Approximately 3-4 double-spaced pages, 4-page max. You must properly cite the article at the...

Question

Approximately 3-4 double-spaced pages, 4-page max. You must properly cite the article at the beginning of your review (author, date, article title, journal publication, pages, etc.). If you obtained a copy via Internet resources, provide explicit instructions on how to obtain the article via the Internet.

Your article being reviewed must come from ascholarly / academicfinance journal(such as those journals listed in the footnotes or suggested readings of the text). To qualify as an academic journal article, it must include a list of citations/references.The key requirement is that the articles MUST address a finance issue/concept, such as those discussed in the course or text.

Your reviewmusthave 5 clearly identified sections, as follows:

#1) Section 1 heading = “Original Work Statement”:Verify the review is original work preparedsolelyfor this class by including the following statement:“I, (insert your name), verify that this article review is solely my own work and creation and it has been prepared solely for credit in this class, and that this review, including the “main issue of the article” section has been written in my own words.”

#2) Section 2 heading = “Article Citation”:provide a full & complete citation of the article being reviewed(author, date, article title, publication title, pages, etc.) and how/where article was accessed; Use APA or similar style. Do NOT copy a long list of information from Proquest or similar database.

#3) Section 3 heading = “Main Issue of Article” -- clearly & succinctly summarize what the MAIN ISSUE of the article is, and the key points regarding that issue. Communicate a clear, simple, straight-forward message that your peers can follow and understand, and learn from. DO NOT “DATA DUMP.”

#4) Section 4 heading = “Relationship to Course” -- clearly state how the article relates to this course: briefly discuss what sections, chapters, and/or concepts of this course are related to this article.

#5) Section 5 heading = “Personal Reflection and Comments” -- your reaction or observationsregarding the content. Indicate what you think of the content, its significance and implications, etc.

The reviews will be evaluated on adherence to the assignment (must have above required sections clearly labeled in the review), the clarity, efficiency, and effectiveness of communication of the main issues, its relevance to this course, the appropriate use of financial terms, the level of thought communicated (particularly with respect to your reaction/observations), grammatical accuracy (spelling, sentence structure), etc.

Tanmoy · Accepted Answer

Scholarly finance journal on Capital budgeting decision and analysis
Original Work Statement
 I, Heather, verify that this article review is solely my own work and creation and it has been prepared solely for credit in this class, and that this review, including the “main issue of the article” section has been written in my own words.
Article Citation 
Charles Alsdorf; March 14th, 2018; The Wall Street Journal; CFO Journal: Deloitte – Capital Allocation: How to recognize bias in your decision making. The article discusses about the decision making conducted on the business executives and the chief financial officers (CFOs) during the capital budgeting of a new project, investment in development or purchase of a new product and equipment and during an acquisition process of another company and states that more than 60% of the finance executives are not confident and certain about the organization’s capability to distribute the capitals optimally. In a Deloitte study, while evaluating the capital expenditure with respect to the return on invested capital (ROIC) it was discovered that there was neither any growth nor increase in the capital expenditure value when measured against ROIC. These are due to some external and internal behavioural science factors due to which such bias and difficulties arises. We will discuss about these factors and its impact on the capital budgeting decision in companies.  	  
Main Issue of Article
The issue of the article states that in more than 60% of the cases, the capital budgeting decision made by the business leaders and the CFO’s is a failure. There reason of such failure is the behavioural factors which are also known as cognitive biases, expert bias and narrow framing of the decisions. These three factors if not decided precisely are enough to make a capital budgeting decision a big breakdown. It has been also researched that the capital is not allocated properly the above behavioural sciences are reflected in the individuals as they become too optimistic towards certain actions, they becomes aligned and relied towards irrelevant and immaterial information and finally the experts try to view the goals from too thin lenses. Thus over a period of 40 years Nobel Prize winners Amos Tversky and Daniel Kahneman, 1974;

Approximately 3-4 double-spaced pages, 4-page max. You must properly cite the article at the beginning of your review (author, date, article title, journal publication, pages, etc.). If you obtained a...

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