Project 5: Cost of Capital, Risk/Return, and Capital Budgeting

Scenario

Your team's work with Largo Global Inc. (LGI) is nearly complete. In your consulting role, you have recommended steps for improving the company's financial health. You have offered advice on a revenue target, recommended steps for optimizing operations, and suggested investments that will improve LGI's competitive position. In your final project, you will continue working on capital budgeting with a focus on the best way for LGI to finance the investments you recommend.

Your Project 5 business report will focus on ensuring LGI's capital structure is sound and that the company is on a financially sustainable path. You will recommend a plan for financing investments that does not expose LGI to unnecessary risk. By the end of this project, the company's financial statements should demonstrate that it has returned to a competitive position.