Tag: Analysis of capital investment projects.

PART A:
You will give the CEO a recommendation of which one is the best proposal to choose with an explanation you must support your recommendation to give the CEO evidence from the calculation on the excel sheet (payback, NPV, IRR)
Hint: Payback is nothing about risk its only give which year they can payback the exact payback year, IRR only help to get a percentage to show if the percentage is greater than discount rate so they have to except the project or not, NPV is the most important reliable risk because it give us idea of accepted profit for the project so your decision must rely on NPV but also you have to explain the whole idea.

Write a report to your CEO about the financial health of the company:
a.Complete financial statements Analysis report to the CEO
b. Recommendation as to which proposal should be adopted in each scenario and the reasons for your recommendation in order to address his concerns and convince him of your choice.

PART B:
CEO has particular discussed his worries/ concerns of the recent economic conditions and his speculation is that operating cost might increase by 10% than expected and revenue might decrease by 5% than the expected! (check the excel sheet name: calculation with change)
NOTE: In the second calculation with changes you have to check whether your decision will change? If yes- why?

Write a report to your CEO about the financial health of the company:
a.Complete financial statements Analysis report to the CEO
b. Recommendation as to which proposal should be adopted in each scenario and the reasons for your recommendation in order to address his concerns and convince him of your choice.
Do not forget that selection of the project also depends upon the sensible financial analysis of the last two year’s financial statements of the company. You can convince your boss with sound financial analysis and sensible arguments! p(5)