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Capital Projects New Acquisition

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Find one new acquisition that ExxonMobil needs as a new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded? Issues might be:
? Risk
? Cost
? Politics (getting it through committees)
? Public Relations
? etc.,

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Below are my answers.

ANSWERS

One new acquisition that ExxonMobil Corporation needs as a new possible investment item is the technology to produce or transport energy by harnessing the power of waves. However, there are several challenges I will be facing in estimating the cash flows from this investment. Several of these issues are:
1. Cost. The total costs of the investment in wave power might be very difficult to estimate. Though several companies have already put up waver wave devices, the information to estimate how much the upkeep of such devices is are difficult to obtain. Moreover, since the technology is new, it is highly probable that ExxonMobil will make periodic investments in addition to the company's initial cash outlay just to maintain and ...

Solution Summary

Capital projects new acquisition is examined.

$2.19