This scenario analysis is centered around a fictitious company in the medical device equipment industry. It will test your ability to make a recommendation on new capital investment projects. To do this you will be required to answer two fundamental questions: 1) what are the projected cash flow for each product launch, and 2) what products would you launch and why.
1. Provide a brief 2-3 paragraph analysis justify your recommendation. You can use bullet points to highlight your main points.
2. More importantly include an additional excel file to show your 5-year cash flow analysis broken out by year for each product launch.
3. Also, include the relevant metrics that you used to evaluate the economic worth for each product that formed the basis of your recommendation.
The attached document contains the background information on this fictional company and the relevant financial assumptions surrounding each product launch. Again, please note that scenario analyses can be fairly ambiguous. In the “Background and History” and “Solutions” sections of this scenario I have provided you with most of the critical assumptions and data points that you will need to complete your analysis and recommendations. However, you will find that there are times when you will need to make an assumption to defend your recommendation. This is a fundamental part of this assignment as it tries to mimic the “real word” were many times an organization leader will be forced to make a decision without perfect knowledge.
In your analysis clearly state the assumptions that you are making that are in addition to that ones that have been provided to you. In these situations I will be evaluating the reasonableness of the assumptions that you make along with the persuasiveness of your argument. With this type of analysis there is usually no one right answer. With this in mind, I will be evaluating the strength of your argument based on how well you are able integrate course content and theory