Instructions Waterways (Chapter 27) For this assignment, you will apply what you have learned from the unit lesson and required unit resources. The Waterways (WP27) case is located on page 27-35 of the textbook. Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return that it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays. This year, Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes. The following information is available to use in deciding whether to purchase the new backhoes. InformationOld BackhoesNew BackhoesPurchase cost when new$90,000$200,000Salvage value now$42,000Investment in major overhaul needed in next year$55,000Salvage value in 8 years$15,000$90,000Remaining life8 years8 yearsNet cash flow generated each year$30,425$43,900 Instructions: In the following methods, evaluate whether to purchase the new equipment or to overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.) Use the net present value method for buying new or keeping the old. Use the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul.) Compare the profitability index for each choice. Compare the internal rate of return for each choice to the required 8% discount rate. Are there any intangible benefits or negatives that would influence this decision? What decision would you make, and why?  

Organizational Behavior – Week #5 Project – Title Page, Outline, & References Page Develop the format and framework for your final project. Your submission should be a single document that includes an outline summarizing the main topics and sub-topics of the final project. Your summary should contain the following topics and sub-topics below as these will be required when organizing your final project. Title Page Table of Contents I. Executive Summary II. Background III. Diagnosis a. Current Situation b. Supporting Data/Analysis IV. Recommendation Intervention V. Applicable Organizational Behavior Concepts VI. References Do not submit your entire paper during Week 5, but rather, summarize in 1-3 paragraphs the key points you will cover in each of the above topic and sub-topic sections. (Note: The description for each of the topics and sub-topics is found under the Week 1 Weekly Content module, under “Review This Week’s Lecture” section, titled “Final Project Preview” link.)