Capital Budgeting and Investment Appraisal

Capital budgeting, or investment appraisal, is the planning process used to determine whether an organization's long-term investments such as new machinery, replacement machinery, new plants, new products etc. are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings). It is the process of allocating resources for major capital, or investment, expenditures. One of the primary goals of capital budgeting investments is to increase the value of the firm to the shareholders.


To do that, it is needed to evaluate future cash flows, the final return and whether it will serve management expectations. Headstart International will cover the whole work to provide the management with the best decision making information.


Headstart International has rich experience in handling large-scale projects from manufacturing to service industry. We provide a detailed analysis of cash flows as well as the rationality and possible accuracy of such assumptions that give rise to the business cash flows.​


Services offered by Headstart International include:​


  • Capital Budgeting involving DCF Analysis of investments; calculation of NPV, IRR and PI
  • Sensitivity Analysis
  • Financial Modeling
  • Preparation of projected Financial Statements
  • Calculation and interpretations of EBITDA, Net Profit Margin, working capital ratios and other relevant indicators

WE DELIVER:

  • Customer Focus
  • Expertise and Experience
  • Ethics
  • Holistic Management Support
  • Multi-Skilled and Experience
  • Partnership
  • Sustainability