- Create pro forma income statements for each year of the proposed project.
- Create a working capital analysis, showing needed working capital investments for each year of the proposed project.
- Determine the free cash flow expected for each year of the project.
- Calculate the project’s NPV, BCR, and IRR.
- Finally, based on your analysis, briefly explain whether you believe the company should pursue this project and why.
- Be sure your Excel spreadsheet is prepared in a professional manner, with answers clearly indicated and all your calculations shown. Full credit will not be given if your process for arriving at the answer is not fully displayed, including any intermediate steps.
This table lists criteria and criteria group name in the first column. The first row lists level names and includes scores if the rubric uses a numeric scoring method.CriteriaLevel 4Level 3Level 2Level 1Criterion ScorePro Forma Income Statements10 points
You demonstrated a clear understanding of preparing the statements while using the appropriate format and approach.
9 points
You demonstrated competent understanding of preparing the statements, using an appropriate format and approach.
8 points
You demonstrated some understanding of preparing the statements, using an appropriate format and approach.
7 points
(0-7 Points)
You demonstrated little to no understanding of preparing the statements or did not use an appropriate format or approach.
Score of Pro Forma Income Statements,/ 10Working Capital Analysis10 points
You demonstrated a clear understanding of preparing the analysis while using the appropriate format and approach.
9 points
You demonstrated competent understanding of preparing the analysis, using an appropriate format and approach.
8 points
You demonstrated some understanding of preparing the analysis, using an appropriate format and approach.
7 points
(0-7 Points)
You demonstrated little to no understanding of preparing the analysis or did not use an appropriate format or approach.
Score of Working Capital Analysis,/ 10Free Cash Flow Calculations10 points
You demonstrated a clear understanding of performing the calculations while using the appropriate format and approach.
9 points
You demonstrated competent understanding of performing the calculations, using an appropriate format and approach.
8 points
You demonstrated some understanding of performing the calculations, using an appropriate format and approach.
7 points
(0-7 Points)
You demonstrated little to no understanding of how to perform the calculations or did not use an appropriate format or approach.
Score of Free Cash Flow Calculations,/ 10Capital Budgeting Calculations10 points
You demonstrated a clear understanding of performing the calculations while using the appropriate format and approach.
9 points
You demonstrated competent understanding of performing the calculations, using an appropriate format and approach.
8 points
You demonstrated some understanding of performing the calculations, using an appropriate format and approach.
7 points
(0-7 Points)
You demonstrated little to no understanding of how to perform the calculations or did not use an appropriate format or approach.
Score of Capital Budgeting Calculations,/ 10Capital Budgeting Decision10 points
Your evaluation of the capital budgeting decision was correct, clear, detailed, well-founded, and insightful.
9 points
Your evaluation of the capital budgeting decision was correct, clear and well-founded.
8 points
Your evaluation of the capital budgeting decision had minor errors, was not entirely clear, or was not well-founded.
7 points
(0-7 Points)
Your evaluation of the capital budgeting decision had serious errors, was unclear, or was unsupported.
Score of Capital Budgeting Decision,/ 10Rubric Total ScoreTotal/ 50