CPA AND RISK MGT

***1 to 2 page word document and an excel spreadsheet***

For this assignment, you will create a capital plan. Your plan will take into consideration all of the information you know about Universal Parts Company. Additionally, you will make and document any assumptions necessary to plan for UPC’s capital needs. The director of finance has provided you with the following information:

• UPC will need $100 million in the next 10 years to sustain its growth and remain competitive in its market.
• UPC’s desired capital structure is 30% debt and 70% equity.
• UPC will sell its fleet of trucks within the next 12 months. Instead, the company plans to lease trucks for shipping products to customers.

Individual Portion:

Using course materials and the library, identify 4 sections (or stages) in designing a capital plan for UPC. For instance, you may pick 4 sections in the capital planning cycle. Your group should share the sections in the planning cycle such that the group will cover all of the sections in the cycle.

Sections in a capital plan may include the following:

1. Capacity condition evaluation and needs assessment
2. Project proposal discussions and management
3. Capital project submission
4. Financial analysis of projects
5. Analysis of project impact and risks
6. Appropriations
7. Ranking of project options and scenarios
8. Project filtering and accept or reject decisions
9. Analysis of capital sources and funding
10. Allocation of funds among independent or mutually exclusive projects
11. Review and approval of capital plan
12. Capital budget reviews, monitoring, and reporting