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Genesis Energy Captial Projects Initial Investment Cash Flow Cash Flow Cash Flow Cash flow Cash Flow Cashflow Y1 Y2 Y3 Y4 Y5 Y6-10 Project A:

Genesis Energy Captial Projects
Initial Investment Cash Flow Cash Flow Cash Flow Cash flow Cash Flow Cashflow
Y1 Y2 Y3 Y4 Y5 Y6-10
Project A: 25-emp facility 2000 -200 -300 -400 200 400 1000
Project B: 40-emp facility 2500 -200 -200 100 400 400 1500
Project C: 75-emp facility 3000 -300 -400 -100 600 700 2000
Equipment 1 - fully automatic 1500 -100 100 200 400 200 800
Equipment 1 - semi-automatic 1000 -50 -100 200 200 300 600
Equipment 1 - manual 750 150 150 150 150 150 750
Equipment 2 - Standard 800 -175 200 250 250 300 700
Equipment 2 - top of line 1500 -100 275 325 325 325 1500
Equipment 3 - 3-man machine 700 -200 -150 250 300 350
Equipment 3 - 2-man machine 600 -175 -100 175 175 175
Equipment 3 - 5-man machine 750 -300 -200 300 400 400
In-house inspection 1800 100 500 500 300 300 800
Contract inspection 200 200 200 100 100

Using the information provided in the spreadsheet, analyze Genesis Energys project options. Then, calculate the periodic and cumulative net cash flows for each potential project and its associated options. Please note that there are five projects (facility, equipment pieces 1, 2, and 3, and internal inspection), and that each project offers multiple-configuration options (facility size, equipment type, etc.).

Evaluate, rank, and recommend a specific option for each capital project according to beneficial value to the organization, using the evaluation tools NPV, payback, and IRR.

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