Week 4 Assignment – Planning for Capital Investments
Overview
Determining the viability of a long-term
capital investment is a fundamental aspect of corporate accounting. In
this assignment, you use Excel to make and interpret specified
calculations for a capital investment analysis that includes sensitivity
and what-if analyses for a proposed football training facility.
Instructions
Read the following scenario and use the Week 4 Assignment Template [XLSX] to complete this assignment.
Specific directions are included in the template. Make sure to
complete all tabs for Parts 1 and 2 and follow the directions given in
each.
Note that you must add functionality to the appropriate spreadsheets to make the proper calculations.
Scenario
Use the following to scenario for your work:
Kicking It Corp. is planning to open a
football camp in Arizona, which will require a land purchase and
facilities development that includes fields, sleeping and dining
facilities, maintenance equipment and other capital expenditures. Each
year, the camp will run for eight one-week sessions. The company will
also incur operational expenses.
The estimates in the following table have been shared with company leadership and investors:
Estimated Figures
Item
Amount
Land
$300,000
Facilities
$600,000
Annual Cash Flow (150 total yearly players’ fees)
$920,000
Annual Cash Outflows
$840,000
Estimated Useful Life of Facilities
20 years
Facilities Salvage Value
$1,500,000
Discount Rate
8%
This course requires the use of Strayer
Writing Standards. For assistance and information, please refer to the
Strayer Writing Standards link in the left-hand menu of your course.
Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Create financial reports, charts, graphs, and what-if analyses using Excel.

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