Objectives: Introduce the basic concepts of capital budgeting, including cash flow calculation and decision metrics. Determine the cash flows appropriate to consider for a potential project. Forecast a project’s cash flows. Evaluate a project using payback period, net present value (NPV), and internal rate of return (IRR). Raise the issue of how to compare projects with unequal lives. Introduce different types of risk inherent in capital budgeting and how they are incorporated into the analysis. Questions: Should the following be included in Sneaker 2013’s capital budgeting cash flow projection? Why or why not? a.Building a factory and purchase/installation of the equipment b Research and development costs c. Cannibalization of other sneaker sales d. Interest costs e. Changes in current asset/current liabilities accounts f. Taxes g. Cost of goods sold h. Advertising and promotion expenses j. Depreciation charges Attach an Excel Spreadsheet with: Projected cash flows statement for each project. Payback, IRR, and NPV analysis. Does Persistence appear attractive from a quantitative standpoint? Which project do you think is more risky? How do you think you should incorporate differences in risk into your analysis? Which project looks better for New Balance shareholders? Why? Should Rodriguez be more or less critical of cash flow forecasts for Persistence than of cash flow forecasts for Sneaker 2013? Why? What is your final recommendation to Rodriguez?

Assignment 2: Sales Force Compensation For companies that have a mission of selling, a major objective is to motivate the salespeople. While that are many factors that go into motivating these people, one of the primary factors is the compensation plan that describes how they will be rewarded. Research a large organization’s sales force and its compensation plan.Write a five to seven (5-7) page paper in which you: In order to motivate the sales force to produce the highest number of clients, describe six (6) features of an effective total rewards program. Describe the behaviors of the sales force that are targeted with the compensation plan. Assess how a value proposition is achieved for current and future employees in the plan you have outlined. Based upon the type of plan you have created, indicate how attracted you think future salespeople may be to this plan. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: Define total rewards and describe the advantages of a total rewards approach. Analyze an organization’s strategy, workforce, operating environment, and key stakeholders to identify critical factors in designing a total rewards strategy. Use technology and information resources to research issues in total rewards. Write clearly and concisely about total rewards using proper writing mechanics. Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric. Click here to view the grading rubric for this assignment. Points: 150 Assignment 2: Sales Force Compensation Criteria Unacceptable Below 70% F Fair 70-79% C Proficient 80-89% B Exemplary 90-100% A 1. In order to motivate the sales force to produce the highest number of clients, describe six (6) features of an effective total rewards program. Weight: 20% Did not submit or incompletely described six (6) features of an effective total rewards program. Partially described six (6) features of an effective total rewards program. Satisfactorily described six (6) features of an effective total rewards program. Thoroughly described six (6) features of an effective total rewards program. 2. Describe the behaviors of the sales force that are targeted with the compensation plan. Weight: 25% Did not submit or incompletely described the behaviors of the sales force that are targeted with the compensation plan. Partially described the behaviors of the sales force that are targeted with the compensation plan. Satisfactorily described the behaviors of the sales force that are targeted with the compensation plan. Thoroughly described the behaviors of the sales force that are targeted with the compensation plan. 3. Assess how a value proposition is achieved for current and future employees in the plan you have outlined. Weight: 25% Did not submit or incompletely assessed how a value proposition is achieved for current and future employees in the plan you have outlined. Partially assessed how a value proposition is achieved for current and future employees in the plan you have outlined. Satisfactorily assessed how a value proposition is achieved for current and future employees in the plan you have outlined. Thoroughly assessed how a value proposition is achieved for current and future employees in the plan you have outlined. 4. Based upon the type of plan you have created, indicate how attracted you think future salespeople may be to this plan. Weight: 15% Did not submit or incompletely indicated how attracted you think future salespeople may be to this plan. Partially indicated how attracted you think future salespeople may be to this plan. Satisfactorily indicated how attracted you think future salespeople may be to this plan. Thoroughly indicated how attracted you think future salespeople may be to this plan. 5. References Weight: 5% No references provided Does not meet the required number of references; some or all references poor quality choices. Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices. 6. Clarity, writing mechanics, and formatting requirements Weight: 10% More than 6 errors present 5-6 errors present 3-4 errors present 0-2 errors present