Senior leadership has now called upon you to analyze three capital project requests based on forecasted cash flow as they relate to maximizing shareholder value.
You are one of Maria’s high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership. Senior leadership was impressed with your presentation in Assessment 1 and they are tasking you with the analysis of these three proposed capital projects based on forecasted cash flow. You have completed forecasting the projected cash flows of the projects as reflected in the attached spreadsheets, Projected Cash Flows [XLSX]. You now need to conduct your analysis recommending which will provide the most shareholder value to the organization.
• Use capital budgeting tools to compute future project cash flows and compare them to upfront costs. Remember to only evaluate the incremental changes to cash flows.
• Employing capital budgeting metrics, determine which project, given the forecast cash flows, gives the organization the best chance to maximize shareholder value.
• Demonstrate knowledge of a variety of capital budgeting tools including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). The analysis of the capital projects will need to be correctly computed and the resulting decisions rational.
• Evaluate capital projects and make appropriate decision recommendations. Accurately compare the indicated projects with correct computations of capital budgeting tools and then make rational decisions based on the findings.
• Select the best capital project, based on data analysis and evaluation, that will add the most value for the company. Provide a rationale for your recommendations based on your financial analysis.
• Prepare reports and present the evaluation in a way that finance and non-finance stakeholders can understand.
Germans and Italians, were sympathetic to the Central Powers at the beginning of the war. Many had also joined domestic socialist organizations like the Industrial Workers of the World (IWW) and participated in strikes. The presence of so many aliens in the United States caused a surge of xenophobia that rose to the top of the U.S. government. President Woodrow Wilson in his State of the Union address on December 7, 1915 claimed that the “citizens of the United States…born under other flags… poured the poison of disloyalty into the very arteries of our national life.” He warned that these immigrants “debase our politics to the uses of foreign intrigue.” The accusations were exaggerated but he urged the Congress to enact laws to crush the “disloyal,” “anarchic,” and “infinitely malignant” “creatures of passion.” America’s entry into World War I provided the urgency that was needed to move forward with the legislation. Following the lead of Woodrow Wilson, the Espionage Act of June 1917, issued to prevent disloyalty in time of war, disproportionately targeted foreigners, socialists and labor unions. To Wilson and many Americans, there was a very thin line between enemy alien agents and radical labor organizations. The most dangerous group, they believed, was the Industrial Workers of the World (IWW), an inclusive labor union formed in 1905 that attracted low wage immigrant workers and supported socialism. In 1916, the leaders of the IWW, like much of the country, condemned war. They further called for “class solidarity among the workers of the entire world” and promoted a general strike in all industries to prevent capitalists from battling each other. A year later, the union became the first victim of what Attorney General Thomas Gregory called the “hysteria” that developed around the Espionage Act. In July, 1917, a month after the Act was passed, the IWW sponsored a labor strike in Bisbee, Arizona. Soon after the strike was called, rumors circulated that it had been infiltrated by pro-Germans prompting the Los Angeles Times to warn that “on our soil is an enemy…preaching revolution and invoking a>GET ANSWER