Capital investments
Analyzing capital investments to compare portfolios viability, financial profitability, risks, and future successes is an important skill for multiple roles in a modern
corporate world.
Organizations are looking for research and analytical skills in aspiring practitioners of finance. As future decision makers, this project serves as a real–world example of capital investment strategy and decision–making. You will be able to immediately apply the practical skills gained in this final assessment in your workplace.
Assume the role of a research analyst presented with two different, competing capital investment options. Specifically, evaluate different capital budgeting methods and then apply those methods to analyze the two options.
Ultimately, you will recommend one of the two options and defend your proposal for the senior management of the company. The product of your inquiry will be a capital budgeting case report intended for your executive–level audience.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions.
In this assignment, you will demonstrate your mastery of the following course outcomes:
•Employ appropriate financial tools for accurately assessing the strategic value of various capital investments
•Apply the perspective of senior management for properly examining resource allocation within corporations
•Evaluate different capital budgeting methodologies for their potential to promote sound, data–driven decision making in different business contexts
•Apply risk management practices for making informed capital budgeting decisions through appropriate quantification, mitigation, and pricing of risk
•Develop coherent capital budgeting strategies reflecting the strengths and weaknesses of various capital budgeting opportunities
Prompt
Considering the strategic objectives of your organization, which of the two capital investment options do you think is best?