AnalysisIntroductionThis project belongs to the engineering-efficiency category; therefore, it must address at least 3 of the 4 performance hurdles, which are 1. Impact on EPS; 2.Reimbursement; 3. Discounted cash flows and 4. Internal rate of return. In this article, some of those involved have explained and described their opinions; however, professional knowledge may have been lacking. Therefore, we will explain and clarify below. Management Analysis Capital Expenditure On the surface, ensuring that a project meets a range of consistent and prescribed criteria in order to be accepted appears to be good business practice. But in our opinion, we think DC is only focused on financial management. We think they should use the strategic map strategy. A strategy map provides a uniform and consistent way of describing this strategy, so that objectives and measures can be established and managed. The strategy map constitutes the missing link between strategy formulation and execution. (Norton and Kaplan, 2004 *1) Additionally, DC will not only focus on financial reporting; they also manage by human resources and other strategic elements. Additionally, any of the above financial calculations or assumptions could result in poor settlement or expectations being seriously biased. Economic/financial analysis Transport costs The Transport Division requested that the cost of tank wagons required for additional throughput be included in the initial expenditure of the Merseyside project was ignored by Frank Greystock. Therefore, he was not involved in the analysis of the Merseyside project. Regardless of how departmental budgets are established, best practices in capital budgeting make it clear that all side effects of a project should be included in cash flow projections (Schiff, 1988*2). In fact, transportation costs have a significant impact on cash flow as well as project value. Ignoring the addition of the budget for transport costs, and even though the Merseyside project may increase the total throughput, the transport division still cannot transfer the cost of transport. the throughput saved due to throughput exceeds the capacity of the original transfer utility. Therefore, a charge of £2 million will be added to the project. Impact – Cannibalization and Ramp-up Period The problems of two impacts present themselves in two ways. The first, more efficient factories, is likely to cannibalize sales of the Rotterdam factory. Second, the expected rate of return for clients must take into account a ramp-up period before the 7% additional revenue from the project can be achieved. Additionally, both impacts should be calculated into the project cash flows for the purposes of the final assessment..