# Solution-Problem regarding the investment decision | Homework Help

Investment Decision

Analyze the following scenario: Duncombe Village Golf Course is considering the purchase of new equipment that will cost \$1,200,000 if purchased today and will generate the following cash disbursements and receipts.  Should Duncombe pursue the investment if the cost of capital is 8 percent?  Why?  Clearly label your calculations in your analysis.  You must respond to at least two of your classmates’ postings to receive full credit.

Don't use plagiarized sources. Get Your Custom Essay on
Solution-Problem regarding the investment decision | Homework Help
For \$10/Page 0nly

Year

Cash Receipts

Cash Disbursements

Net Cash Flow

1

1,000,000

500,000

500,000

2

925,000

475,000

450,000

3

800,000

450,000

350,000

4

750,000

430,000

320,000

This class requires you to mathematically solve several financial management problems using simple algebra.  The book has step-by-step explanations and examples.  Two comments about math:

1) Starting with Assignment 1 you are going to need to manipulate numbers and in many cases submit an MS Excel spreadsheet.  In most cases you will also need to submit a short paper about some decision you are recommending.  Treat your papers as if you are writing to a “math phobic” boss, e.g., explain what the math means when reaching you recommendation.

2) Starting with Week 2 the discussion questions have math problems embeIDed.  I know it may be difficult to “discuss” arithmetic, but are a graduate student.  So get creative and get some reasonable 200-word posts in the Dqs.

Calculator

Total price:\$26
Our features