I will need 750-1000 words. Also written in APA format.
Mary Francis has just returned to her office after attending preliminary discussions with investment bankers. Her last meeting regarding the intended capital structure of Apix went well and she calls you into her office to discuss the next steps.
We will need to determine the required return for our intended project so that we have a decision criteria defined for the project she says.
Do you have the information I need to describe capital structure and to calculate the weighted average cost of capital (WACC)? you ask.
I do she smiles. We can determine the target WACC for Apix Printing Inc. given these assumptions she says as she hands you a piece of paper that says the following:
Great you say. Thanks.
Be sure to indicate how these costs of capital might be used to determine the feasibility of the capital project Mary says. I want your recommendation about which is more appropriate to apply to project evaluation too. Let me know what you think.
One more thing she says as she stands up to signal the end of the meeting. You did a good job with the explanations that you provided Luke the other day. Would you have time to define marginal cost of capital for me so I can include it in my discussions with investors? You seem to have a knack for making things accessible to nonfinancial folks.
No problem you say. Im glad my explanations are so useful!
For this assignment complete the following:
2 – 3 pages
Details:
The Individual Projects throughout this course will give you an opportunity to put into practice the Project Management concepts you are learning about. For the first week, your mission is to develop a project proposal for an IT project of your choosing. The project you choose should be no more than 1 year in length. The project proposal should include all of the following information:
An Executive Summary (summarizing the other sections contained in the proposal with an overview of the project objectives and benefits).
Project Background (why this project is being proposed).
Objectives (this is the major deliverables and goals for the project)
Justification (both tangible or cost savings and intangible that cannot be monetized)
Summary & Recommendations
Note that more will be added to this Project Proposal next week to build a full Statement of Work.
Adhere to MLA formatting and reference guidelines when writing your response. Additionally, your response should be free of grammatical errors, use complete sentences, and give specific details to support statements.