Assignment 2: Required Assignment 2—Genesis Capital Plan ReportThe Genesis operations management team nearing completion of its agreement with Sensible Essentials was asked by senior management to present a capital plan for the operating expansion. The capital plan was not to be a wish list but an analysis of the necessary expenditures to successfully establish a fully equipped operating facility overseas.In addition senior management requested meaningful financial and operating metrics to ensure that the performance objectives for the facility were being met. The operations management team was given five days to accomplish the following:Calculate the firm’s WACC.Prepare and analyze each planned capital expenditure.Evaluate rank and recommend the capital expenditures according to beneficial value to the organization using the evaluation tools NPV payback and IRR. Evaluation ranking and recommendations should be by category of expenditures. For example facility equipment 1 2 and 3 and inspection.Using the selected choices in part three calculate the full cost of establishing a fully equipped facility. This would include the facility equipment 1 2 and 3 and inspection. In addition calculate the payback NPV and IRR for the completed facility.Construct and recommend between three and five metrics to measure the performance of the organization. At least one metric should be dividend decision-making driven.Prepare an executive summary along with a separate document showing the calculations.Part IFollowing the example of the operations management team do the following:Downloadthe Capital Budgeting spreadsheet and compute the WACC for Genesis.Using the information provided in the spreadsheet analyze Genesis’s project options. Then calculate the periodic and cumulative net cash flows for each potential project and its associated options. Please note that there are five projects (facility equipment pieces 1 2 and 3 and internal inspection) and that each project offers multiple-configuration options (facility size equipment type etc.).Evaluate rank and recommend a specific option for each capital project according to beneficial value to the organization using the evaluation tools NPV payback and IRR.Construct and recommend between three and five metrics to measure the performance of the new operating strategy. At least one metric should reflect dividend policy as it relates to rewarding shareholders.Prepare an executive summary describing your recommendations for each project and the overall cost net cash flows and expected returns of the operating configuration that you recommend. Be sure to justify your recommendations in terms of the investment criteria applied in Step 3 above. Be sure to report the full cost of the facility as it is configured per your recommendations. Present and justify your operating strategy performance metrics.Your complete report should include all of your calculations as appendices (5 pages or 1 page for each project).Part II—Executive Summary PresentationBecause of limited resources in an era of plentiful opportunities companies must carefully select investments. You analyzed Genesis’ expansion plans and explained your findings inM5: Assignment 1.This assignment is based on those findings. In this assignment you will create a PowerPoint presentation that will include the following information:An executive summary of your findings fromM5: Assignment 1. Be sure to adhere to the following:The presentation should be approximately 6–8 minutes (or 10–12 slides).A statement of the problem or topic is included.A concise analysis of the findings is included.Specific details fromM5: Assignment 1to highlight or support the summary are incorporated.Develop a 10–12-slide presentation in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2.ppt.ByWednesday October 2 2013 deliver your assignment to theM5: Assignment 2 Dropbox.Assignment 2 Grading CriteriaMaximum PointsComputed the WACC for Genesis.32Calculated the periodic and cumulative net cash flows for each of the five potential projects and their associated options.32Evaluated ranked and recommended a specific option for each capital project according to beneficial value to the organization using evaluation tools NPV payback and IRR.72Constructed and recommended 3–5 metrics to measure the performance of the organization (At least one metric should be dividend decision-making driven.).60Prepared an executive summary describing your project recommendations and the full cost of the new facility.76Wrote in a clear concise and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling grammar and punctuation.28Total:
