Choose a public company. Assume you are the project manager of this company. This company is considering to invest in ONE project/business for a period of 5 years and move on to other projects afterwards.

Choose a public company. Assume you are the project manager of this company. This company is considering to invest in ONE project/business for a period of 5 years and move on to other projects afterwards. The investment can be of any type (purchase of equipment, vehicles, property, another business/store etc., new or old).You must make relevant selection/decisions from the available choices/options from the topics discussed during the lessons on various aspects related to your assignment.Answer the following:

1.Description of the investment and cash flow analysis:Describe the investment of your choice and present an annual incremental (for this project only) cash flow statement with all the estimated cash flows (initial cost of investment and annual cash flows) for the next 5 years.Present your calculations and discuss the findings. (25 points)

2.WACC analysis: Calculate the weighted average cost of capital (WACC) of the company of your choice. Present your calculations and discuss the findings. (20points)

3.Capital budgeting analysis: Use at least 2 investment appraisals methods to evaluate your project. Use theWACC as discount rate. Present your calculations and discuss the findings. (20 points)

4.Shareholder value analysis: Perform a valuation analysis for the business of your choice using 1 method to measure the company’s commitment to value. Assume the project you have chosen is the only investment for the next 5 years. What would be the minimum price of the business? Present your calculations and discuss the findings. (25 points)

Note:

a.In case your initial investment was a new store/business/property, then use the same forecasted statements you used above (1–3)

b.In all other cases, use the financial statements of the company of your choice of the last 5 years as forecasted years

5.Risk analysis: Name and discuss at least 2 risks associated with this specific investment and your strategy towards these risks.(10points)