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Module 2: Critical Thinking

Points 120
Critical Thinking Assignment (120 Points)
Choose one of the following two assignments to complete this week. Do not do both
Option #1: NPV
Review the following data concerning the amount of capital investment and return of investment
for two alternative projects.
Project/
0
1
2
3
4
Year
A
-\$124,000 \$32,000 \$44,000
\$50,000
\$50,000
B
-\$211,000 \$72,000 \$75,000
\$77,000
\$80,000
Use Excel to calculate the NPV values for the two projects with the discount rates of 5%, 15%
and 20% using proper formula in Excel.
Provide a two-page narrative to:
1. Describe the steps you took to calculate the NPV values
3. Specify which project you would select for each of the discount rates of 5%, 15%, and
20%.
Include an excerpt (showing your calculations and outcomes) from your Excel file in your
narrative and specify the formula you used.
Be sure to organize your writing properly and include the following:
• Cover page
• Introduction
• Analysis and recommendations
• Conclusion
• List
of references.
organize the paper. Please note that Lynda.com is a great resource to learn how Excel can be
used to utilize economic models (e.g., NPV, IRR).
Support your assignment with a minimum of three scholarly references. The CSU-Global library
is a good place to locate these sources. The written section should follow the CSU-Global Guide
to Writing and APA (Links to an external site.).
Option #2: IRR
Review the following data concerning the amount of capital investment and return of investment
for two alternative projects.
Project/
0
1
2
3
4
Year
A
-\$124,000 \$32,000 \$44,000
\$50,000
\$50,000
B
-\$211,000 \$72,000 \$75,000
\$77,000
\$80,000
Use Excel to calculate the IRR values for the two projects. Explain if choosing different discount
rates of 5%, 15% and 20% will make a difference in the results.
Provide a two-page narrative to:
1. Describe the steps you took to calculate the IRR values
3. Specify which project you would choose.
Include an excerpt (showing your calculations and outcomes) from your Excel file in your
narrative and specify the formula you used.
Be sure to organize your writing properly and include the following:
• Cover page
• Introduction
• Analysis and recommendations
• Conclusion
• List of references.
organize the paper. Please note that Lynda.com is a great resource to learn how Excel can be
used to utilize economic models (e.g., NPV, IRR).
Support your assignment with a minimum of three scholarly references. The CSU-Global library
is a good place to locate these sources. The written section should follow the CSU-Global Guide
to Writing and APA (Links to an external site.).
Rubric
PJM380 Mod 2 CT
Criteria
20.0 to >16.0 pts
Meets
This criterion is
Expectation
Includes all of
Learning Outcome the required
Requirements
components, as
specified in the
assignment.
PJM380 Mod 2 CT
Ratings
16.0 to >12.0 pts
Approaches
Expectation
Includes most of
the required
components, as
specified in the
assignment.
Pts
12.0 to >8.0 pts
Below
Expectation
Includes some of
the required
components, as
specified in the
assignment.
8.0 to >0 pts
Limited
Evidence
Includes few of
the required
components, as
specified in the
assignment.
20.0
pts
30.0 to >24.0 pts
Meets Expectation
Demonstrates
This criterion is
knowledge of the
Learning Outcome materials; correctly
Content
represents
knowledge from
sources.
24.0 to >18.0 pts
Approaches
Expectation
Some significant
but not major
errors or
omissions in
demonstration of
knowledge.
18.0 to >12.0
pts
Below
Expectation
Major errors or
omissions in
demonstration
of knowledge.
12.0 to >0 pts
Limited
Evidence
30.0
Fails to
pts
demonstrate
knowledge of
the materials.
20.0 to >16.0 pts
This criterion is
Meets Expectation
Demonstrates
Problem Solving thought and insight
in problem solving.
16.0 to >12.0 pts
Approaches
Expectation
Some significant
but not major
errors or
omissions in
problem solving.
12.0 to >8.0
pts
Below
Expectation
Major errors or
omissions in
problem
solving.
8.0 to >0 pts
Limited
Evidence
Fails to
demonstrate
problem
solving.
20.0 to >16.0 pts
Meets
This criterion is
Expectation
Provides a
Learning Outcome
strong critical
Critical Analysis
analysis and
interpretation of
16.0 to >12.0 pts
Approaches
Expectation
Some significant
but not major
errors or
omissions in
12.0 to >8.0 pts
Below
Expectation
Major errors or
omissions in
analysis and
interpretation.
20.0
pts
8.0 to >0 pts
Limited
Evidence
20.0
Fails to provide
pts
critical analysis
and
interpretation of
PJM380 Mod 2 CT
Ratings
Criteria
the information analysis and
given.
interpretation.
10.0 to >8.0 pts
Meets Expectation
This criterion is
Cites and
integrates at least
Learning Outcome three credible
Sources
sources, as
specified in
description.
10.0 to >8.0 pts
Meets
Expectation
Project is
This criterion is
clearly
organized, well
Learning Outcome written, and in
Demonstrates
proper format,
college-level
as outlined in
proficiency in
the assignment.
organization,
Strong sentence
grammar and style. and paragraph
structure; few
errors in
grammar and
spelling.
the information
given.
8.0 to >6.0 pts
Approaches
Expectation
Cites and
integrates two
credible sources,
as specified in
description.
6.0 to >4.0 pts
Below
Expectation
Cites and
integrates one
credible source,
as specified in
description.
8.0 to >6.0 pts
Approaches
6.0 to >4.0 pts
Expectation
Below
Project is fairly
Expectation
well organized
Project is poorly
and written and
organized; does
is in proper
format, as
paper format.
outlined in the
Inconsistent to
assignment.
Reasonably good
sentence and
sentence and
paragraph
paragraph
development;
structure;
numerous errors
significant
in grammar and
number of errors
spelling.
in grammar and
spelling.
8.0 to >6.0 pts
10.0 to >8.0 pts
Approaches
Meets
Expectation
Expectation
Few errors in
This criterion is
Project contains
APA formatting,
proper APA
according to the
Learning Outcome formatting,
CSU-Global
Demonstrates
according to the
Guide to Writing
proper use of APA CSU-Global
and APA, with
style.
Guide to Writing
no more than
and APA, with
two to three
no more than one
significant
significant error.
errors.
Pts
4.0 to >0 pts
Limited
Evidence
10.0
Cites and
pts
integrates no
credible
sources.
4.0 to >0 pts
Limited
Evidence
Project is not
organized or
well written and
is not in proper 10.0
paper format.
pts
Poor quality
work;
unacceptable in
terms of
grammar and
spelling.
4.0 to >0 pts
6.0 to >4.0 pts
Limited
Below
Evidence
Expectation
Numerous
Significant
errors in APA
errors in APA
formatting,
formatting,
according to the 10.0
according to the
CSU-Global
pts
CSU-Global
Guide to
Guide to Writing
Writing and
and APA, with
APA, with more
four to five
than five
significant
significant
errors.
errors.
Criteria
Total Points: 120.0
PJM380 Mod 2 CT
Ratings
Pts