1)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 year’s 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
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
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.
2)Revisit the company you chose for your Week Six Final Project. Using
the annual report and other sources such as a 10k or 10q’s, discuss the
dividend policy of your company.
Answer the following questions as part of your response:
How would you describe your chosen company’s dividend policy?
Why do you believe this company chose the dividend policy they have in place?
Do you agree or disagree that they have selected the best dividend policy for the company?
How might this dividend policy function in both perfect and imperfect capital markets?
Calculate the dividend rate over the past 5 years. Define why
you believe that it has or has not changed over the last 5 years.
Support your position with evidence from the text or external sources.
Your post should be 200-250 words in length.