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    Susie's Cakes by Design: Capital Budgeting evaluation for ne

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    As financial manager for Susie's Cakes by Design, your next assignment is to evaluate the feasibility of investing $95,000 in a piece of equipment having a five-year life. In evaluating the proposed project, you have been able to estimate the cash inflows associated with the proposed project as follows:

    Year Amount

    1 20,000
    2 25,000
    3 30,000
    4 35,000
    5 40,000

    You have determined Susie's Cakes by Design cost of capital to be 12%.

    Using the: (1) Payback, (2) Net Present Value, and (3) Internal Rate of Return methods of capital project evaluation, assess the acceptability of the proposed project. Also, based on your findings, what recommendations would you make relative to the implementation of the project? Why?

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    https://brainmass.com/business/capital-budgeting/susies-cakes-design-capital-budgeting-evaluation-327590

    Solution Summary

    This solution is comprised of a detailed explanation to answer what recommendations would you make relative to the implementation of the project.

    $2.19

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