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Assume you were hired at a rapidly growing company, InGen. The company has just received a large cash inflow from the sale of a building
Assume you were hired at a rapidly growing company, InGen. The company has just received a large cash inflow from the sale of a building it no longer utilized. The owners want redeploy capital to the best investment opportunities that can create value. The organization doesnt know how much money it needs to invest today to meet its projected financing needs of $ million in two years.
How much money does the company need to invest today to have $ million dollars in two years? Knowing the expected return is a forecast and can vary, include a best, and worst case estimate in addition to your original estimate.
a Assume an expected rate of return of
b Assume the expected return will vary up in the best of circumstances and in the worst of circumstances.
Calculate the NPV and IRR for the following projects.
Calculate how much must revenue be to avoid loses for each project? Breakeven Point
Calculate the impact a increase and decline in revenue would have on the projects estimated NPV
Recommend which projects the company should select to create the most value for the least risk possible. Support your recommendation with analysis. Include specific numbers.
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