Purchase Solution

Analyzing Capital Investments

Not what you're looking for?

Ask Custom Question

Visit the website of Johnson Controls Inc. located at http://www.johnsoncontrols.com, and review its 2012 financial forecasts.

According to the forecasts, Johnson Controls will increase capital investments to approximately $1.7 billion. More than 70% of the company's capital expenditures in 2012 are associated with growth and margin expansion opportunities.

1. Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls int he emerging markets to reduce risk providing a rationals of how risk will be reduced.

2. Assess the potential impact of inflation on planned capital investments in CHina and examine approaches for an accurate evaluation of the investments. SUggest how this knowledge may impact management's decisions.

3. Contrast the modifications you would make in evaluating the projects to increase internal capacity in North America to evaluating expansion projects in the global market and how this information will impact the decisions made related to expansion.

4. Examine the benefits of using sensitivity analysis in evaluating the projects for Johnson Controls and how this approach can provide a competitive advantage for the company.

Purchase this Solution

Solution Summary

The expert analyzes the capital investments. The methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls for emerging markets to reduce risk providing is determined.

Solution Preview


Kindly find attached tutorial having some ideas, references and content related to the capital ...

Purchase this Solution

Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.