Business Finance Homework Help

Part 1

400–600 words

Respond to the scenario below with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

Eddison Electronic Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. The Operations department is thinking about making a capital investment this current year. Prepare a memo to the VP of Accounting at EEC that answers the questions below based on the following criteria:

• EEC expects to save $500,000 per year for the next 10 years by purchasing the supplier.
• EEC’s cost of capital is 14%.
• EEC believes it can purchase the supplier for $2 million.

In your memo to the VP of Accounting, answer the following questions:

• What are the advantageous and disadvantages to each investing method (NPV, IRR, or payback period)?
• Which of the methods (NPV, IRR, or payback period) should EEC use, and why?
• Would your answer be the same if EEC’s cost of capital were 25%? Why or why not?
• Would your answer be the same if EEC did not save $500,000 per year as anticipated?
• What would be the least amount of savings that would make this investment attractive to EEC?
• Based on your calculations, should EEC acquire the supplier? Why or why not?
• References

Part 2

5–7 slides (+ title and reference slides); Speaker notes of 150–200 words

Respond to the scenario below with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

Eddison Electronic Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. You have been tasked as a team lead on a team that will construct a balanced scorecard presentation for the department. Please create a PowerPoint presentation of 5–7 slides that discusses the following:

• What are the key components of a balanced scorecard?
• In what ways can the balanced scorecard benefit the organization in the strategic decision-making process and influence ROI?
• What are the ethical issues that could be associated with the four key components of the balanced scorecard?
• References