Calculation of Weights No Calculations or Explanations Calculation using book values for weights Correct Calculation using Market Rates with NO Explanation Correct Calculation using Market Rates with Explanation 2 Cost of Debt No Calculations or Explanations Incorrect Calculation, Brief Explanation, Reasonable estimate Correct Calculation based on YTM with Explanation 1 Cost of Equity Beta No Calculations or Explanations Reasonable Estimate of Beta based on information provided online (i.e Yahoo Finance) but No Explanation Correct Estimate of Beta based on online data with Explanation 1 Expected Market Return No Calculations or Explanations Estimate for Market Return is not reasonable based on historical market performance Explanation of Expected Returns based on historical returns with reasonable estimate 1 Risk-free Rate No Calculations or Explanations Estimate not based on current Treasury yields but reasonable no explanation Explanation of Risk free rate based on current T-bond or Tbill yield 1 WACC Calculation No Calculations or Explanations Incorrect Calculation with minor errors carried through from above assumptions with no explanation Incorrect Calculation with minor errors carried through from above assumptions with explanation Correct Cacluation with Explanation of all parameters 2 Total Possible Points from WACC calculation portion of project 8 Cash Flow Calc 0 1 2 4 Total Possible Points Initial Cash Flows No Calculations or Explanations Partially correct CFs All initial CFs properly identified with brief explanation 2 Operating CFs No Calculations or Explanations Few OCFs properly identified with no explanation Most OCFs properly identified with brief explanation All OCFs properly identified with brief explanation of all calculations (ie taxes & depr properly accounted for) 4 Terminal CFs No Calculations or Explanations Partially correct CFs no tax adjustments All terminal after tax CFs properly identified with brief explanation 2 75/25 D/E Split No Calculations or Explanations Partial Calculations All PV of Cash Flows correctly calculated and Justification for use of NPV technique 2.5 25/75 D/E Split No Calculations or Explanations Partial Calculations All PV of Cash Flows correctly calculated and Explantion for underlying assumptions of case 2.5 Total Possible Points from Cash Flow portion of project 13 0 1 2 3 Create NPV Profile for Varying Debt/WACC No Calculations or Explanations No Graph, Partial Calculations, Partial Explanation Graph is mostly correct with Partial Explanation Graph is correct with all axis properly labled with Explanation 3 Final Decision by Case: Accept or Reject Final Decision is Incorrect or Not Stated Final Decision is correct with limited or no explanation of basis of decision and all assumptions Final Decision is correct with partial explanation of basis of decision and all assumptions Final Decision is correct with thorough explanation of basis of decision and all assumptions 3 Presentation Unorganized difficult to follow with spelling and grammar errors Somewhat difficult to find some information and some disorder gramar and spelling errors Very Organized, Neat, and Easy for reader to follow with all inputs and assumptions not clearly identified in one area Very Organized, Neat, and Easy for reader to follow with all inputs and assumptions clearly identified in one area 3 Total Possible Points from NPV Profiles and Presentation portion of projec