Details: Project selection directly affects organizational success.
As BPP prepares to offer its new portfolio management services, it sees a need to address the project selection process. Provide a memorandum detailing the flow of information involved in a generic capital budgeting process. This will be used as a basis for developing a standard BPP approach.
The memorandum should discuss the organizational cost of capital, how to integrate new project investment with an existing investment portfolio, and how to account for organizational tolerance for risk. Show how balance sheets, income statements, and cash flow statements are used as inputs to diagnose organizational, project health, and shareholder value. Include generic approaches to evaluation, and briefly discuss specific approach options in the framework.