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Project Proposal

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Submitted By bcicco04
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Project Proposal
Brian Cicco
FIN/575
May 12, 2014
Douglas Hartman

Project Proposal After reviewing the annual report of Ford Motor Company a proposal is developed to advise the organization on obtaining funding and managing a project budget to purchase equipment to increase worker safety. The initial investment is $25M and the yearly cash inflows are $5M for the second year, $10M for the third, $15M for the fourth, and $12M for the fifth year. The cash flows are at the beginning of the period and at a discount rate of 10%. Business needs are defined, including high-level deliverables to solve problems. After determining the calculations the project will either be accepted or rejected with the rationale explained for the decision. Needs and Deliverables Ford Motor Company has discovered that the company to increase worker safety. To accomplish this Ford has decided to purchase some equipment. There are many issues that surround safety such as insurance premiums, legal issues, morale, and health. The initial cost to improve safety will pay off in the end by saving money and improving quality in the areas mentioned. Deliverables to solve problems throughout this project include defining the problem and scope of the project, measuring and analyzing the present performance, isolating the problem, selecting the appropriate equipment, and control to ensure the target is met with the new equipment. Methodology: Strengths and Weaknesses This projects viability must be determined and the strengths and weaknesses of each methodology. To do this the NPV, IRR, profitability index, and payback methodology must be calculated. Defining these terms is vital to get a clear picture. "Net present value is the comparison of the present value of the payoffs less the present value of the costs of the project. If

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