1A. Read the journal article, â€œBusinesses Seeking Working Capital-Survey (Links to an external site.).â€ Based on the information presented in the article, discuss the following:
- How should a business use working capital analysis?
- Which is more important to the short-term lender: the stock of cash or the flow of cash?
- Is it possible in today’s business to operate with no current liabilities?(300 Words)
1B. Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing. Which do you think is better? Why? Provide examples and evidence from two articles from ProQuest to support your position. Your post should be 300 words in length.
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1C. Critically reflect on the importance of capital budgeting. Why is this such a heated subject in many boardrooms? How does capital budgeting promote the financial health of an organization? How will you use the financial techniques you have learned this week to promote the financial health of your organization? (300 words)
2.It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:
- Describe his working capital practices, including his methods of capital budgeting analysis techniques.
- Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.
- Develop a simple statement of cash flows for Georgeâ€™s Trains using any information gleaned from the video. What areas of improvement do you recommend? Provide at least three references from the Ashford University Library or other scholarly sources to support your recommendations.
In a three- to five-page paper (excluding the title and reference pages), respond to Georgeâ€™s request for advice in detail. The paper should be properly formatted in alignment with APA 6th edition formatting.