2023 Applying Risk Methodologies finance Risk Capital Budgeting valuation Methodologies | Assignments Online

     Applying Risk Methodologies                   finance  Risk Capital Budgeting  valuation  Methodologies                Apix is   considering coffee packaging as an additional diversification to its product   line. Here’s information regarding the coffee packaging project:       Initial   investment outlay of $40 million, consisting of $35 million for equipment and   $5 million for net working capital (NWC) (plastic substrate and ink   inventory); NWC recoverable in terminal year   Project   and equipment life: 5 years                  Sales:   $27 million per year for five years                 Assume   gross margin of 50% (exclusive of depreciation)                Depreciation:   Straight-line for tax purposes                 Selling,   general, and administrative expenses: 10% of sales                Tax   rate: 35%                    Assume a   WACC of 10%.                   Should the   coffee packaging project be accepted? Why or why not? Compute the project’s   IRR and NPV.           In addition,   answer the following questions:                 Do   you believe that there was sufficient financial information to make a solid   decision on what to do?            Was   there further financial information that you required that was not provided   to you?             What   financial figure do you believe was the determinant to your decision and why?             How   would you be able to apply this particular financial information to other   situations?             Discuss   risk methodologies used in capital budget.                                     Please   submit 6–12 slides Powerpoint Presentation with 150–200 speaker notes. Please   include references.