Capital Investment Evaluation and Standard Cost System
Week 5 Discussions and Required Resources Two-part assignment – All parts must be at least 200 words unless otherwise noted. Please read all attachments and follow ALL instructions. Part 1: Capital Investment Evaluation Select one of the capital investment evaluation methods described in Chapter 10 of your text. Fully explain the capital evaluation method’s strengths and weaknesses. Take a position and defend the use of your selected method. Be sure to use at least two scholarly sources to support your position. Your initial post should be 200-250 words. Part 2: Standard Cost System (Problem 10-41) Grosvenor Industries has designated $1.2 million for capital investment expenditures during the upcoming year. Its cost of capital is 14 percent. Any unused funds will earn the cost of capital rate. The following investment opportunities along with their required investment and estimated net present values have been identified: