Research Paper on:
Caledonia Plc Case Study

Unformatted Sample Text from the Research Paper:
costs to this project which may also have the potential to create commercial efficiency with cost savings. In order to look at the feasibility the financial and the non financial  costs and benefits need to be considered. The costs are noted as bring both financial and environmental. However as this is a project that would be motivated by  economic reasoning the first consideration has to be the financial consideration. If the project is not viable economically then the first hurdle is failed and the environmental considerations do not  have to be considered as there is no chance that the project would go ahead. When looking at project such as this the most appropriate approach may be that  of the payback period and the net present value (NPV). This is a way of ascertaining the potential value of a project in todays terms. The usual approach is to  take the future revenue streams and to discount them in order to get the their equivalent value today. However although this is an investment with a financial motivations, there is  not a revenue stream that can be projected, as this would be for the internal market for the company. Moreover, it could create a high level of savings. Savings that  are made may be seen as equal to revenue. We are also given two different scenarios where there may be different demands for natural gas, due to the potentially different  market condition. We are told the project will last between 5 and ten years, for the purposes of this case we will assume the ten year scenario, but the calculations  are presented in a way that the student could amend these figures in their own paper. The first stage of the process