PPT Assignment
Prepare a 12 slides presentation in which you analyze financial information and risks associated with an investment to expand an organization and make a recommendation on whether or not to invest in expansion.
ZXY Company is a food product company. ZXY is considering expanding to two new products and a second production facility. The food products are staples with steady demands. The proposed expansion will require an investment of $7,000,000 for equipment with an assumed ten-year life, after which all equipment and other assets can be sold for an estimated $1,000,000. They will be renting the facility. ZXY requires a 12 percent return on investments. You have been asked to recommend whether or not to make the investment supporting your recommendation to either make the investment or not, include the following items as part of your analysis:
1. Analysis of financial information.
2. Identification of risks associated with the investment. Consider:
a. How risky the project appears.
b. How far off your estimates of revenues and expenses can be before your decision would change.
c. The difference if the company were to use a straight line versus a MACRS depreciation.
3. Recommendation for a course of action.
4. Explanation of criteria supporting your recommendation.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Company-Financial-Statements.rar