Project 5: Cost of Capital, Risk/Return, and Capital Budgeting
Step 5: Prepare the Analysis Report for Project 5

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You have developed an in-depth understanding of LGI’s operating efficiency related to costing and how that impacts the bottom line. You feel confident that your investment choices will positively boost LGI’s productivity and improve the company’s operations. Thanks to your efforts, the company will have a plan for financing its investments appropriately. LGI will finally be on a path of a sustainable future. Answer the questions in the 
Project 5 Questions – Report Template document. Prepare your analysis report including recommendations for how the company can improve its financial situation.

Complete the analysis report:

· Download the 
Project 5 Questions – Report Template

· Read the instructions.

· Answer all the questions.

· Include your recommendations.

· Submit the analysis report (Word document) and analysis calculation (Excel file) to the dropbox as your final deliverable at the end of Week 10. Label your files as follows:

· P5_Final_lastname_Report_date.docx

· P5_Final_lastname_Calculation_date.xlsx

Check Your Evaluation Criteria

Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them. To view the complete grading rubric, click My Tools, select Assignments from the drop-down menu, and then click the project title.

· 3.1: Identify numerical or mathematical information that is relevant in a problem or situation.

· 3.2: Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.

· 3.3: Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.

· 10.4: Make strategic managerial decisions for obtaining capital required for achieving organizational goals.

Learning Resource List

Learning Resource List for MBA 620

The learning resource list is a complete record of the required and recommended reading for MBA 620. The list is categorized by project and by resource (book).  

Project #5

Required Reading 

Parrino, R., Kidwell, D., & Bates T. (2011
). 

Fundamentals of corporate finance
 (2nd ed.). Wiley.

Chapter 7: Risk and Return 

· Sections 7.1 to 7.7 

Chapter 10: The Fundamentals of Capital Budgeting 

· Sections 10.1 to 10.6 

Chapter 13: The Cost of Capital 

· Sections 13.1 to 13.4 

Recommended Reading  

Clayman, M. R., Fridson, M. S., & Troughton, G. H. (2012). 

Corporate finance: A practical approach 
(2nd ed.). Wiley. 

Learning Resource List for MBA 620 by Book

Required Reading 

Parrino, R., Kidwell, D., & Bates T. (2011
). 

Fundamentals of corporate finance
 (2nd ed.). Wiley.

Chapter 3: Financial Statements, Cash Flows, and Taxes  

· Section 3.1 to 3.6 

Chapter 4: Analyzing Financial Statements 

Sections 4.1 to 4.6 

Chapter 5: The Time Value of Money 

· Sections 5.1 to 5.4 

Chapter 6: Discounted Cash Flows and Valuation  

· Sections 6.1 to 6.4 

Webster, T. J. (2015). 
Managerial economics: tools for analyzing business strategy. Lexington Books.

Chapter 2: Demand and Supply  

· Pages 21–50 

Chapter 3: Elasticity 

· Pages 55–72 

Chapter 7: Industry Organization 

· Pages 169–177 

Davis, C. E., & Davis, E. (2011). 

Managerial accounting
. Wiley.

Chapter 3: Cost-Volume-Profit Analysis and Pricing Decisions

· Section 3.1 to 3.3 

Chapter 7: Activity-Based Costing and Activity-Based Management 

· Sections 7.1–7.2 

Parrino, R., Kidwell, D., & Bates T. (2011
). 

Fundamentals of corporate finance
 (2nd ed.). Wiley.

Chapter 7: Risk and Return

· Sections 7.1 to 7.7

Chapter 10: The Fundamentals of Capital Budgeting

· Sections 10.1 to 10.6 

Chapter 13: The Cost of Capital 

· Sections 13.1 to 13.4

Recommended Reading  

Davis, C. E., & Davis, E. (2011). 

Managerial accounting
. Wiley.

Chapter 2: Cost Behavior and Cost Estimation  

· Sections 2.1–2.3

Chapter 9: Capital Budgeting 

Chapter 12: Financial Statement Analysis

Chapter 13: Statement of Cash Flows

The Saylor Foundation. (2012). 
Principles of managerial economics (v. 1.0).

Chapter 1: Introduction to Managerial Economics 

Chapter 2: Key Measures and Relationships    

Chapter 3: Demand and Pricing      

Chapter 4: Cost and Production  

Clayman, M. R., Fridson, M. S., & Troughton, G. H. (2012). 

Corporate finance: A practical approach 
(2nd ed.). Wiley.

Chapter 2: Capital Budgeting

Chapter 3: Cost of Capital

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