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Genesis Capital plan report
The Genesis operations management team, nearing completion of its agreement with Sensible Essentials, was asked by senior management to present a capital plan for the operating expansion. The capital plan was not to be a wish list but an analysis of the necessary expenditures to successfully establish a fully equipped operating facility overseas.
In addition, senior management requested meaningful financial and operating metrics to ensure that the performance objectives for the facility were being met. The operations management team was given five days to accomplish the following:
Calculate the firm’s WACC.
Prepare and analyze each planned capital expenditure.
Evaluate, rank, and recommend the capital expenditures according to beneficial value to the organization, using evaluation tools NPV, payback, and IRR. Evaluation, ranking, and recommendations should be by category of expenditures. For example, facility, equipment 1, 2, and 3, and inspection.
Using the selected choices in part three, calculate the full cost of establishing a fully equipped facility. This would include the facility, equipment 1, 2, and 3, and inspection. In addition, calculate the payback, NPV, and IRR for the completed facility.
Construct and recommend between three and five metrics to measure the performance of the organization. At least one metric should be dividend decision-making driven.
Prepare an executive summary along with a separate document showing the calculations.
Following the example of the operations management team, do the following:
Download the Capital Budgeting spreadsheet, and compute the WACC for Genesis.
Using the information provided in the spreadsheet, analyze Genesis’s project options.
Using the information provided, calculate the periodic and cumulative net cash flows for each potential project and its associated options. Please note that there are 5 projects (facility, equipment pieces 1, 2, and 3, and internal inspection) and that each project offers multiple configuration options (facility size, equipment type, etc.).
Evaluate, rank, and recommend a specific option for each capital project according to beneficial value to the organization, using evaluation tools NPV, payback, and IRR.
Construct and recommend between three and five metrics to measure the performance of the new operating strategy. At least one metric should reflect dividend policy as it relates to rewarding shareholders.
Prepare an executive summary describing your recommendations for each project and the overall cost, net cash flows, and expected returns of the operating configuration that you recommend. Be sure to justify your recommendations in terms of the investment criteria applied in Step 3 above. Be sure to report the full cost of the facility as it is configured per your recommendations. Present and justify your operating strategy performance metrics.
Your complete report should include all of your calculations as appendices (5 pages, or 1 page for each project).
Write a 5–6-page report in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstinitial_M6_A2.doc.
March 17, 2012, deliver your assignment to the M6: Assignment 2 Dropbox.
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Genesis Capital xxxxxx
The xxxxxxxx on xxxxxxx xxxxxxx is among the most xxxxxxxxxxx x firm has to xxxxx x decision xx xxxxx x xxx plant xx xxxxxx into x xxxxxxx xxxxxx xxx xxxxxxxxx the performance of the xxxx xxxx xxx xxxx decade. The capital xxxxxxxxx xxxxxxxx involves xxx xxxxxxxx of xxxxxxxxxxxx for x project with a xxxx xx at xxxxx xxx year xxx usually xxxxxxxxxxxx xxxxxxx xxxxxxx budgeting helps in xxxxxxxxxxx that how should a firm xxxxxx xxx capital.
xxxxxxxxxx xx xxx xxxxxxx
xxxxxxxxx Capital budgeting options xxxx are: Payback period (which xxxxxxxx the xxxx or number xx xxxxx which is required to cover xxx initial xxxxxx xx investment in the xxxxxxxxx xxxxxxxxxx xxxx xx xxxxxx (this xx xxxx known xx xxxxxx xx xxxxxxxxxxx which xxxxxxxx xxx xxxxxxxxxxxxx xx xx xxxxxxxxxx xxxxxxxxxxx xxx financial statements), xxxxxxxxxx Payback xxxxxx (which analysis xxx xxxx or xxxxxx xx xxxxx which xx required to cover the initial xxxxxx
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xxxxxxx Operations xxxxxxxxxxxxxxxxx
xxxxxxx Operations Management
xxxxxxx has xxxxxxxxxx xx xxxxxxxxxxx Manufactures high xxx xxxxxxxxx software xxxxx xxxxxxxxxxxxxxxxx has one xxxxxxxx xxxxxxxxx xxxxxx xx xxxxxx only. Genesis xxxxxx xxxxxx xxx xxxxxxxx to xxxxxxx xx
xxx xxxxxxx xxxxxxxxxxx develops xxxxxx xxxxxxxxx software and hardware xxxxxxxxxxxx for xxxxxxxx xxxxxxxxxx xxx xxxxxxxx use. xxxxxxx is xxxxxxxxxxx xxxxxxxxx its production xxxxxxxxxx xx xxxxx xxxx xxxxxxxxx xxxxxxx the United xxxxxxx xxx xxxxxxx xxxxxxxxx has xxxxxxxxxx in Canada xxx xxxxxxxx xxx need xxx xxxxxxx expansion in xxxxx xx xxxxxxx timely xx global customers.
xxxxxxx has xxx xxxxxxxxx Sources The xxxxx xxx is its xxxxxx xxxxxxx xxxxxx one xx Equity xxxxxxxxxxxxxx xxxxxxxxx xxxxxxxxx options xxx not fulfill xxx expansion dreams xx the xxxxxxx in any xxxx
xx xxxxxxx xxxxxxx xxx xxxx two xxxxxxxxx options available xxxxx xxx xxx xxxx xxxxxxxxx in its xxxxxxxxxx
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