### Question Description

**Purpose of Assignment**** **

The purpose of this assignment is for students to employ capital budgeting techniques using time value of money concepts to determine the acceptability of large dollar value assets.

**Assignment Steps**

**Scenario**: A firm has potential project to consider
that has projected free cash flows of $575,000 for Year 1, $625,000 for
Year 2, and 750,000 for Year 3. The projected terminal value at the end
of Year 3 is $8,000,000. The firm's Weighted Average cost of Capital
(WACC) is 12.5%.

If the initial investment required in year one is $7,000,000.

Would you recommend accepting the investment?

**Create** a Microsoft^{®} Excel^{®} document addressing the following:

- Determine the Discounted Cash Flow (DCF) value of the firm.
- Recommend acceptance of this project using net present value criteria.
- Display your calculations.

**Format **assignment consistent with APA guidelines.

## Final Answer

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors