Topic1: Monitoring the Cost of Money: Interest Rates
Interest rates, the cost of money, influence most factors related to personal and corporate capital budgeting.
You are the CFO of a company. There is new robotic equipment you want to buy. Your net present value (NPV) study shows that the new equipment will add new free cash flows to the company above the discount rate used in your NPV study. However, you have noticed that the market is indicating that the cost of capital is expected drop in the future.
Would you, as the CFO, finance your projects as soon as possible if cost of capital was expected to drop? Please explain.
What are the opportunity costs you must consider in this decision?
More importantly, where do you find the information to analyze expected changes in interest rates?
Your initial discussion post must include one outside resource which may include the Internet or Library, and must be cited according to current APA formatting.
Topic2: The Online Focus Group
Increasingly, companies are conducting online research. However, it is not always effective or easy. You will do some research concerning focus groups and then address the following Discussion topics.
You have decided to conduct an online focus group to determine participants’ reactions to a new _____ (fill in the blank with a product of choice not related to the scenarios provided).
What will you need to plan, arrange, and communicate in order to conduct this online focus group successfully?
What possible problems could arise, and how will they be handled?
What are the pros and cons of conducting this type of research?
