Capital Budgeting Techniques

Scenario: A firm has projected free cash flows of S575,000 for Year 1, $625,000 fc Year 2, and 750,000 for Year 3. The projected terminal value at the end of Year 31.1 $8,000,000. The firm's Weighted Average cost of Capital (WACO) is 12.5%. Create a Microsoft® Excel® document, and address the following: • Determine the Discounted Cash Flow (DCF) value of the firm. • Recommend acceptance of this project using net present value criteria. • Display your calculations. Download your statements as .xls files. Refer to http://www.microsoft.com/en-us /default.aspx for Microsoft® Excel® instructions.