FIN 575 Week 3 Individual Assignment Project Proposal

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 %u2013 $5M
• Year 3 %u2013 $10M
• Year 4 %u2013 $15M
• Year 5 %u2013 $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 overview 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.

Format your proposal consistent with APA guidelines.

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