Develop theory and application of capital budget analysis

Assignment Help Financial Management

Reference no: EM131836446

During week 6 we develop the theory and application of capital budget analysis. The theory was robust, the calculations mathematically and logically defined, and many of the real-world problems, likely to be encountered, were addressed. As capital budgeting essentially re-invents the company through major long-term expenditures it is arguably one of the most critical functions that financial management performs. However, based on my personal experiences, extensive empirical data, and antidotal data - many firms routinely experience significant failures in their selection of capital projects.

The assignment for this topic consists if two parts:

1) For your first topic in this conference I would like for you to briefly review either your personal experiences and/or the financial literature to identify and present a description of one actual capital project/product failure and the reasons attributed to the failure. For those of you who do not have personal experiences the following are some illustrated examples of failed projects/products over the last 50 years you may want to look up and consider: -New Coke,- The Iridium Satellite Communication,- the Edsel automobile, Beta (vs. VHS), the Concord SST, and various Dot Coms. Feel free to research others. In your response please provide financial information regarding the project (what is available): initial outlay, projected cash flows, final dollar losses.

Remember this is a one to two paragraph exercise - do not go overboard - a few hours research and summation is all that’s required. I am interested only in your short, concise description of the project and the major reasons you believe it failed.

2) Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis failure.

Reference no: EM131836446

Questions Cloud

Design a communication plan for the project : You have recently been appointed head of human resources and are now in charge of managing a small team. Your next project is to revamp the compensation.

Deposit each year into your retirement account : How much must you deposit each year into your retirement account starting now and continuing through year 9 if you want to be able to withdraw $100,000 per year

Proposal on bullwhip effect on scm and its mitigation : You need to make a research proposal on Bullwhip effect on SCM and its mitigation - Describe the methods you intend to use to deliver your aim and objectives

Why is experimentation an important part of the scientific : Why is experimentation an important part of the scientific method? Classify each of the following as an observation (O), a hypothesis (H), or an experiment (E)

Develop theory and application of capital budget analysis : During week 6 we develop the theory and application of capital budget analysis. The theory was robust, the calculations mathematically and logically defined,

Create nnotated high-level design enterprise network diagram : Reding Health Group Enterprise Network Project Overview. Create an annotated high-level design enterprise network diagram for Reding Health Group.

What is the solubility of neon : What is the solubility of neon (in units of grams per liter) in water at 25 °C, when the Ne gas over the solution has a partial pressure of 0.209 atm?

What are the obstacles to implementing given approaches : Type a two- to three-paragraph essay discussing the similarities and differences between person and behavior based approaches.

What is the percent yield : You recovered 59.5 g of solid AlCl3 when 50 g of gaseous Cl2 is reacted with excess solid Al. What is the percent yield?

User Account

All Pages