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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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(WORD+EXCEL+PPT ATTACHED))Unit 5: Module 5 - M5 Assignment 2 Assignment 2: Required Assignment 2—Genesis Energy Capital Plan Report (NEW COURSE)A++++Tutorial Use as Guide
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file1.pptx preview (490 words)
Executive summary on Analysis xx xxxxxxxx xx operating xxxxxxxxx
Projects xxx Metrics xx Analyze.
xxxxxxxxx xxx Genesis xxxxxx xx xxxxx xx make a contract xxxx Sensible Energy to xxxxxxxxx xxx project of xxxxxxxxx expansion. xxxxxxxxxx xxx been made xxxxxxxxx the xxxxxx xxx expenditure of xxxxxxx for next 10 years xx xxx xxxxxxxxx xxxxxxxxxxx xxx be xxxxxxxxx xxxx different xxxxxxx xxx xxxx to evaluate xxx xxxxxxxxxxx xx project xx with better outlook xxxx xxxxxxxx decision can xx xxxxxxxxxxxxx are xxxx xxxxx Payback Period, xxxxxxxxxxxxx Index and xxxx xxxx xxxx xxxxx
xxxxxxx xxxxxxxxx xxx xxxx
xxx WACC is xxxxxxxxxx to 3.55%
The expected xxxx of xxx project xx xxxxx xx 10 or x xxxxx xxxxxxxxx xx xxx xxxxxxx xxxxxxx xx further divided into sub part or options xxx analyzed xx xxx xxxxxxx picture. So, xxxx five different xxxxxxxx xxxxxxxxxx xxxxxxxxx pieces 1, 2, xxx xx and xxxxxxxx inspection) xxx undertaken, xxx multiple-configuration xxxxxxx (facility
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file2.docx preview (1114 words)
Genesis xxxxxxx xxxx xxxxxx
Recently, xxx Genesis xxxxxx is xxxxx xx make a xxxxxxxx with xxxxxxxx Energy xx xxxxxxxxx the project of operating xxxxxxxxxx xxx before going xxxxx xxxx this project, study of xxxxxxx’x xxxxxxxxxxx xx xxxxxx and xxxxxxxxx estimation xxx xxxx made xxxxxxxxx the income xxx xxxxxxxxxxx of xxxxxxx for next 10 years so its xxxxxxxxx xxxxxxxxxxx xxx xx assessed. Five xxxxxxxxx xxxxxxx xxx xxxx xx evaluate the xxxxxxxxxxx xx project so with xxxxxx xxxxxxx xxxx concrete decision xxx be made.
xxxxxxx Energy xxx debt xxx Equity xx its xxxxxxxx There xx xx xxxxxxxxxx share. The xxxxxxxx xxxxxxx xxxx of capital xxxxxx xxxxx xx 3.55%. The expected xxxx of xxx project xx xxxxx as xx xx x xxxxx xxxxxxxxx to its xxxxxxx xxxxxxx xx xxxxxxx divided into sub xxxx xx xxxxxxx and xxxxxxxx to get broader picture. So, xxxx xxxx different projects xxxxxxxxxx equipment
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file3.xlsx preview (397 words)
|Genesis Energy xxxx|
|xxxxxxxx Payablex||* xxxxxxxx||7.50%||xx||0%|
|Short-term xxxx Payablex||x xxxxxxx||2.50%||xx||$8,000.00|
|Total xxxxxxx xxxxxxxxxxxx||x 400,000x||10.00%|
|xxxxxxxxx Note xxxxxxx||x xxxxxxxx||xxxxxxx||xxx||xxxxxxxxxx|
|Mortgage xxxxxxxx||* xxxxxxxxxx||xxxxxxx||6%||xxxxxxxxxx|
|Total xxxxxxxxxx||x xxxxxxxxx|
|xxxxxx Stock Equity||x xxxxxxxxxx||xxxxxx||2%||$30,000.00|
|Operating xxxxxx||x xxxxxxx||12.50%||0.0%|
|xxxxx Liabilities xxx Equityx||x 4,000,000x||100.00%x||xxxxxxxxxxxx||xxxxx|
|Genesis Energy xxxxxxx xxxxxxxxx|
|Initial Investment||xxxx xxxxx||Cash Flow||Cash xxxx||xxxx xxxxx||Cash Flow||Cashflowx||xxxxxxxxx||Cashflowx||Cashflow||Cashflow|
|Y1x||Y2||Y3x||Y4x||Y5||Y6x||xx||Y8x||Y9x||xxx||xxx||xxxx||xxxxxxx PERIOD||MIRRx||PI||xxxxxxxxxx PAYBACKx||Capital Projectx||PV'S||Average xxxxxxxxxxxx|
|xxxxxxx A: xxxxxx xxxxxxxxx||xxxxxx||xxxx||xxxxx||-400||xxx||xxxx||xxxx||1000x||1000||xxxxx||1000x||xxxxxxxxx||10%||xxxxx||7.95%x||1.73||Project Ax||xxxxxxxxx|
|xxxxxxx xx xxxxxx facility||-2500x||xxxxx||-200x||xxx||400x||400||xxxxx||xxxxx||xxxx||1500x||1500x||xxxxxxxxxx||xxxx||5.67x||xxxxxx||xxxx||xxxxxxx B||$6,074.81|
|xxxxxxx xx 75-emp xxxxxxxxx||-3000x||-300||-400x||xxxxx||xxxx||xxxx||2000||2000x||2000x||2000||2000||$4,931.03x||xxxx||xxxx||12.61%||xxxx||Project Cx||$7,931.03|
|Project A, B xxx xx||xxxxxx||xxxx||xxxx||xxxxx||xxxxx||xxxx||xxxxx||4500||4500x||xxxx||xxxx||$2,899.41||15%x||xxxxx||11.33%||xxxxx||xxxxxxx xxx xxx xx||xxxxxxxxxx|
|Equipment 1 - xxxxx|
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