Capital Budgeting and Risk Analysis” Please respond to the following:
•* From the e-Activity, analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low. Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2). •* From the scenario, take a position for or against TFC’s decision to expand to the West Coast. Provide a rationale for your response in which you cite at least two (2) capital budgeting techniques (e.g., NPV, IRR, Payback Period, etc.) that you used to arrive at your decision.
Year StockPrice Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 9.65 1.05 2009 17.06 1.35 90.00 3.38 8.40 3.42 2008 11.44 1.28 83.63 3.00 7.05 8.96 1. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average annual returns for the two stocks and the index. (Hint: Remember, returns
