You are required to develop a capital budgeting analysis for a hypothetical expa

You are required to develop a capital budgeting analysis for a hypothetical expansion project that would be
conducted in one of a listed company in Indonesia. For the project, you can assume and develop the case as
you like (all things related to managerial decisions), but you have to use real data as much as you can when
you develop your sales projection and determine the financing cost (cost of capital).
In order to develop a good capital budgeting analysis, you have to develop your project’s financial model
(using Microsoft Excel). Your financial model should consist of at least following tabs:
• Benchmark Data tab;
• Market & Economic Data tab;
• Assumption tab;
• Income Statement Projection tab;
• Balance Sheet Projection tab;
• Cash Flow Statement Projection tab;
• Cost of Goods Sold tab;
• Depreciation and/or Amortization tab;
• Loan Amortization tab;
• Net Working Capital Projection tab;
• Cost of Capital (Weighted Average Cost of Capital) Calculation tab;
• Capital Budgeting Cash Flows Projection tab;
• Capital Budgeting Analysis tab;
• Financial Ratio Projection tab; and
• Risk Assessment tab.
After you develop your financial model, you must develop a capital budgeting analysis report to be reviewed
by the top management of your company (please provide a complete report in the form of PDF file). Your
capital budgeting analysis report should consist of at least following sections:
1. Company Background
• Company Profile
• Industry Overview
2. Project Background
• Project Desсrіption
• Product and Market Desсrіption (historical and projected sales quantity and price)
• Capital Expenditure (fixed assets and net working capital requirement)
• Operating Expenditure (COGS and operating expenses)
• Financing Plan
3. Financial Statement Projection
• Income Statement, Balance Sheet, and Cash Flow Statement Projection
• You have to provide your depreciation/amortization and loan amortization schedule on the
4. Capital Budgeting Analysis
• Cost of Capital Analysis
• Capital Budgeting Cash Flows (Free Cash Flow to the Firm and Free Cash Flow to Equity)
• Capital Budgeting Analysis (using capital budgeting techniques)
• Financial model sustainability analysis (using financial ratios)
• Risk Assessment (using sensitivity analysis, scenario analysis, and monte Carlo simulation)
5. Conclusion and Recommendation

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