Create an Excel spreadsheet in which you use capital budgeting tools to determin

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Create an Excel spreadsheet in which you use capital budgeting tools to determine the quality of 3 proposed investment projects, as well as a 6-8 page report that analyzes your computations and recommends the project that will bring the most value to the company.
Introduction
This portfolio work project is about one of the basic functions of the finance manager: allocating capital to areas that will increase shareholder value. There are many uses of cash managers can select from, but it is essential that the selected projects are ones that 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 business 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
You work as a finance manager for Drill Tech, Inc., a mid-sized manufacturing company located in Minnesota. Three capital project requests were identified as potential projects for the company to pursue in the upcoming fiscal year. In the meeting to discuss capital projects, the director of finance (and your boss), Jennifer Davidson, gives you a synopsis of the projects along with this question: Which one of these projects will provide the most shareholder value to the company?
She also tells you that other than what is noted in each project scenario, all other costs will remain constant, and you should remember to only evaluate the incremental changes to cash flows.
The proposed projects for you to review are as follows.
Project A: Major Equipment Purchase
A new major equipment purchase, which will cost $10 million; however, it is projected to reduce cost of sales by 5% per year for 8 years.
The equipment is projected to be sold for salvage value estimated to be $500,000 at the end of year 8.
Being a relatively safe investment, the required rate of return of the project is 8%.
The equipment will be depreciated at a MACRS 7-year schedule.
Annual sales for year 1 are projected at $20 million and should stay the same per year for 8 years.
Before this project, cost of sales has been 60%.
The marginal corporate tax rate is presumed to be 25%.
Project B: Expansion into Europe
Expansion into Western Europe has a forecast to increase sales/revenues and cost of sales by 10% per year for 5 years.
Annual sales for the previous year were $20 million.
Start-up costs are projected to be $7 million and an upfront needed investment in net working capital of $1 million. The working capital amount will be recouped at the end of year 5.
Because of the higher European tax rate, the marginal corporate tax rate is presumed to be 30%.
Being a risky investment, the required rate of return of the project is 12%.
Project C: Marketing/Advertising Campaign
A major new marketing/advertising campaign, which will cost $2 million per year and last 6 years.
It is forecast that the campaign will increase sales/revenues and costs of sales by 15% per year.
Annual sales for the previous year were $20 million.
The marginal corporate tax rate is presumed to be 25%.
Being a moderate risk investment, the required rate of return of the project is 10%.
Your Role
You are a finance manager at Drill Tech, Inc., who plays a major role in reviewing capital project requests.
Requirements
Jennifer reiterates that your report is critical for the company to select the project that will bring the most value to shareholders. Your calculations and report should address these items for her and other stakeholders:
Apply computations of capital budgeting methods to determine the quality of the proposed investments.
Use budgeting tools to compute future project cash flows and compare them to upfront costs. Remember to only evaluate the incremental changes to cash flows.
Demonstrate knowledge of a variety of capital budgeting tools including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). The analysis of the capital projects will need to be correctly computed and the resulting decisions rational.
Evaluate the capital projects using data analysis and applicable metrics that align to the business goal of maximizing shareholder value.
Evaluate capital projects and make appropriate decision recommendations. Accurately compare the indicated projects with correct computations of capital budgeting tools and then make rational decisions based on the findings.
Select the best capital project, based on data analysis and evaluation, that will add the most value for the company.
Prepare an appropriate evaluation report for requestors, using sound research and data to defend your decision.
Justify your decision with a clear analysis showing the findings of the analysis and which project has the best chance to increase shareholder value.
Use your calculations and data to provide a clear picture of why your recommendation is the right one. This goes beyond just regurgitating the data. Think about how the data can tell the story that will be meaningful to the readers.
Deliverable Format
For this assessment, create two deliverables:
An Excel spreadsheet showing the required cash flow forecasts and capital budgeting tool calculations for each project. Use the same spreadsheet but create separate tabs for each project.
A report providing an analysis of the computations, the project selection decision, and justification for the decision, as well as its impact on the value of the firm. The project selection decision must have an analytical rationale to support it.
Report requirements:
Ensure written communication is free of errors that detract from the overall message and quality.
Use at least three scholarly resources.
Your report should be between 6 and 8 pages.
Use 12 point, Times New Roman.
Related company standards:
Your report is a professional document and should follow the corresponding MBA Academic and Professional Document Guidelines (found in the MBA Program Resources), including single-spaced paragraphs.
Use APA-formatted references.
Evaluation
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
Competency 1: Apply the theories, models, and practices of finance to the financial management of an organization.
Apply computations of capital budgeting methods to determine the quality of the proposed investments.
Competency 2: Analyze financing strategies to maximize stakeholder value.
Evaluate the capital projects using data analysis and applicable metrics that aligns to the business goals.
Competency 3: Apply financial analyses to business planning and decision making.
Select the best capital project, based on data analysis and evaluation, that will add the most value for the company.
Competency 5: Communicate financial information with multiple stakeholders.
Prepare an appropriate evaluation report for requestors, using sound research and data to defend the decision.

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Create a 6-8 page report that analyzes financial ratios for a selected company,

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Create a 6-8 page report that analyzes financial ratios for a selected company, uses the data to tell the financial story of that company, and concludes with a recommendation on whether the company would be a viable partner based on its financial condition.
Introduction
It is essential for financial advisors and upper management to know the financial condition of a company for a variety of reasons, including to improve its condition, to make decisions to increase shareholder value, and to know the true value of the entity. Such an analysis is important for any business, small, medium, or large.
This portfolio work project gives you a chance to apply the skills expected of an MBA graduate; from the financial management perspective, you should be able to:
Tell the financial story based on financial statements.
Conduct a financial analysis and identify focus areas for enhancing shareholder value.
Interpret ratio computations that are meaningful and inform business decisions and strategies.
Scenario
Maria Gomez is founder and president of PacificCoast Technology, a small technology company. She is considering being bought out by a larger publicly traded company so she can be rewarded financially for all of her entrepreneurial efforts. She calls you into her office and says:
Thank you for meeting with me today. I’d like to talk to you about the future of the PacificCoast Technology. I’ve been running this company for a long time now, and I think it’s time for me to consider the next five to ten years. I want to find a buyer for this company who can take it to its full potential but with me still leading it. I still want to be a part of the journey, to see this company’s growth, which means this potential buyer needs to be a high quality company with solid financial health. That’s the only way we’ll be sure there’s going to be necessary funds and stability for the firm to grow.
You are ready to take on this project to assist Maria with her vision to find a buyer to take the company into the next phase. At your desk, you review these additional meeting notes:
The acquiring company does not need to be in the same industry, as Maria values financial strength over any synergistic benefits.
Maria wants you to select a company and then examine its financial condition by analyzing its financial statements and using financial ratio analysis. She indicated that using both trend analysis—going back at least three years—and industry average analysis would be helpful information for her.
From this analysis, Maria wants you to tell the financial story of the potential buyer/company by listing its financial strengths and weaknesses.
She expects you to provide a list of actionable decisions so she can understand if the company would be a potentially viable corporate partner.
Your Role
You are one of Maria’s high-performing managers at PacificCoast Technology, and she trusts your work and leadership.
Requirements
After a few days of thinking about Maria’s project request, you call a meeting with her in which you lay out the requirements below. You tell her that by meeting these requirements, you believe she will have the information she needs. Maria approves your plan and asks that you get started right away.
Here is what your report should provide for Maria on the selected company:
Provide a brief background and summary of the potential corporate partner in terms of its history, product lines, and geographic reach. (Remember that Maria is looking for a partner that is a publicly traded firm.)
Analyze the financial statements of the firm, which can be typically be found in the annual report in the investors’ area of the corporate website, including the income statement, balance sheet, and statement of cash flows:
Do a comprehensive financial ratio analysis, including multiple financial ratios in each of the following categories—short-term solvency or liquidity, long-term solvency, asset management or turnover, profitability, and market value ratios.
Use the following tools to analyze these ratios: trend analysis (going back at least three years) and industry average ratio analysis. If industry average ratios are not available for the company, use an average of two of its nearest competitors.
Evaluate the financial statements and ratios of the firm to find its true condition and valuation.
From the ratio analysis, identify and strengths and weaknesses of the company.
Make conclusions on the current status of the firm based on its history and comparison to its competitors.
Make actionable items and conclusions, based on the data analysis, about the status of the company.
Based on the analysis of the firm, identify any general actions that need to be made to improve the financial condition, and indicate the ease or difficulty of the firm doing so.
Tell the current financial story of the firm and indicate the overall health of the firm as it relates to current valuation and the future prospects of the company.
Provide a clear picture of the financial condition and valuation of the company to shareholders, debtholders, customers, and employees.
Present information graphically and in narrative form, conveying a compelling snapshot of the company.
Recommend whether the company would be a good match to enter into a buyout tender offer/agreement.
Remember that it is not enough to just simply summarize numbers or data for your audience. Put yourself in their shoes and make the connections for them, tell them why it is important, and tap into their concerns and motivations.
While you are free to use your creativity in formatting your submission, keep in mind that this is a document that will be for the eyes of the owner of the firm, so make sure it can be easily and quickly examined by a busy upper-management professional, with clear writing and understandable graphics and charts.
Deliverable Format
Create a report that tells the financial condition of a company. Your report should provide information on the following:
Analysis of the financial statements.
Evaluation of the true condition and valuation of the company.
Recommendation of actionable items for the company based on the financial analysis.
Report requirements:
Ensure written communication is free of errors that detract from the overall message and quality.
Use at least three scholarly resources.
Your report should be between 6 and 8 pages.
Use 12 point, Times New Roman.
If you are experienced with preparing professional reports, you may use a format of your choice. However, if you are new to this type of writing and document style, you may wish to use these sections as a way to organize your report:
Title Page.
Executive Summary.
Company Background.
Financial Analysis.
Financial Ratio Analysis.
Trend Analysis.
Industry Average Analysis.
Conclusion.
Recommendations.
Appendix (if you have additional data, reports, charts, et cetera, to support your analysis).
Related company standards:
Remember that you are preparing a professional document meant for executive leadership with limited time. Your report should follow the corresponding MBA Academic and Professional Document Guidelines (available in the MBA Program Resources), including single-spaced paragraphs.
Use APA-formatted references.
Evaluation
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
Competency 1: Apply the theories, models, and practices of finance to the financial management of an organization.
Analyze financial ratio analysis, trend analysis, and industry average analysis.
Competency 3: Apply financial analyses to business planning and decision making.
Evaluate the financial statements of the firm to find its true condition and valuation.
Competency 4: Use data to support evidence-based financial decisions.
Develop actionable items and conclusions, based on the analysis, about the status of the company.
Competency 5: Communicate financial information with multiple stakeholders
Tell the current financial story as to the overall health of the firm as it relates to current valuation and the future prospects of the company.

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Please answer the following two discussion questions while citing from the sourc

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Please answer the following two discussion questions while citing from the sources provided for each discussion question. For Discussion 2 Question D – please make sure you read module 2 Case Scernio which is in the attachments below. PLEASE FOLLOW THESE DIRECTIONS HERE AND IN THE ATTACHMENTS!!!! Due tomorrow at 2pm EST.

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Option #2: Change at DuPont (Exercise 9.5) Read the “Change at DuPont” case stud

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Option #2: Change at DuPont (Exercise 9.5)
Read the “Change at DuPont” case study in the Managing Organizational Change textbook. Write an essay that thoroughly addresses the following:
Provide specific examples of how any or all of the following approaches are included in the DuPont story: OD, appreciative inquiry, and sense-making.
Discuss the compatibility of these three approaches and the extent to which a change manager could glean insights from each approach based on evidence from the DuPont story.
Describe the steps an organizational development practitioner could take to manage this change based upon action research.
Conclude your essay by summarizing: a) how your change steps may be received by DuPont staff affected by the change, and b) how you took potential resistance to change into consideration when outlining your steps to manage the change.
The length and formatting requirements are as follows:
Your paper must be 3 to 4 pages in length, excluding the cover and references pages.
Include a cover page, section headers, an introduction, a conclusion, and a references page. Use the APA Template Paper as a resource.
Format your paper according to the CSU-Global Guide to Writing and APA (Links to an external site.).
Include a minimum of three sources to support your positions, claims, and observations, two of which should be academic, peer-reviewed sources, in addition to the textbook. The CSU-Global library is a great place to find these resources.
Throughout this course, be sure to use the Business Management & Administration Research Guide (Links to an external site.) in the CSU-Global library. Here you can:
Locate a variety of sources dealing with ethics, Corporate Social Responsibility (CSR), and business management.
Gather information specific to different aspects of business ethics.
Access writing and citing help.
Review the Critical Thinking Assignment rubric in the Module 5 folder for details regarding grading standards.

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Read the “Change at DuPont” case stud appeared first on homework handlers.