B6022.52

Assignment 2: Required Assignment 2—Genesis Energy Capital Plan Report

The Genesis Energy operations management team, nearing completion of its agreement with Sensible Essentials, was asked by senior management to present a capital plan for the operating expansion. The capital plan was not to be a wish list but an analysis of the necessary expenditures to successfully establish a fully equipped operating facility overseas.

In addition, senior management requested meaningful financial and operating metrics to ensure that the performance objectives for the facility were being met. The operations management team was given five days to accomplish the following:

1. Calculate the firm’s WACC.
2. Prepare and analyze each planned capital expenditure.
3. Evaluate, rank, and recommend the capital expenditures according to beneficial value to the organization, using the evaluation tools NPV, payback, and IRR. Evaluation, ranking, and recommendations should be by category of expenditures. For example, facility, equipment 1, 2, and 3, and inspection.
4. Using the selected choices in part three, calculate the full cost of establishing a fully equipped facility. This would include the facility, equipment 1, 2, and 3, and inspection. In addition, calculate the payback, NPV, and IRR for the completed facility.
5. Construct and recommend between three and five metrics to measure the performance of the organization. At least one metric should be dividend decision-making driven.
6. Prepare an executive summary along with a separate document showing the calculations.

Part I

Following the example of the operations management team, do the following:

1. Because of limited resources in an era of plentiful opportunities, companies must carefully select investments. You analyzed Genesis Energy’s expansion plans and explained your findings in M4: Assignment 1.

   This assignment is based on those findings. In this assignment, you will create a PowerPoint presentation that will include the following information:

   • An executive summary of your findings from M4: Assignment 1. Be sure to adhere to the following:
     • The presentation should be approximately 6–8 minutes (or 10–12 slides).
     • A statement of the problem or topic is included.
     • A concise analysis of the findings is included.
     • Specific details from M4: Assignment 1 to highlight or support the summary are incorporated.

   Develop a 10–12-slide presentation in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2.ppt.

   By Wednesday, April 26, 2017, deliver your assignment to the M5: Assignment 2 Dropbox.