Analyze why, despite employing various investment appraisal techniques, large investment projects in big corporations may fail to...

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Finance

Analyze why, despite employing various investment appraisaltechniques, large investment projects in big corporations may failto deliver their estimated cash flows. Critically assess how afailed capital project may affect key stakeholders and shareholdervalue, and also shape the future strategy of investmentcapital.

(within 2000 words)

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The reason large investment projects in big corporation may fail to deliver the estimated cash flows is not doing enough due diligence on various parameters like revenue and cost estimates The revenue may be less than estimated due to change in market conditions change in customer preferences or change in macro economic conditions The competitor may come up with similar products which can    See Answer
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