Your advice has helped Largo Global Inc. (LGI) make substantive progress. Now, you must provide the means to achieve this increase in efficiency and productivity. You must recommend a plan for making the strategic investments that will keep LGI moving on a sustainable path.
Your Project 4 business report will focus on which assets to invest in or whether to disinvest. You will identify the types of assets LGI should eventually acquire and/or renew. You will also determine the investments that will help LGI improve its operations and generate the cash flow needed to improve its bottom line.
Competencies
Your work will be evaluated using the competencies listed below.
· 3.1: Identify numerical or mathematical information that is relevant in a problem or situation.
· 3.2: Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.
· 3.3: Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.
· 8.1: Evaluate major business/organizational systems and processes and make recommendations for improvement.
Step 1: Prepare for the Project
For the next two weeks, you will focus on an investment strategy that will increase the efficiency and productivity of LGI to keep the company moving in the right direction. You will pay attention to which assets to invest in and divest from to generate cash flow and improve the bottom line. Log into O’Reilly by following these instructions and complete the required reading. https://libanswers.umgc.edu/faq/259998
Required Reading
Parrino, R. Kidwell, D. S., & Bates, T. W. (2012). Fundamentals of corporate finance. Wiley.
Chapter 5: The Time Value of Money
· Section 5.1 to 5.4
Chapter 6: Discounted Cash Flows and Valuation
· Sections 6.1 to 6.4
Recommended Reading
Davis, C. E. & Davis, E. (2011). Managerial Accounting. Wiley. Chapter 9, Capital Budgeting
Step 2: Review and Practice
Using the Project 4 Review and Practice Guide, review investment techniques to set LGI on a path toward a sustainable future. Then apply what you have learned by completing the exercises and problems referenced in the Project 4 Review and Practice Guide.
You must review the guide and do the practice exercises and problems so that you
· are prepared to have informed discussions with your team about LGI’s investment strategy,
· understand which assets LGI should acquire and/or renew, and
· can use this information to make recommendations for improvements.
Complete this review and practice by the end of Week 7.
Review and Practice
You must complete the review and practice content to participate in the discussion in Step 3.
Project 4 Review and Practice Guide
Step 3: Participate in the Required Project 4 Discussion
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You have finished reviewing the material and performing the exercises, but you have some questions. Participate in the Project 4 class discussion. Respond to the two questions below by posting in the discussion; then, respond to two of your classmates’ discussion posts by the end of the week.
Discussion
Discuss the concepts that were most challenging for you in the readings and review material. How did the practice exercises help clarify these?
What did you learn that will help you determine which assets to invest in and where to disinvest to help LGI improve its operations, generate cash flow, and improve the bottom line?
Before you participate in the discussion activity, see MBA discussion guidelines.
Step 4: Complete the Analysis Calculation for Project 4
Your team has provided you with an Excel workbook containing LGI’s financials. You will use the Project 4 Excel workbook to perform discounting of cash flow and valuation calculations.
Complete the analysis calculation for the project:
· Download the Project 4 Excel Workbook, click the Instructions tab, and read the instructions.
· Calculate and evaluate the investment choices using the worksheets.
· If you would like instructor feedback on this step, submit your Excel file to the Assignments folder as a milestone by the end of Week 7. This is optional. If you choose to submit the milestone, you will receive instructor feedback you may use to make corrections before submitting your final Project 4. To distinguish the milestone submission from the file you will submit in Step 5, label your file as follows: P4_milestone_lastname_Calculation_date
Take Action
Submit your assignment to your instructor for review and feedback.
Follow these steps to access the assignment:
· Click My Tools in the top navigation bar.
· Click Assignments.
· Select the relevant assignment.
· You should use the comments your instructor made about your optional milestone submission to revise your calculations as needed. Next, proceed to Step 5, where you will answer questions about your analysis, make recommendations for LGI, and compile and submit your final report.
Course Resource
MBA Discussion Guidelines
Throughout the MBA program, you will be asked to participate in discussions. Assigned discussions, both individual and group work, are part of the process of developing your project deliverables.
In general, address your discussion posts to your classmates, rather than the instructor. Do not attach files; use only the discussion textbox. Your posts do not need the structure or format of formal business memos or reports. These discussions should be an informal exchange of ideas with your peers. You should, of course, still adhere to the norms of standard written English.
To receive the maximum benefit, you should participate in accordance with the guidelines provided below.
· timeliness
· initial posting(s) submitted by 11:59 PM ET on Saturday
· response(s) to other discussion postings submitted by 11:59 PM ET on Tuesday
· proper citation
· cite sources any time you quote or paraphrase an idea or evidence from another work
· use APA citation style (example below)
· meaningful engagement
· posts contribute to substantive scholarly discussion
· student demonstrates professionalism in interaction with peers
· posts critically discuss topics presented in the current week and, when appropriate, in previous weeks
· posts are grounded in the theories and concepts presented in the course
Example:
Based on the UMGC library’s guidance on APA citations , including guidance on how to cite content from the UMGC online classroom, please use the following format for classroom resources with no author or no date:
Title of resource. (n.d.). Document posted in University of Maryland Global Campus Course Name Course Number online classroom, archived at: hyperlink
SWOT analysis. (n.d.). Document posted in University of Maryland Global Campus MBA 610 2182 online classroom, archived at: https://lti.umgc.edu/contentadaptor/page/topic?keyword=SWOT%20Analysis