Assess Investment Options MT480M4: Assess investment options based upon cost of capital and expected returns. Assessment Read the scenario and address all the checklist items. Scenario: A new product...

all details for assignment are attached including grading rubric. Please make sure all checklist items & grading rubric checklist are met, Thanks


Assess Investment Options MT480M4: Assess investment options based upon cost of capital and expected returns. Assessment Read the scenario and address all the checklist items. Scenario: A new product manager presents to you, the Chief Financial Officer, a proposal to expand operations that includes the purchase of a new machine. The product manager is certain that the positive cash flows, which exceed the initial outlay by $20,000 by the end of year 4, will bring both praise and approval. You explain the company uses a 12% discount rate for cash flows and project related budgeting. You take the time to present the details of the Net Present Value (NPV) model used to assess product proposals. The data is below. Project Outflows to Buy Machine              Day 1 Cash Out                           -$70,000 12% discount rate applied. End Year 1 Cash Repayment        $10,000 End Year 2 Cash Repayment        $20,000 End Year 3 Cash Repayment        $30,000 End Year 4 Cash Repayment        $30,000 To educate the new manager, and as CFO, you take the time to evaluate the following: Checklist: · Evaluate how the Time Value of Money concept results in a discounted cash flow in year 4 (an amount less than $30,000). · Assess the investment option using a 12% cost of capital discount rate by applying the NPV model. Include values in your assessment. Provide the NPV at a 12% cost of capital discount rate. Include values in your assessment. · Assess the investment option when a 7% cost of capital discount rate, versus a 12% cost of capital discount rate is applied.  Include values in your assessment. Provides the NPV at a 7% cost of capital discount rate. Submit a 2– 3 page paper with an additional title page in APA format. Submission Requirements · Address all the checklist items. · The main points of the response should be developed and explained clearly with appropriate financial and accounting terminology. · Support all arguments (no errors in logic) in responding to checklist items.  · APA formatting dictates that you use Times New Roman 12-point font, with correct citations, uses Standard English with no spelling or punctuation errors. Grading Rubric Checklist