Finance - write up a executive summary and recommendation Essay

Finance - write up a executive summary and recommendation - Essay Example These expenses are related to the land bought to expand business in future. The dilemma with the management of the company is what should be done with this land. They have two options; first option is that they can sell off this land for an impressive amount of $235,000 and also save the increasing annual maintenance expenses @3% which is $16,000 at the moment. The second option with the management is to use this land in expanding the existing business by setting up a new spray booth and workshop. This report provides an analysis and evaluation of these two options in hand for FBSR. We have used the capital budgeting tools such as Net present value (NPV), operating cash flow and sensitivity analysis in order to determine the feasibility of the options available at hand. The relevant calculations, with respect to each of the analysis technique used, can be found in the appendices. Our analysis is all depending on John’s assumptions which means our belief is the probability of a ssumption would range from NPV various. Within this analysis of the insurance project of the business, operation cash flow and profitability is the decide the feasibility of business. it’s the company’s choice of whether or not to take the insurance project in the business. Meanwhile, 10% increase or decrease in revenue and wages & maintenance fee of is under concern.