Likely to contribute to capital project analysis failure

Assignment Help Financial Management

Reference no: EM131915213

As capital budgeting essentially re-invents the company through major long-term expenditures it is arguably one of the most critical functions that financial management performs. However, based on my personal experiences, extensive empirical data, and antidotal data - many firms routinely experience significant failures in their selection of capital projects.

1) For your first topic in this conference I would like for you to briefly review either your personal experiences and/or the financial literature to identify and present a description of one actual capital project/product failure and the reasons attributed to the failure. For those of you who do not have personal experiences the following are some illustrated examples of failed projects/products over the last 50 years you may want to look up and consider: -New Coke,- The Iridium Satellite Communication,- the Edsel automobile, Beta (vs. VHS), the Concord SST, and various Dot Coms. Feel free to research others. In your response please provide financial information regarding the project (what is available): initial outlay, projected cash flows, final dollar losses. This is one to two paragraph exercise - - . I am interested only in your short, concise description and the major reasons you believe it failed.

2) Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis failure.

Reference no: EM131915213

Questions Cloud

Perform cost-benefit analysis : Perform a cost-benefit analysis. Many people who perform a cost-benefit ana- lysis on a regular basis tend to call it “shopping around.

What are the hallmarks of a good business code of conduct : What are the hallmarks of a good business code of conduct? Are conflicts of interest the same as self-dealing

What is the relationship between risk and return : First, what is "risk" in business? How can we measure risk? Next, what is the relationship between risk and return?

How much is the carrying amount of the land : Moon also owns some land, which was purchased at a cost of $5,000,000 on 30 June 2012. How much is the carrying amount of the land

Likely to contribute to capital project analysis failure : Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis failure.

How would the purchasing power of your savings have changed : Real rate of interest in 1975 was %. How would the purchasing power of your savings have changed over the year?

What is post merger value of operations : What is the post merger value of operations?

Why do you think heat is frequently used when styling hair : Human hair is composed of a protein, keratin. Considering protein structures, why do you think heat is frequently used when styling hair?

How much will this trust be worth in the year 2020 : In 1960, your grandmother put $1000 into a special trust to be paid to a future grandchild (you) 60 years later, in the year 2020.

User Account

All Pages