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June 20, 2025

Capital Budgeting Analysis

Author By Academic Wizard Categories Blog

Capital Budgeting Analysis

create a PowerPoint presentation for a forecasting scenario for Deere & Company using the financial statements in this week’s Required Resources and two outside scholarly or credible sources.

John Deere. (n.d.). Investor relations: SEC filings Links to an external site. https://investor.deere.com/sec-filings/default.aspx. Download the quarterly reports (10Q)

Capital Budgeting Analysis

In your presentation, you must

· list the criteria used to evaluate how cash flows influence capital budgeting decisions,

· identify at least five criteria necessary for making a good capital budgeting recommendation, and

· explain the rationale for considering these criteria before making a recommendation.

The Capital Budgeting PowerPoint Presentation, must be eight to 10 slides in length (not including title and references slides) and formatted according to APA Style.

must include a separate title [page or slide] with the following in title case:

title of presentation in bold font

Space should appear between the title and the rest of the information on the title page.

student’s name

name of institution

course name and number

instructor’s name

Capital Budgeting Analysis

must utilize academic voice.

must use at least two outside scholarly or credible sources in addition to the course text.

 

  • What criteria are used to evaluate how cash flows influence capital budgeting decisions?,

  • What are five key criteria for making a good capital budgeting recommendation?,

  • Why is each criterion important to consider before making a recommendation?,

  • How should forecasting be approached for Deere & Company using their 10-Q statements?,

  • What academic sources support capital budgeting best practices?

Original work only. The paper will be checked by the institution for Plagiarism.

A screenshot of a document AI-generated content may be incorrect.

Capital Budgeting Analysis

Slide 3: Criteria for Evaluating Cash Flows

  • Initial Outlay: Upfront investment required.

  • Net Cash Flows: Expected inflows/outflows from the project.

  • Terminal Value: Expected salvage value or final year cash flows.

  • Risk Adjustments: Accounting for uncertainties in projections.

  • Time Value of Money (TVM): Ensures proper present value calculations.
    (Ross et al., 2022)

Slide 4: Five Key Capital Budgeting Criteria

  1. Net Present Value (NPV) – Measures value creation.

  2. Internal Rate of Return (IRR) – Identifies profitability through return rate.

  3. Payback Period – Evaluates how fast investment is recovered.

  4. Profitability Index (PI) – Compares value created per dollar invested.

  5. Accounting Rate of Return (ARR) – Gauges efficiency via income-based return.

Slide 5: Rationale Behind Each Criterion

  • NPV: Accounts for TVM and directly measures added value.

  • IRR: Useful for comparing projects with similar scale.

  • Payback Period: Indicates liquidity risk and short-term recovery.

  • PI: Helps rank multiple projects under capital constraints.

  • ARR: Simple and based on accounting profits, used in preliminary analysis.
    (Brealey, Myers, & Allen, 2020)

Slide 6: Applying Capital Budgeting to Deere & Company

  • Analyzed 10-Q filings (Q1 2025) to identify investment opportunities.

  • Evaluated capital expenditure trends and earnings forecasts.

  • Focused on machinery segment expansion given strong

How should forecasting be approached for Deere & Company using their 10-Q statements?, What academic sources support capital budgeting best practices?, What are five key criteria for making a good capital budgeting recommendation?, What criteria are used to evaluate how cash flows influence capital budgeting decisions?, Why is each criterion important to consider before making a recommendation?