Assuming that you are a manager of a multinational company, design a capital budgeting analysis framework that you would use to determine whether or not to invest in a new project. The project involves the construction of a new manufacturing plant in a developing country, which is expected to increase the company’s production capacity by 30%.
Your analysis should cover the following aspects:
- The financial feasibility of the project, including the expected cash flows, net present value (NPV), internal rate of return (IRR), and payback period.
- The potential risks and uncertainties associated with the project, such as political, economic, and currency risks, and how these risks should be incorporated into the analysis.
- The impact of the project on the company’s overall strategic goals and how it aligns with the company’s long-term growth strategy.
- The ethical implications of the project, including any potential environmental or social impact, and how these should be taken into account in the decision-making process.
Based on your analysis, make a recommendation on whether or not to invest in the project, and explain the reasons behind your decision.
