Company Expansion - International
Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The company is currently operating at capacity so additional equipment will be required to complete the expansion. Utilize discounted cash flow techniques in your capital budget proposal. Using the current company financial information as a base for your forecast, create a proposal for the firm to expand its operations. This proposal should incorporate a CVP analysis, balanced scorecard, complete budgeted financial statements (i.e., income statement, balance sheet, and statement of cash flows) with supporting schedules, as well as a discussion of constraint theory and its importance in this decision-making process.
The leading provider of renewable energy, Drax Group is currently meeting the 8% of UK electricity needs with its six power units, out of which has converted three units on biomass. The objective is to reduce carbon emission by reducing its dependency on fossil fuels and make use or organic matter such as wood it pellets to generate electricity.