Project Risk Finance & Monitoring

Running Head: Project Risk Finance & Monitoring
Project Risk
Finance &
Monitoring
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Project Risk Finance & Monitoring 1
Contents
Introduction......................................................................................................................................2
Part A...............................................................................................................................................2
Project Selection..........................................................................................................................2
Cost Management........................................................................................................................3
Funding........................................................................................................................................4
Implementation and Winding up.................................................................................................4
Analysis of Apple’s Equity Capital.................................................................................................5
Part B...............................................................................................................................................5
Conclusion and Recommendation...................................................................................................5
References........................................................................................................................................7

Project Risk Finance & Monitoring 2
Introduction
The paper is divided into two segments, part A and B that explains the functioning of the
company Apple in the external environment. The first part of the report involves selection of the
new project in the business environment of Apple for its growth and profitability. The cost
management of the project is discussed along with the funding process and implementation. The
company Apple require implementing the new product because of the depleting profits in the
target market. Further, part B of the report evaluates the net change in the cost and profits of the
company along with the suitability to invest in the new project. More details about the paper are
discussed below:
Part A
Project Selection
In order to select a specific project in the business environment, it is important for the company
Apple to consider various crucial factors for making investment decision. It should be noted that
it is important for the company to analyse the efficiency of the project before investing in it so as
to analyse its profitability in the external environment. There are various tools and strategies
used by the company to evaluate the profitability of the project that is discussed below:
 NPV: The Net Present Value model helps in analysing the lifecycle of the project in
respect of earning. This process helps in analysing that whether the project is going to be
profitable in long run or not. Negative NPV explains that the project is not profitable for
the business to invest in long run. Higher the NPV shows that higher level of growth and
profitability the company will receive in the external environment (Leyman, and
Vanhoucke 2016).
 Payback Period: the payback period technique refers to the amount of time that the
business takes to recover the cost of an investment in the business. In simple terms, it is
the length of the time that and investment will take in order to reach the breakeven point.
The adequacy of an investment is directly linked to its payback period. Shorter payback
period attracts investment (Senel Solmaz, Halicioglu, and Gunhan 2018).