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:

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.

Your Role

You are one of Maria’s high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership. Senior leadership was impressed with your presentation in Assessment 1 and they are tasking you with the analysis of these three proposed capital projects based on forecasted cash flow. You have completed forecasting the projected cash flows of the projects as reflected in the attached spreadsheets, Projected Cash Flows [XLSX]. You now need to conduct your analysis recommending which will provide the most shareholder value to the organization.

Requirements

Project A: Major Equipment Purchase
Project B: Expansion Into Three Additional States
Project C: Marketing/Advertising Campaign

Deliverable Format

In this assessment, you will prepare an appropriate evaluation report to senior leadership using sound research and data to defend your decision.

Report requirements: