During week 6 we develop the theory and application of capital budget analysis. The theory was robust, the calculations mathematically and logically defined, and many of the real-world problems, likely to be encountered, were addressed. As capital budgeting essentially re-invents the company through major long-term expenditures it is arguably one of the most critical functions that financial management performs. Based on my personal experiences, extensive empirical data, and antidotal data – many firms routinely experience significant success in their selection of capital projects.

The assignment for this topic consists if two parts:

1) For your first topic in this conference I would like for you to briefly review either your personal experiences and/or the financial literature to identify and present a description of one actual capital project/product success and the reasons attributed to the success.

In your response please provide financial information regarding the project (what is available): initial outlay, projected cash flows, final dollar profit.

Remember this is a one to two paragraph exercise – do not go overboard – a few hours research and summation is all that’s required. I am interested only in your short, concise description of the project and the major reasons you believe it was successful.

2) Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis success.

You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.

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