Capital Budgeting Project
- Evaluate the introduction of a product to Tesla, in this case Tesla Powerwall.
- Full free-cash flow forecast analysis. Justify each assumption made about the numbers. Carefully forecast cash in-flows and out-flows for the project.
- Use as the example of HomeNet provided in the PowerPoint as an example but not a template
- Include the Indirect effects (costs or benefits) on Incremental Earnings:
- cannibalization, opportunity cost and externalities
- "5 minutes' presentation - Should be able to convince the audience yours is the best way to go for struggling Tesla." : Include figures and graphs that can be used for the presentation.
Note from instructor:
One starting point would be to look at the latest financial statement of Tesla Inc. Check some ratios (for example. profit margin. operating costs over total costs, etc.) to have a sense as to how efficient the firm is. Then you may want to look at whatever is it the press has said regarding the product and make assumptions using that information. For example, for the Powerwall retail prices exist and maybe estimations of number of units sold can be found in the media. You can get further information reading the financial reports filed at the SEC or the one on Tesla's website.
The whole point of the exercise is that you carefully forecast cash in-flows and out-flows for the project and convince some of us whether it is worth pursuing (or not).
Attachment:- Example.rar