Capital budgeting tools

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.
Requirements
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 nonfinance stakeholders can understand.