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FIN 575 Week 3 Individual Assignment Project Proposal
$ 12.00

Write no more than a 450- to 1,350-word proposal which applies the methods for calculating a project’s viability.

Select one of the following organizations:

  • British Petroleum (BP)
  • Ford Motor Co.
  • Applied Materials

Review the organization’s annual report by researching your chosen organization.

Write a proposal advising the selected organization on obtaining funding and managing a project budget, to purchase equipment to increase worker safety. The initial investment is $25M and the yearly cash inflows are as follows:

  • Year 2 – $5M
  • Year 3 – $10M
  • Year 4 – $15M
  • Year 5 – $12M

Assume all cash flows are at the beginning of the period and a discount rate of 10%.

Include the following information in your project proposal:

  • Define business needs in an overivew of the project, including high-level deliverables to solve the problem.
  • Describe the net present value (NPV), internal rate of return (IRR), profitability index, and payback methodologies for calculating the projects viability. Examine the strengths and weakness of each methodology.
  • Calculate NPV, IRR, profitability index, and payback method. Explain the rationale for accepting or rejecting the project based on its financial viability.
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