American InterContinental University Effects of Competition on the Market Questions

I’m working on a business discussion question and need an explanation to help me understand better.

Assignment Objectives

Analyze: Conduct a capital budgeting analysis

Examine the opportunities provided by technology for businesses

Minimum Weekly DB Expectations

• Post an original and thoughtful Main Post to the DB prompt.
• Respond to at least 2 other posts from learners and/or the instructor (Response Posts).
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• Two additional responses are required after Friday of each week.
• For DB assignment prompts with a Part One and Part Two, Part One should be addressed in the first week of the unit with a Main Post and minimum of 2 Response Posts, and Part Two should be addressed in the second week of the unit with a Main Post and a minimum of 2 Response Posts.

More on DBs

At the end of each unit, DB participation is assessed based on level of engagement and the quality of the contribution to the discussion. DBs allow learners to learn through sharing ideas and experiences as they relate to course content. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB are accepted after the end of the unit. Learners must demonstrate an appropriate depth of understanding of course content to receive credit for having submitted substantive posts. Typically, this is achieved with 3–4 strong paragraphs for Main Posts and 2–3 strong paragraphs for Response Posts.

Capital investments are the most important decisions made by a firm’s management, because they usually involve large cash outflows and once made are not easily reversed. These are usually long-term projects that will define the firm’s line of business and significantly contribute to the total revenue figure for years to come. Capital investment decisions are often incremental, involving cash flows over multiple periods. Therefore, procedures must be in place to monitor the progress of projects. One such procedure is the Milestone approach.

1. Based on your knowledge concerning capital budgeting, discuss several factors that would increase the risk associated with a company’s capital investment decision. In your opinion explain which factors increase the risk more than others.
2. Based on you knowledge concerning capital budgeting, discuss several factors that would decrease the risk associated with a company’s capital investment decision. In your opinion explain which factors decrease the risk more than others.
3. Capital investment decisions are often incremental, involving cash flows over multiple periods. Therefore, procedures must be in place to monitor the progress of projects. One such procedure is the Milestone approach. Conduct a preliminary search to explain how this approach works and why the approach can sometimes be ineffective.
4. To what extent have you seen evidence, what economic conditions have prompted American businesses to reevaluate their traditional approach to capital investment decisions?