Policy statement for company significant capital projects

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Reference no: EM131554794

Financial management of the firm is establishing a policy statement for the company's significant capital projects. Which of the following steps would you recommend be included in the policy?

A. All projects proposed must be supported by written proposal with financial and operational management input, including market and competitive assessments.

B. Operating and finance departments develop forecasts (estimates) of cash flows for the project (base, upside and downside cases).

C. Include NPV, Modified IRR and Discounted Payback assessments of the project's forecasted cash flows.

D. Break even analysis - evaluate if realistic operating and financial break even volumes and sales levels possible from the project.

E. Determine AFN, and check assumptions regarding incremental cost of capital.

F. All of the above.

Reference no: EM131554794

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