However, it is not enough to use this method since there is a great difference in the initial cash
outlays for each project.
NEW WACC
= (7% * 0.2) + (19% * 0.2) + (20% 0.6)
= 1.4% + 3.8% + 1.2%
= 6.4%
The new WACC indicates that the market value of the debt and the stock price has a great impact
on the cost of capital invested in the projects. Changing the attention to the retained earnings and
contribution of the stakeholders to investment would actually make the cost of capital cheaper
and better returns consequently.
FIN300 
Portfolio Project Scoring Rubric 

Criteria 
Meets Expectation 
Content, Research, and Analysis 
 
 21‐25 Points 
Requirements 
The Portfolio 
includes all of the 
required 
components, as 
specified in the 
assignment. 
 
 21‐25 Points 
Content 
Demonstrates 
strong or adequate 
knowledge of the 
materials; correctly 
represents 
knowledge from 
the readings and 
sources. 
 
33‐40 Points 
Purpose of the 
Purpose of the 
Proposal 
proposal is well 
defined, supported 
and articulated. 
 
Explanation of 
Financing 
 
Approaches 
Expectation 
 16‐20 Points 
The Portfolio 
includes most of 
the required 
components, as 
specified in the 
assignment. 
 16‐20 Points 
Some significant 
but not major 
errors or omissions 
in demonstration 
of knowledge. 
25‐32 Points 
Statement of 
purpose includes 
significant but not 
major flaws and 
errors in definition, 
support and 
articulation. 
49‐60 Points 
37‐48 Points 
Company’s WACC,  Small number of 
capital structure, 
significant but not 
dividend policy if 
major flaws in 
applicable, and the  explanation of 
reason for the 
company’s WACC, 
change in financing  capital structure, 
are clearly 
dividend policy if 
explained. 
applicable, and the 
Alternatives that 
reason for the 
meet the 
change in financing 
company’s 
are present. 
expectations for 
Alternatives that 
increasing 
meet the 
shareholder value  company’s 
are presented. 
expectations for 
 
increasing 
shareholder value 
Below Expectation 
Limited Evidence 
11‐15 Points 
The Portfolio 
includes some of 
the required 
components, as 
specified in the 
assignment. 
11‐15 Points 
Major errors or 
omissions in 
demonstration of 
knowledge. 
6‐10 Points 
The Portfolio 
includes few of the 
required 
components, as 
specified in the 
assignment. 
6‐10 Points 
Fails to 
demonstrate 
knowledge of the 
materials. 
17‐24 Points 
Statement of 
purpose includes 
major flaws and 
errors in definition, 
support and 
articulation. 
9‐16 Points 
Statement of 
purpose is not 
defined, 
supported, and 
articulated. 
25‐36 Points 
Major problems in 
organization and 
writing Company’s 
WACC, capital 
structure, dividend 
policy if applicable, 
and the reason for 
the change in 
financing are 
present. 
Alternatives that 
meet the 
company’s 
expectations for 
increasing 
shareholder value 
are poorly 
13‐24 Points 
Fails to explain 
company’s WACC, 
capital structure, 
dividend policy if 
applicable, and the 
reason for the 
change in 
financing. 
Alternatives that 
meet the 
company’s 
expectations for 
increasing 
shareholder value 
are not presented. 
 
FIN300 
Portfolio Project Scoring Rubric 

 
Report or 
Presentation 
Structure 
 
 
Quantitative 
Calculations 
 
Common Core  
 
Critical Thinking 
 
Ethics 
 
Leadership 
are somewhat 
explained. 
49‐60 Points 
37‐48 Points 
Quantitative 
Quantitative 
findings are clearly  findings are stated 
stated and well 
and somewhat 
integrated into the  integrated into the 
written report or 
written report or 
presentation. 
presentation. 
Executive summary  Executive summary 
is complete and 
is complete and 
one page or less. 
one page or less 
49‐60 Points 
37‐48 Points 
WACC (NPV and 
WACC (NPV and 
IRR, if applicable) 
IRR, if applicable) 
are included and 
are included with 
calculated 
some significant 
correctly. Financing  but not major 
and other 
errors. Financing 
calculations are 
and other 
included and 
calculations are 
correct. 
included with 1 or 
 
2 errors. 
explained. 
 
25‐36 Points 
Quantitative 
findings are poorly 
stated and not well 
integrated into the 
written report or 
presentation. 
Executive summary 
is deficient. 
 
25‐36 Points 
WACC (NPV and 
IRR, if applicable) 
are included with 
major errors. 
Financing and 
other calculations 
are included with 3 
or 4 errors. 
 
5 Points 
Applies critical 
thinking and 
reasoning skills for 
effective analysis. 
3 Points 
Includes major 
flaws or omissions, 
or numerous minor 
flaws, in 
application of 
critical thinking 
skills. 
3 Points 
Includes major 
flaws or omissions, 
or numerous minor 
flaws, in 
prescribing actions 
to address ethical 
situations. 
3 Points 
Includes major 
flaws or omissions, 
or numerous minor 
flaws, in 
4 Points 
Small number of 
significant but not 
major flaws or 
omissions in 
application of 
critical thinking 
skills. 
5 Points 
4 Points 
Prescribes actions  Small number of 
to effectively 
significant but not 
address a variety of  major flaws or 
ethical situations 
omissions in 
that support social  prescribing actions 
responsibility. 
to address ethical 
situations. 
5 Points 
4 Points 
Demonstrates 
Small number of 
effective leadership  significant but not 
and teamwork 
major flaws or 
skills. 
omissions in 
13‐24 Points 
Quantitative 
findings are not 
present or 
incorrect in the 
written report or 
presentation. 
Executive summary 
is deficient or 
absent. 
13‐24 Points 
WACC (NPV and 
IRR, if applicable) 
are not included. 
Financing and 
other calculations 
are absent or 
included with 5 or 
more errors. 
 
2 Points 
Critical thinking 
and reasoning skills 
are absent or 
ineffective. 
2 Points 
Prescription of 
actions to address 
ethical situations is 
absent or 
ineffective. 
2 Points 
Demonstration of 
leadership and 
teamwork skills is 
absent or 
FIN300 
Portfolio Project Scoring Rubric 

 
Technology 
5 Points 
Selects current 
technology 
applications and 
applies to specific 
problems and 
challenges in the 
work place and 
professional skills. 
Mechanics and Writing 
 
17‐20 Points 
Organization 
Project is clearly 
organized, well 
written, and in 
proper essay 
format including an 
introduction, body, 
and conclusion.  
Conforms to 
project 
requirements. 
 
17‐20 Points 
Grammar and 
Strong sentence 
Style 
and paragraph 
structure; few or 
no minor errors in 
grammar and 
spelling; 
appropriate writing 
style; clear and 
concise with no 
unsupported 
comments. 
 
17‐20 Points 
demonstration of 
leadership and 
teamwork skills. 
4 Points 
Small number of 
significant but not 
major flaws or 
omissions in 
selection of current 
technology 
applications. 
 
demonstration of 
leadership and 
teamwork skills. 
3 Points 
Includes major 
flaws or omissions, 
or numerous minor 
flaws, in selection 
of current 
technology 
applications. 
ineffective. 
13‐16 Points 
Small number of 
significant but not 
major flaws in 
organization and 
writing; is in proper 
essay format. In a 
minor way does 
not conform to 
project 
requirements. 
13‐16 Points 
Small number of 
significant but not 
major errors in 
grammar and 
spelling; generally 
appropriate 
writing. 
9‐12 Points 
Major problems in 
organization and 
writing; does not 
completely follow 
proper essay 
format. In a 
significant way 
does not conform 
to project 
requirements. 
9‐12 Points 
Inconsistent to 
inadequate 
sentence and 
paragraph 
development; work 
needed on 
grammar and 
spelling; does not 
meet program 
expectations. 
5‐8 Points 
Project is not well 
organized or well 
written and is not 
in proper essay 
format. Does not 
conform to project 
requirements. 
13‐16 Points 
9‐12 Points 
5‐8 Points 
2 Points 
Selection of current 
technology 
applications is 
absent or 
ineffective. 
5‐8 Points 
Poor quality; 
unacceptable in 
terms of grammar 
and/or spelling; 
inappropriate 
writing style that 
interferes with 
clarity. 
FIN300 
Portfolio Project Scoring Rubric 

APA 
Includes all items 
listed on APA rubric 
and includes less 
than two APA style 
guide mistakes 
within the paper 
itself. Citations and 
reference page are 
correctly 
formatted. 
Total points possible = 350 
 
Omits up to two 
items listed on APA 
rubric and includes 
less than four APA 
style guide 
mistakes within the 
paper itself. 
Citations and 
reference page are 
correctly formatted 
with minor 
mistakes. 
Omits up to four 
items listed on APA 
rubric and includes 
less than six APA 
style guide 
mistakes within the 
paper itself. 
Citations and 
reference page 
include numerous 
mistakes. 
Omits five or more 
items listed on APA 
rubric and includes 
seven or more APA 
style guide 
mistakes within the 
paper itself. 
Citations and 
reference page are 
incorrectly 
formatted. 

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