Capital Budgeting Case: Nima One
Capital Budgeting Case: Nima One
(1) Read the attached case study about Nima One.
(2) Answer each case question and submit evidence of all calculations toward any numerical support for your conclusions.
Skills
- Compare capital funding methods and sources.
- Apply the weighted average cost of capital (WACC) formula to a project’s cost of capital.
- Calculate cash flows on capital budget projects.
- Evaluate investment opportunities using various techniques such as net present value (NPV), internal rate of return (IRR), and payback period.
- Describe risk in capital budgeting and strategies, such as sensitivity analysis, scenario analysis, and risk adjusted discount rate.
- Assess decisions that affect the capital structure.
- Evaluate a firm’s capital budgeting policies, planning, structure, and cost.