Home > Evaluation Of Capital Projects
Evaluation Of Capital Projects
Use capital budgeting tools to determine the quality of three proposed investment projects, and prepare a 6-8 page report that analyzes your computations and recommends the project that will bring the most value to the company
Introduction
This assessment is about one of the basic functions of the finance manager, which is allocating capital to areas that will increase shareholder value and add the most value to the company. This means forecasting the projected cash flows of the projects and employing capital budgeting metrics to determine which project, given the forecast cash flows, gives the firm the best chance to maximize shareholder value. As a finance professional, you are expected to:
- Use capital budgeting tools to compute future project cash flows and compare them to upfront costs.
- Evaluate capital projects and make appropriate decision recommendations.
- Prepare reports and present the evaluation in a way that finance and non-finance stakeholders can understand.
Scenario
Senior leadership has now called upon you to analyze three capital project requests based on forecasted cash flow as they relate to maximizing shareholder value
