DDBA 8006 · Week 6

DDBA 8006 Week 6 capital request brief example

Contemporary Challenges in Business Walden University Free custom sample in 24 to 48h

A capital request is decided in the first paragraph, so that is where the Week 6 brief for DDBA 8006 puts the amount, the return and the condition. Everything after that paragraph supports one choice at one organization, here whether a molding shop buys a second press or keeps paying overtime, and shows which assumption the answer leans on.

What this page holds

Buy a second press or keep paying overtime: the Week 6 brief answers for one contract molder with an NPV case, a payback figure for the owner, and a condition. Searches like "ddba 8006 week 6 assignment example", "ddba8006 week 6 sample" and "ddba 8006 week 6 example" land here.

What a finished DDBA 8006 Week 6 capital request brief looks like

Three to four pages in briefing format, with a one-page summary on top and two exhibits behind it. The organization is a contract manufacturer of molded plastic parts running its only large press six days a week, and the owner must decide before a customer renewal whether to buy a second press. The summary states the request, the net present value at the firm's hurdle rate, the payback period and the condition: buy only if the largest customer renews for three years. The brief reports payback alongside net present value deliberately; Graham and Harvey (2001), surveying chief financial officers, found payback still widely used beside discounted methods, especially at smaller firms. Exhibits hold the cash-flow model and a sensitivity table showing the result if that customer's volume falls by a third.

How a DDBA 8006 Week 6 example is structured

The summary page carries the decision on its own: the request in dollars, the return, the payback, the condition and the date a yes is needed. A situation section follows, describing current capacity use, the overtime bill and the renewal that makes timing matter. The case section sets out the cash flows over the press's useful life, with every input labeled as quoted, historical or assumed. A method paragraph explains why net present value is the primary measure for this decision and why payback is shown anyway, given who reads the brief. The sensitivity exhibit comes next and holds the argument's weak point in plain view: the result depends on one customer's volume. The alternatives section prices the status quo honestly, including overtime fatigue and turnover. The condition and its trigger close the brief.

The decision fits on one page

An owner reading only the summary knows the amount, the return, the payback, the condition and the deadline. Briefs that save the recommendation for the last page ask a busy reader to finish a document before learning what it wants.

Inputs labeled by origin

The press price is a vendor quote, the overtime cost is from payroll history, and the volume forecast is an assumption. Labeling each input tells the owner which numbers to trust and which to question, and it turns the model into something that can be argued with.

Why two measures appear

Net present value decides, because the press earns over many years and the timing of cash matters. Payback appears too, because it is the measure this owner reads first. The brief explains the choice rather than letting the second measure look like indecision.

The weak point shown, not hidden

One customer supplies much of the volume the press would run. The sensitivity table shows the result if that volume falls by a third, and the brief lets that row shape the recommendation instead of burying it in an appendix.

The status quo priced honestly

Keeping the overtime schedule is an option with costs of its own: premium wages, fatigue, the risk of losing experienced operators. Pricing those keeps the comparison fair, since a status quo costed at zero makes any investment look worse than it is.

Where marks go in DDBA 8006 Week 6

Graders read the summary page first and often decide the recommendation score there. A request, return, payback, condition and deadline on one page satisfy the executive-brief criteria outright, while a brief that builds to its ask loses them. Financial analysis is scored on transparency: inputs labeled by origin, a method whose choice is explained, and figures that reconcile between summary and exhibit. Sensitivity work draws the most analysis credit, because a result depending on one customer's volume is the fact the owner most needs, and briefs that report a lone NPV figure without it read as advocacy. Pricing the status quo is credited separately. Deductions follow unexplained discount rates, mismatched totals, and recommendations that ignore the trade-off between capital locked in and overtime avoided.

Get a DDBA 8006 Week 6 example written to your instructions

Hand over the Week 6 brief instructions and rubric, the investment in question and whatever cost data you are able to pass on, and a capital request brief with its model and sensitivity table follows in 24-48h, the first one free. Name the hurdle rate if your section sets one. Model figures are constructed, not a recommendation about any real purchase.

DDBA 8006 Week 6 questions, answered

Why show payback if net present value is the better measure?

Because this brief has one reader, and that owner has always judged equipment by how fast it pays for itself. Showing payback beside net present value meets the reader where they are while keeping the stronger method as the basis for the decision. The method paragraph says which measure decides and why.

Where does the discount rate come from?

From the organization's cost of capital if it is known, or from a hurdle rate the owner already applies to equipment. For a constructed organization, a stated rate with a one-line justification is enough. A rate that appears without explanation, or one picked afterward because it flatters the result, is where marks go.

Should the brief recommend against the purchase if the sensitivity looks bad?

It should let the sensitivity shape the recommendation, which often means a conditional yes rather than a no. Here the purchase goes ahead only if the largest customer renews, and the brief names the date that condition must be met. A recommendation that ignores its own sensitivity table is the most common way these briefs lose credibility.