Analysis of a Project for Dell Inc: Managerial Finance

Running head: MANAGERIAL FINANCE
Managerial Finance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1MANAGERIAL FINANCE
Executive Summary:
The report is prepared with the intent for analysis of a particular project, which is estimated to be
initiated by Dell Inc. As a part of the project, the organisation is intending to set up a new plant
in order to manufacture laptops. After taking into consideration all the above-discussed aspects,
it could be stated that the project is acceptable for Dell Inc, since NPV, IRR and payback period
meet their respective desired criteria. However, it is to be noted that the organisation need not
use the same discount rate for all capital projects and it needs to adjust the same depending on
particular project risks.

2MANAGERIAL FINANCE
Table of Contents
Introduction:....................................................................................................................................3
Answer to Question 1:.....................................................................................................................3
Answer to Question 2:.....................................................................................................................8
Conclusion and recommendations:..................................................................................................9
References:....................................................................................................................................10
Appendices:...................................................................................................................................11

3MANAGERIAL FINANCE
Introduction:
The report is prepared with the intent for analysis of a particular project, which is
estimated to be initiated by Dell Inc. As a part of the project, the organisation is intending to set
up a new plant in order to manufacture laptops. The paper would emphasise on evaluating the
viability of the concerned project by a number of capital budgeting approaches that constitute of
internal rate of return (IRR), net present value (NPV) and discounted payback period. After
obtaining and analysing the outcomes of the project, recommendations would be provided to the
concerned organisation regarding the feasibility of the project.
Answer to Question 1:
a) Yearly depreciation expense:
(b) Yearly cash flows associated with the plant from Year 1 to Year 9: