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. Download the Capital Budgeting spreadsheet, and compute the WACC for Genesis Energy.
2. Using the information provided in the spreadsheet, analyze Genesis Energy’s project options. Then, calculate the periodic and cumulative net cash flows for each potential project and its associated options. Please note that there are five projects (facility, equipment pieces 1, 2, and 3, and internal inspection), and that each project offers multiple-configuration options (facility size, equipment type, etc.).
3. Evaluate, rank, and recommend a specific option for each capital project according to beneficial value to the organization, using the evaluation tools NPV, payback, and IRR.
4. Construct and recommend between three and five metrics to measure the performance of the new operating strategy. At least one metric should reflect dividend policy as it relates to rewarding shareholders.
5. Prepare an executive summary describing your recommendations for each project and the overall cost, net cash flows, and expected returns of the operating configuration that you recommend. Be sure to justify your recommendations in terms of the investment criteria applied in Step 3 above. Be sure to report the full cost of the facility as it is configured per your recommendations. Present and justify your operating strategy performance metrics.

Your complete report should include all of your calculations as appendices (5 pages, or 1 page for each project).

Part II—Executive Summary Presentation

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 M5: 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 M5: 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 M5: 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, August 12, 2015, deliver your assignment to the M5: Assignment 2 Dropbox.

Read the Decision: Point Measuring Our Worth. Page 277.

This Decision Point deals with how we measure the intrinsic value of a life in addition to the instrumental value.

The scenario discussed is that of the Ford Pinto, which involves a decision that teaches the hazards of considering only the instrumental value of a life.

In 1968, Ford Motor Company made a historic decision regarding the Pinto, which was engineered with a rear gas tank assembly that had a tendency to explode in accidents that involved some rear-end collisions. The company allowed the Pinto to remain on the market after it determined that it would be more costly to engage in a recall effort than to pay out the costs of liability for injuries and deaths incurred.

In an infamous memo, Ford’s senior management calculated what the company would likely have to pay per life lost. It is noteworthy that these estimates were not Ford’s alone but were based on figures from the National Highway Traffic Safety Administration. Using these figures, the costs for recalling and modifying the Pinto were $121 million, while the costs for settling cases in which injuries were expected to occur would be only about $50 million.

Write a 2-3 page, APA style paper considering the following questions when assessing this scenario:

1. How should the decision-making process be handled.
2. How should the intrinsic as well as the instrumental value of a human life be determined?
3. Consider how you would measure your own worth or the value of someone close to you. Who are their stakeholders and what is their value to each of them? How will they measure it financially?
   • How much would your stakeholders suffer if they lost you?
   • How much do you currently contribute to society and what would society lose if you were not here?
   • How much would society benefit if you continued to survive?

Businesses have reasons to consider these issues, though extraordinarily difficult; how would you prefer that they reach conclusions in these areas? Provide 3-5 APA style references both inline and at the end of the paper to support your analysis.

Note: This is your opportunity to demonstrate your knowledge of the week’s theory linked to personal opinion and outside evidence.

SP180  Principles of Public Speaking

Directions:  Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading.  Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar.  Sources must be cited in APA format.  Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the “Assignment Format” page for specific format requirements.

1.      Create a complete preparation outline using the outline template below.

2.      Choose from one of the topics below to develop into an outline.

a.       Why banning the use of cell phones while driving should be mandatory nationwide

b.      What I see as the biggest challenges young adults face today

3.      State the general purpose, specific purpose, and central idea clearly and in the appropriate form.

4.      Limit your main points and supporting materials to no more than three.

5.      State your main points and supporting materials in complete sentences.

6.      Summarize key points of introduction.

7.      Summarize the conclusion in one statement.

8.      Based on your submitted outline, begin writing the first draft of your speech while studying the next lesson.  In Lesson 7, you will study how to write the

components of your speech.  The outcome of this process is a final written speech to be submitted as your final assignment in Lesson 7.

emergency incidents assignment 

1. Go to “FRB: Press Release—FOMC statement—December 16, 2009.”
2.  You should now find a press release from the Board of Governors of the Federal Reserve System, dated December 16, 2009, which discusses the decisions of the Federal Open Market Committee (FOMC) for that date.

This release also states that the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. Additionally, the release states that the FOMC has decided to gradually reduce “the pace” of such Fed purchases. Discuss why you believe that the FOMC has made such a decision, and explain the consequences of such a decision on the economy.

In your answer, discuss the Federal Reserve’s use of open-market operations to influence the money supply and the respective consequences of such actions. Include a discussion of the money multiplier effect in your response. Justify your conclusions and provide appropriate examples.

Using Microsoft Word, submit your responses in the form of a short paper (1 ½ – 2 pages).