Question
Use the analysis for the publicly traded company that you selected in the midpoint group assessment to determine the financial feasibility of a hypothetical capital
Use the analysis for the publicly traded company that you selected in the midpoint group assessment to determine the financial feasibility of a hypothetical capital investment. You should incorporate any comments you received from your previous group analyses to conduct this capital budgeting analysis. Your analysis should have a maximum length of three pages (please include all calculations in a separate excel file) and meet the following seven requirements: The company that I have chosen is BOEING...
1. Assume an initial investment amount. Make sure you adequately explain the selected scale of the investment. For example, why is it 1 million instead of 100 million?
2. Explain any potential changes to your forecasted financial statements caused by the investment.
3. Calculate the change in Free Cash Flows expected from this investment for the next five years. You may assume stability conditions after that.
4. Apply at least two capital budgeting criteria for your analysis
5. For your discount rate, please use three different values. The rates should be reasonable and well-supported, but no calculations are required (though you are always welcome to try). Again, there are no "correct" values, but they must be reasonable, given our class discussions.
6. Include a Risk Assessment of your planned investment outcome.
7. provide an overall conclusion regarding the feasibility of this investment. Your recommendation should not be ambiguous and open to interpretation.
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