[SOLVED] Capital Budgeting Essay

I don’t know how to handle this Business question and need guidance.

I. Executive Summary – a one page Executive Summary should be the first page of your report.It should summarize your findings, and should not exceed one page (12 pt, double spaced).If I only read this summary, I should be aware of what your recommendation is, and how and why it was determined.

II.Analysis Section – the next section of your report should consist of a narrative containing an in-depth analysis of the fact situation.In this section, you should explain how/why you treated certain issues that arise in this case, as well as your overall conclusions.In addition, you should cite specifically the quantitative analysis exhibits (if any) contained in your Supporting Materials Section.Maximum length = 6 pages (double spaced)

Questions you may wish to consider when doing your analysis:

1.How does Victoria Chemicals evaluate its capital-expenditure proposals? Why is it such a complicated scheme?Do you agree with their current approach?

2.What is the Transport Division’s suggestion? Does it have any merit?

3.What is the director of sales’ suggestion? Does it have any merit?

4. Why did the assistant plant manager offer his suggested change? Does it have any merit?

5.What did the analyst from the Treasury Staff mean by his comment about inflation? Do you agree with it?

6.How should Greystock modify his DCF analysis?

7.What is the Merseyside project worth to Victoria Chemicals?

III. Supporting Materials Section – this final section should contain tables, etc. that present your quantitative assessment.These supporting materials should specifically be mentioned somewhere in your Analysis Section.