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.

BUSN379 Corporate Finance Course Project – Part I AirJet Best Parts Inc.

BUSN379 Corporate Finance

Course Project – Part I (with supporting calculations)

Competitor company chosen:  Raytheon
Last update: January 21, 2011

Introduction

The Course Project is an opportunity for you to apply concepts learned to a real-life simulation experience. Throughout the Course Project, you will assume that you work as a financial analyst for AirJet Best Parts, Inc.

Part I – In Part I, you work with AirJet Best Parts, Inc. staff to identify the best loan options, as well as to valuate stocks and bonds.

About AirJet Best Parts, Inc.

AirJet Best Parts, Inc. is a company dedicated to the design and manufacturing of aviation and airplane technologies and parts. The company has commercial and military clients worldwide.  

Task 1:  Assessing loan options for AirJet Best Parts, Inc.

Task 2: Evaluating Competitor’s Stock 

Task 3: Bond Evaluation 

Tutorial:  BUSN379 Course Project – Part I AirJet Best Parts Inc.