Explore corporate resource allocation in a budget-constrained, multi-year setting
Analyze the impact of capital rationing on capital investment choices
Interpret core approaches in investment analysis: NPV, IRR, Payback Period, and Profitability Index
Apply risk-adjusted discount rates in project investment analysis
Examine the effects of capital budgeting decisions on a company’s performance and market position
Observe the impact of real options and project interdependencies
Demonstrate why rule-based decisions may not guarantee an optimal solution
Classify investment projects on the basis of how they influence the investment decision process; that is, mutually exclusive projects, contingent projects.
Explore the strategic implications of the resource-allocation process in positioning a company for the future.
Examine the relationship between investment choice and long-term shareholder value
For this assignment, you will perform the following tasks.1. In a Word document, create a table to display your annual investment projects, from year 1 to year 5. You may find this information from the simulation, in the Decision History tab – your decision history. You may choose to use one Table with 5 sections, from year 1 to year 5. Alternatively, you can create five separate Tables.2. Based on your knowledge of the company and the simulation, answer the following questions:Capital Investment Assignment
What strategy(es) did you use to select investment projects? (To answer this question, explain your invest decisions – why did you invest the way you did?)
What investment decision criteria did you employ? Why?
How will New Heritage Succeed? In other words, what does the company need to do to succeed?
What is the role of each department/division of the company? Explain how are these roles related?
Why is the company’s capital budget constrained?
What are the effects of budgetary constraint on the company’s capital budgeting process and growth?
How can serious games and simulations enhance the student learning experience:Capital Investment Assignment