Financial Analyst At Glencolin International

Financial Analyst At Glencolin International Student Help


Don’t use plagiarized sources. Get Your Custom Essay on
Financial Analyst At Glencolin International
Just from $9/Page

Order Essay

As a financial analyst at Glencolin International (GI) you have been asked to revisit your analysis of the two capital investment alternatives submitted by the production department
of the firm. (Detailed discussion of these alternatives is in the Mini Case at the end of
Chapter 10.) The CFO is concerned that the analysis to date has not really addressed the
risk in this project. Your task is to employ scenario and sensitivity analysis to explore how
your original recommendation might change when subjected to a number of “what-ifs.
In your discussions with the CFO, the CIO and the head of the production department, you
have pinpointed two key inputs to the capital budgeting decision: initial software
development costs and expected savings in production costs (before tax). By properly
designing the contract for software development, you are confident that initial software
costs for each alternative can be kept in a range of plus or minus 15 percent of the original
estimates. Savings in production costs are less certain because the software will involve
new technology that has not been implemented before. An appropriate range for these costs
is plus or minus 40 percent of the original estimates.
As the capital budgeting analyst, you are required to answer the following in your memo to
the CFO:
Conduct sensitivity analysis to determine which of the two inputs has a greater input
on the choice between the two projects.
Conduct scenario analysis to assess the risks of each alternative in turn. What are
your conclusions?
Explain what your sensitivity and scenario analyses tell you about your original

Continue to order
Get a quote

Post navigation
Real estate assetsWal-Mart Stores, Inc.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.