Question
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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