Project Risk, Finance and Monitoring : Assignment

Added on - 21 Feb 2021

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Project Risk, Finance andMonitoring
EXECUTIVE SUMMARYProject riskis the identification ofrisksfollowed by application of resources to minimize theprobability of unfortunate events.The present report is abouthow should Google determine whatprojects to undertake and what ones to avoid, what tools and practices are available to projectanalysts in this industry? What is the role of project cost management for Google why is itimportant, what strategies should be adopted in order to effectively manage project costs. Thecompany should be concerned with creating consistent solutions situated between clients' needsand organizational practices. Google identified the establishment of performance measures, suchas quality, production speed or attendance, reliability, flexibility and costs, as the practicalaspects of competitive advantage.Equity financeis money sourced from within the business.Self-funding is often the first step in seeking finance and involves funding purely throughpersonal finances and revenue from the business.Net present value (NPV) is the differencebetween the present value of future cash inflows and the present value of future cash outflowsover a period. Apple should consider investing in the project as the Net present value of theproject is positive which makes it a profitable investment.
Table of ContentsEXECUTIVE SUMMARY.......................................................................................................................2INTRODUCTION.....................................................................................................................................4PART A......................................................................................................................................................4Project selection......................................................................................................................................4Cost management....................................................................................................................................5Funding...................................................................................................................................................6PART B......................................................................................................................................................8a.) Current equity capital issue of Apple, why does companies raise equity capital and what happenedto share price of Apple in 2019 and why this happened?.........................................................................8b) i) Future Cash flow of the projects are-...............................................................................................9b) ii). NPV of the project-......................................................................................................................10b) iii). Apple should invest in this project-............................................................................................11b) iv). The cheapest way to finance would be depending on the Cost of Equity or the cost of Debt. Ifapple could refinance through bonds only then it would affect the NPV of the project.........................11CONCLUSION........................................................................................................................................11REFERENCES........................................................................................................................................13
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