Overview
For this milestone, you will continue your financial analysis, developing baseline projections for the next 10 years, as well as projections to reflect expansion into the emerging market.
Prompt
As a project manager working for a large United States–based organization planning to establish a manufacturing plant in an emerging market, you will need to complete financial justification modeling and communicate it to your executive team. You will add your financial justification modeling to the Excel template that you used for Milestone One.
Your submission should include the following:
Financial Justification Modeling
In this section, you will use the Excel template to develop baseline financial projections for your organization for the next 10 years, and a second set of 10-year projections to reflect expansion into the emerging market. You will use this information to compare the financial feasibility of an international expansion for the organization.
Estimate a 10-year baseline projection for your organization. Your response should include the following financial elements: revenue, expenses, cash flow, ratios of return on assets, return on equity, return on capital, operating margin, gross margin, net profit margin.
Using the same set of assumptions from the previous projection, estimate a 10-year projection that includes the expansion into the emerging market. Your response should include the following financial elements: revenue, expenses, cash flow, ratios of return on assets, return on equity, return on capital, operating margin, gross margin, net profit margin.
Compare the financial modeling you conducted above and provide justification to the organization’s executives concerning your 10-year projections. Your response should be supported using financial justification modeling.
What to Submit
Your submission should include your completed Excel template and a separate Word document with your comparison. Your comparison should be 1–2 pages in length (not including title or reference pages) and use 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
The company is Catterpillar INC.
Excel Data will be provided once order is approved.
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