"Management Decision Analysis" 1. Discounted cash flow and budget cut analysis for a long lasting institute. A famous university was planning to prepare a ten-year continuous expenditure as a necessary investment for the renovation of the faculty buildings, i.e., 800 million Yuan per year in the next ten years are required for an extra expenditure beside all other needs of operations of the university. The project committee were considering a budget cut from the "current" annual budget of 7 billion per year. What could be an adequate rate of budget cut that you should want to suggest? Discuss about the influence of the interest rate used in the computation. Requirement: Write a VBA function "AnnuityFactor" to compute annuity factor to be used in the analysis, for skill enhancement

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section: Chapter Questions
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"Management Decision Analysis"
1. Discounted cash flow and budget cut analysis for a long lasting institute.
A famous university was planning to prepare a ten-year continuous expenditure as a
necessary investment for the renovation of the faculty buildings, i.e., 800 million Yuan per
year in the next ten years are required for an extra expenditure beside all other needs of
operations of the university. The project committee were considering a budget cut from
the "current" annual budget of 7 billion per year. What could be an adequate rate of
budget cut that you should want to suggest? Discuss about the influence of the interest
rate used in the computation.
Requirement: Write a VBA function "AnnuityFactor" to compute annuity factor to be used
in the analysis, for skill enhancement
Transcribed Image Text:"Management Decision Analysis" 1. Discounted cash flow and budget cut analysis for a long lasting institute. A famous university was planning to prepare a ten-year continuous expenditure as a necessary investment for the renovation of the faculty buildings, i.e., 800 million Yuan per year in the next ten years are required for an extra expenditure beside all other needs of operations of the university. The project committee were considering a budget cut from the "current" annual budget of 7 billion per year. What could be an adequate rate of budget cut that you should want to suggest? Discuss about the influence of the interest rate used in the computation. Requirement: Write a VBA function "AnnuityFactor" to compute annuity factor to be used in the analysis, for skill enhancement
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