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B0622 Homework M5_A2 Assignment 2?Genesis Energy Capital Plan Report




Question;Assignment 2: Required Assignment 2?Genesis Energy Capital Plan;Report;The;Genesis Energy operations management team, nearing completion of its agreement;with Sensible Essentials, was asked by senior management to present a capital;plan for the operating expansion. The capital plan was not to be a wish list;but an analysis of the necessary expenditures to successfully establish a fully;equipped operating facility overseas.;In;addition, senior management requested meaningful financial and operating;metrics to ensure that the performance objectives for the facility were being;met. The operations management team was given five days to accomplish the;following;Calculate the firm?s WACC.;Prepare and analyze each;planned capital expenditure.;Evaluate, rank, and recommend;the capital expenditures according to beneficial value to the;organization, using the evaluation tools NPV, payback, and IRR.;Evaluation, ranking, and recommendations should be by category of;expenditures. For example, facility, equipment 1, 2, and 3, and;inspection.;Using the selected choices in;part three, calculate the full cost of establishing a fully equipped;facility. This would include the facility, equipment 1, 2, and 3, and;inspection. In addition, calculate the payback, NPV, and IRR for the;completed facility.;Construct and recommend between;three and five metrics to measure the performance of the organization. At;least one metric should be dividend decision-making driven.;Prepare an executive summary;along with a separate document showing the calculations.;Part I;Following;the example of the operations management team, do the following;Download the Capital Budgeting spreadsheet, and;compute the WACC for Genesis Energy.;Using the information provided;in the spreadsheet, analyze Genesis Energy?s 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.;Construct and recommend between;three and five metrics to measure the performance of the new operating;strategy. At least one metric should reflect dividend policy as it relates;to rewarding shareholders.;Prepare an executive summary;describing your recommendations for each project and the overall cost, net;cash flows, and expected returns of the operating configuration that you;recommend. Be sure to justify your recommendations in terms of the;investment criteria applied in Step 3 above. Be sure to report the full;cost of the facility as it is configured per your recommendations. Present;and justify your operating strategy performance metrics.;Your;complete report should include all of your calculations as appendices (5 pages;or 1 page for each project).;Part II?Executive Summary Presentation;Because;of limited resources in an era of plentiful opportunities, companies must;carefully select investments. You analyzed Genesis Energy?s expansion plans and;explained your findings in M5: Assignment 1.;This;assignment is based on those findings. In this assignment, you will create a;PowerPoint presentation that will include the following information;An executive summary of your;findings from M5: Assignment 1. Be sure to adhere to the;following;The presentation should be;approximately 6?8 minutes (or 10?12 slides).;A statement of the problem or;topic is included.;A concise analysis of the;findings is included.;Specific details from M5;Assignment 1 to highlight or support the summary are;incorporated.;Develop;a 10?12-slide presentation in PowerPoint format. Apply APA standards to;citation of sources. Use the following file naming convention;LastnameFirstInitial_M5_A2.ppt.


Paper#49412 | Written in 18-Jul-2015

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