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S/F/282. Capital Budgeting & Investment Appraisal for Alpha Plc

WORDS:
1900
DATE:
2011
PRICE:
19.99 GBP

This paper advises Alpha Plc whether or not they should purchase South Wales opencast coalmine, and aims to assess whether it is a profitable venture. The paper uses a discounted cash flow method to analyze the project, and chooses the Net Present Value (NPV) method. The results from the analysis are examined, and the paper provides reasons why the venture is unprofitable. The paper then discusses investment appraisals, focusing on topics like cash flows, interest payments, working capital, and relevant costs. The cost of capital and risk is then discussed in detail and the paper concludes by suggesting recommendations for the company.

 

KEYWORDS: Capital Budgeting, Investment Appraisal, Alpha Plc, discounted cash flow, Net Present Value, NPV, cash flows, interest payments, working capital, cost of capital, risk,