Financial Analytics for Managerial Decisions Case Study BUSM 4741

This case study presents a comprehensive financial analysis, addressing key concepts such as Weighted Average Cost of Capital (WACC) and Net Present Value (NPV). The solution calculates WACC, considering the cost of equity, preference shares, and bonds. It then performs an NPV analysis for different investment options, including replacing an old machine with EcoSleek and XeonPro models, and outsourcing. The analysis incorporates depreciation, tax implications, and working capital adjustments. Furthermore, the solution employs the concept of Equated Annual Annuity to compare projects with different lifespans, identifying the optimal investment choice. The document also provides detailed explanations of financial terms, assumptions, and references to support the analysis. The case study offers a complete solution to the BUSM 4741 assignment, providing a practical application of financial analytics for managerial decisions.