BUSN379 Corporate Finance Course Project Part II: AirJet Best Parts, Inc. (100% Original and Correct)

BUSN379 Corporate Finance 

Course Project Part II (with supporting calculations)

Competitor company chosen:  Raytheon (updated as of May 16, 2011)

Introduction

Part II – In Part II, you will provide the company with a recommendation for purchasing a new machine. You will base your recommendation on the Net Present Value (NPV) of the capital investment project using the cost of capital (WACC) as your discount rate.

You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company is considering a capital investment in a new machine and you are in charge of making a recommendation on the purchase based on (1) a given rate of return of 15% (Task 4) and (2) the firm’s cost of capital (Task 5). 

Task 4. Capital Budgeting for a New Machine  

Task 5: Cost of Capital 

BUSN379 Course Project Part II:  AirJet Best Parts, Inc.