Planning for Capital Investments” of Fundamental Managerial Accounting Concepts


For this assignment, refer to the scenario located in “Problems – Series A” section 10-19A of Ch. 10, “Planning for Capital Investments” of Fundamental Managerial Accounting Concepts. This scenario puts you at the task as a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.

Read the scenario in the textbook and complete the activity below.

Use Microsoft® Excel®—showing all work and formulas—to compute the following:

  • Compute the net present value of each project. Round your computations to 2 decimal points.
  • Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points

Create a PowerPoint® presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:

  • Analyze the results of the net present value calculations and the significance of these results, supported with examples. (This means to explain in Writing what the results mean to you or the business management.)
  • Determine which project should be adopted based on the net present value approach and provide rationale for your decision. (This means to explain in Writing what the results mean to you or the business management.)
  • Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples. (This means to explain in Writing what the results mean to you or the business management.)
  • Determine which project should be adopted based on the internal rate of return approach and provide rationale for your decision. (This means to explain in Writing what the results mean to you or the business management, one sentence will not earn many points.)
  • Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected. (This means to explain in Writing what the results mean to you or the business management, one sentence will not earn many points.)
  • Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises. (This means to explain in Writing what the results mean to you or the business management, one sentence will not earn many points.)

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit the Excel spreadsheet along with the presentation.

Just a heads up, you will need to address these questions in more than a bullet point in your Presentation. If you provide a presentation with bullet points only and no verbiage, you will not earn full points for the assignment. You can always provide a written paper along with your presentation if you like or, include your explanations within your PowerPoint presentation.

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