I have been using Duke Energy as the company in this situation Consider the basic facts about a possible renewable energy project that your team’s diversified energy company is considering as an investment and complete the following: Calculate the project’s cash flows, NPV, and IRR in a spreadsheet model. Calculate the cost of capital for the project. Prepare a cash flow statement for the project using the “direct” method. Categorize the diversified energy company’s assets into different risk categories. Estimate a cost of capital or each category of assets. Justify whether this renewable energy project should be undertaken. Knowing that both accounting net income and cash flow are critical financial components of a business, why are they both critical? additional info Its important that you do research and adjust the template to match your situation.  The numbers in the template are made up (a problem I give the teams in group study was used to model this template).  You need to find references to justify your inputs, modify the template to match the life of your project (which is derived from your research) and then make a recommendation based on the outcome of your modified template. The recommendation can be in the excel sheet (about 1 paragraph should do); you do not need a separate apa paper for this weeks work. rubric for assignment Item A B C D F Calculate the Projects cash flows, NPV and IRR in a spreadsheet model. Correct computation of cash flow including depreciation, correct NPV and IRR computations using excel. (18 to 20 pts) Cash flow missing some components such as depreciation, or computed incorrectly, but within reason. NPV and IRR computations appear to follow from cash flows. (16 to 18 pts) Cash flow computation incorrect, missing key elements or major mistakes. NPV or IRR are computed and follow from cash flows. (14 to 16 points) Attempt at cash flow computation, but major flaws in the model or no use of model. Assumptions not reasonable, or make the problem trivial. No or incorrect IRR and NPV. (12 to 14 points) No attempt at cash flow, too many assumed parameters make problem trivial, no attempt at computation of NPV or IRR or unreasonable computations submitted. (11 points and less) Calculate the cost of capital for the project. Correct identification of WACC as cost of capital. Use of BS figures to compute weights, and use of CAPM or DCF file to compute ke. Use of kd from BS reporting with references. (18 to 20 points) Computation as per requirements for A grade, but mistakes in math or minor errors in application of CAPM or DCF model. (16 to 18 points) Computation of WACC attempted, but ke computation not based on CAPM or DCF model. Major errors in application of CAPM or DCF may result in downgrade to this category. (14 to 16 points) Cost of capital not based on WACC, but logic applied that yields a reasonable estimate that may be supported by argument (but which is wrong due to failure to use WACC as Cost.

1. I have been using Duke Energy as the company in this situation
Consider
the basic facts about a possible renewable energy project that
your team’s diversified energy company is considering as an
investment and complete the following:
Calculate the project’s cash flows, NPV, and IRR in a
spreadsheet model.
Calculate the cost of capital for the project.
Prepare a cash flow statement for the project using the “direct”
method.
Categorize the diversified energy company’s assets into
different risk categories.
Estimate a cost of capital or each category of assets.
Justify whether this renewable energy project should be
undertaken.
Knowing that both accounting net income and cash flow are
critical financial components of a business, why are they both
critical?
additional info
Its important that you do research and adjust the template to
match your situation. The numbers in the template are made up
(a problem I give the teams in group study was used to model
this template). You need to find references to justify your
inputs, modify the template to match the life of your project
(which is derived from your research) and then make a
recommendation based on the outcome of your modified
template.
The recommendation can be in the excel sheet (about 1
paragraph should do); you do not need a separate apa paper for
this weeks work.
rubric for assignment

2. Item
A
B
C
D
F
Calculate the Projects cash flows, NPV and IRR in a
spreadsheet model.
Correct computation of cash flow including depreciation,
correct NPV and IRR computations using excel. (18 to 20 pts)
Cash flow missing some components such as depreciation, or
computed incorrectly, but within reason.
NPV and IRR computations appear to follow from cash flows.
(16 to 18 pts)
Cash flow computation incorrect, missing key elements or major
mistakes.
NPV or IRR are computed and follow from cash flows. (14 to
16 points)
Attempt at cash flow computation, but major flaws in the model
or no use of model.
Assumptions not reasonable, or make the problem trivial.
No or incorrect IRR and NPV. (12 to 14 points)
No attempt at cash flow, too many assumed parameters make
problem trivial, no attempt at computation of NPV or IRR or
unreasonable computations submitted. (11 points and less)
Calculate the cost of capital for the project.
Correct identification of WACC as cost of capital.
Use of BS figures to compute weights, and use of CAPM or
DCF file to compute ke.
Use of kd from BS reporting with references. (18 to 20 points)

3. Computation as per requirements for A grade, but mistakes in
math or minor errors in application of CAPM or DCF model.
(16 to 18 points)
Computation of WACC attempted, but ke computation not based
on CAPM or DCF model. Major errors in application of CAPM
or DCF may result in downgrade to this category. (14 to 16
points)
Cost of capital not based on WACC, but logic applied that
yields a reasonable estimate that may be supported by argument
(but which is wrong due to failure to use WACC as Cost of
Capital) (12 to 14 points)
No use of WACC or other arguable method, trivial or incorrect
identification of cost of capital due to misunderstanding of
concept (11 points or less)
Prepare a cash flow statement for the project using the direct
method.
Well documented, reasoned and explained statement in proper
format. (9 to 10 points)
DCF statement prepared, but poor formatting or assumptions
that are not explained. (8 points)
DCF statement with many errors and no formatting, but attempt
at correct method obviously made. (7 points)
DCF statement based on wrong method or not presented so that
it can be followed or understood. (6 points)
No DCF statement or only text on DCF with no computations.
(5 points or less)
Justify weather the project should be undertaken/estimate cost
of capital for assets.
Use of NPV to justify project (9 or 10
points)
Reasonable argument given, but not based on NPV or IRR (8
points)
Anything else (7 or 6
points)

4. Not addressed (1
5 points or less)
Totals