As the newly promoted General Manager, discuss five non-quantifiable benefits of a sustained investment to shareholders to enable them to enact new policies at the ensuing Annual General Meeting.

What is meant by the "reinvestment assumption" and how does this differ between NPV method and the IRR? What does this difference (if any) mean to the outcome of a specific project, shareholders and investors in general?

Prepare the core guidelines for the capital investment policies in a healthcare organization (specialty care clinic). Recommend investment project appraisal method(s). Please consider the corporate cost of capital and the expected rate of return of current shareholders. Please recognize various categories of capital projects relevant for this type of the healthcare organization. Please list and explain all reasons behind possible overstatement of the incremental cash flows to be generated by the investment project.

In March 2023, the management team of Londonderry Air (LA), met to discuss a proposal to purchase five short-haul aircraft at a total cost of $25 million. There was general enthusiasm for the investment, and the new aircraft were expected to generate an annual cash flow of of $4 million for 20 years.