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Write no more than a 450- to 1,350-word proposal which applies the methods for calculating a project's viability.

Select one of the following organizations:
British Petroleum (BP)
Ford Motor Co.
Applied Materials

Review the organization's annual report by researching your chosen organization.

Write a proposal advising the selected organization on obtaining funding and managing a project budget, to purchase equipment to increase worker safety. The initial investment is $25M and the yearly cash inflows are as follows:
Year 2 - $5M
Year 3 - $10M
Year 4 - $15M
Year 5 - $12M

Assume all cash flows are at the beginning of the period and a discount rate of 10%.

Include the following information in your project proposal:

Define business needs in an overivew of the project, including high-level deliverables to solve the problem.

Describe the net present value (NPV), internal rate of return (IRR), profitability index, and payback methodologies for calculating the projects viability. Examine the strengths and weakness of each methodology.

Calculate NPV, IRR, profitability index, and payback method. Explain the rationale for accepting or rejecting the project based on its financial viability.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91702051
  • Price:- $30

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