FINCB 571 UP Net Present Value & Payback Period Competency Reflection

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Business Finance

FINCB 571

University of Phoenix

FINCB

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Competency 2 - Reflection Assignment Content Reflection This reflection is comprised of two sections, collectively totaling a minimum of 500 words. Complete your reflection by responding to all prompts. Capital Budgeting Techniques – Net Present Value and Pay back period You are a finance manager for a major utility company. Think about some of the capital budgeting techniques you might use for some upcoming projects. Discuss at least 2 capital budgeting techniques (Net Present Value and Pay back period) and how your company can benefit from the use of these tools. Compare your approaches to other students’ responses. How were they similar or different? Why might you use the different approaches shared by your classmates? Financial Performance Evaluation - Amazon You are writing a book on how to evaluate performance evaluation for a company. Think about some of the influences and measures of company performance that you read about in this module. Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company. Write about how to calculate ROA and PE ratio and how market conditions can affect these metrics. Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company? Submit your reflection.
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OUTLINE
COMPETENCY 2 REFLECTION
Thesis statement: This paper examines how a company can successfully use Net Present Value
and Payback Period in capital budgeting. It also analyzes Amazon's financial performance bases
on PE ratio and Returns on Assets.
I.

Capital Budgeting

II.

Financial Performance Evaluation
A. ROA
B. PE Ratio


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Competency 2 Reflection

Student’s Name:
Institution:
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Competency 2 Reflection
Capital Budgeting
Companies use Net Present Value (NPV) in capital budgeting to measure the profitability
of a potential project or investment (Gaspars-Wieloch, 2017). Technically, the figure depicts the
current value of an upcoming payment...

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