Managing Financial Resources Report 2022

Running head: MANAGING FINANCIAL RESOURCES
Managing Financial Resources
Name of the Student
Name of the University
Author’s Note

MANAGING FINANCIAL RESOURCES1
Executive Summary
This current report has focused on the managing of the financial resources of the company in
which the cost of equity of the project has been determined along with considering the
discount factor for the project. Electrics Inc. has forecasted the cash flow for the next eight
upcoming years along with capital budgeting techniques, which consist of the sensitivity of
the project based on the scenario. The study also includes the recommendation in which the
project should be accepted or not.

MANAGING FINANCIAL RESOURCES2
Table of Contents
Introduction................................................................................................................................3
Energy cost situation..................................................................................................................3
Cost of equity of project.............................................................................................................3
Discount factor used for evaluating electric motor project........................................................4
Forecasting cash flow for next eight years along with assumptions..........................................4
Appropriate capital budgeting technique for evaluating the project..........................................4
Evaluating the sensitivity of the project’s NPV.........................................................................5
Overall riskiness of the project..................................................................................................6
Controllers that are required to be used.....................................................................................6
Recommendation for accepting or rejecting the project along with basis.................................6
Conclusion..................................................................................................................................7
References and Bibliography.....................................................................................................8