Traditional methods for evaluating the capital investments

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Reference no: EM13764617

Visit the Website of Johnson Controls Inc., and review its 2012 financial forecasts. According to the forecasts, Johnson Controls will increase capital investments to approximately $1.7 billion. More than 70% of the company's capital expenditures in 2012 are associated with growth and margin expansion opportunities.

Write a five to six (5-6) page paper in which you:

  1. Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls in the emerging markets to reduce risk providing a rationale of how risk will be reduced.
  2. Assess the potential impact of inflation on planned capital investments in China and examine approaches for an accurate evaluation of the investments. Suggest how this knowledge may impact management's decisions.
  3. Contrast the modifications you would make in evaluating the projects to increase internal capacity in North America to evaluating expansion projects in the global market and how this information will impact the decisions made related to expansion.
  4. Examine the benefits of using sensitivity analysis in evaluating the projects for Johnson Controls and how this approach can provide a competitive advantage for the company.
  5. Use at least three (3) quality academic resources in this assignment. 

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format.
  • Include a cover page containing the title of the assignment. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Plan and evaluate capital investments.
  • Use technology and information resources to research issues in managerial accounting.
  • Write clearly and concisely about managerial accounting using proper writing mechanics.

Reference no: EM13764617

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