Investment analyst in a publicly

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After graduating from JCU, you work as an investment analyst in a publicly listed social media company in Singapore. The company is seeking for growth opportunities and you are tasked to evaluate a potential investment project which will increase the cash flows for the company in the subsequent years.

(a) You believe that net present value (NPV) is the best capital budgeting tool to evaluate the targeted project. Write down the NPV equation and the necessary steps you carry out the NPV analysis in practice (no calculation). State your assumptions when necessary.

(b) What factors are important and needed in estimating NPV in (a) successfully?

(c) If you identify the targeted project for the company is in the cyble security, what are the possible growth drivers or factors you would use and estimate the cash flows generated by the cyble security project?

(d) List 2 alternative capital budgeting techniques and discuss its advantages.

Reference no: EM133122939

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