Academic Report and Financial Calculations 04031 Essay

Academic Report and Financial Calculations 04031 - Essay Example A model of the HR function and its implications were critically evaluated in light of the chosen capital investment project and trading with its Co-share. As per the evaluation of the project suitable conclusions and recommendations were provided and in addition the reflective statements were prepared. Capital budgeting is a method through which a firm decides to invest in the long term investment proposals (Baker and English, 2011). Capital budgeting can also be measured as a scheduling process which helps in deciding which investment like new machinery, new products, replacement machinery and new plants can prove to be cost effective (Phaup and Kirschner, 2010). It is used for budgeting of vital capital investments. The different techniques for calculation used in the capital budgeting process are NPV method, IRR method, payback period and profitability index method. In the capital budgeting process, there exist some non financial qualitative aspects in case of project viability (Lan, Chung, Chu and Kuo, 2003). Every organization is recognized for their surroundings and norms. It becomes necessary to gauge in order to shape the behavior of the employees in an organization. There are three stages in capital budgeting analysis including decision analysis for building knowledge, op tion pricing for establishing position and discounted cash flow for making decision regarding investment (Garcia, Contreras, Correia and Muà ±oz, 2010). In context of project valuation, it is necessary for a company to ensure that their potential projects are in order to the employee’s culture because going further than that may crash the financial factors. The study is conducted to analyze the implications of the project and their impact on human resource (HR) (Law, 2004). The implications of the project includes capital budgeting calculations to choose the profitable project, evaluation of the chosen project, ethical considerations and relating a HR function model with the