Business Finance Homework Help

I’m working on a accounting question and need an explanation and answer to help me learn.

We all have worked for a company that has made a major capital investment, or what the book calls Strategic Investment Decisions. Whether it was to buy a truck, but another company, or change its product line – the key to these decision is that they affect more than one year and in some cases decades. Consequently, the Time Value of Money should be considered.

For this week’s discussion, similar to the assignment; describe a capital expenditures for a company you work, or have worked for in the past, and discuss if you think they actually used a process including TVM to make the long-term capital expenditure decision. And if they did, how do you think they determine the variables such as interest rate, number of years etc Or was it just a simple payback period or some other method? Obviously, in most cases you will have to make some guesses for this discussion!