Calculate the npv of the decision to undertake the project

Assignment Help Financial Management

Reference no: EM132368209

Assignment

Part 1 - Financing the Business

Data provided

Your client has approached you about a business the client would like to start. You will be provided with basic information about the clientâ??s proposed business.

Tasks required

Describe and discuss the various sources of finance available to the business, both in the starting up of the business and to finance future expansion.

Explain the advantages and disadvantages of the different sources of finance in different situations.

Make specific recommendations as to which sources of finance would be best for this business, both in the starting up of the business and to finance future expansion.

Part 2 - Preparing the Financial Statements

Data provided

Your clientâ??s business has now been up and running for one year. You will be provided with detailed financial data relating to the value of assets, liabilities and equity, as well as revenue and expenditure over the past year.

Tasks required

Prepare the Balance Sheet, Profit and Loss Statement and Statement of Cash Flows.

Part 3 - Financial Statement Analysis

Data provided

Another 3 years have passed. You will be provided with the firmâ??s most Balance Sheets, Profit and Loss Statemenst and Statements of Cash Flows for the past 3 years.

You will also be provided with the ratios for similar businesses (i.e. industry averages) for each of these ratios.

Tasks required

Calculate each of a set of specified financial ratios for the last three years.

Discuss any trends you have identified and discuss strengths and weaknesses compared to similar businesses.

Give an overall view of the financial health of the firm.

Part 4 (a) - Cost of Capital

Data provided

You will be provided with the firm's most recent Balance Sheet.

Tasks required

Calculate the firmâ??s Cost of Capital.

Part 4 (b) - Project Evaluation

Data provided

You will also be provided with information about a project the firm is planning to undertake.

Tasks required

Forecast future cash flows for the project

Calculate the NPV of the decision to undertake the project (using the firmâ??s cost of capital as the discount rate)

Make a recommendation as to whether or not the firm should undertake the project.

Reference no: EM132368209

Questions Cloud

Lose an electron to become sodium ion : Why is sodium (atomic number 11) inclined to lose an electron to become sodium ion (Na+), while chlorine (atomic number 17) is inclined to take up

What determines if an atom is chemically reactive : What determines if an atom is chemically reactive? Is neon (the gas once lighting the Las Vegas strip) chemically reactive? Explain.

How are electrons placed into the orbitals : Given that fluorine has an atomic number of 9, how are electrons placed into the orbitals? In what sense it the outer electron shell incomplete?

Expected in the typical nitrogen atom : Given that nitrogen has an atomic number of 7, how many protons, neutrons, and electrons are expected in the typical nitrogen atom?

Calculate the npv of the decision to undertake the project : BUS5IAF -INTRODUCTION TO ACCOUNTING AND FINANCE-La Trobe University-Australia-Calculate the NPV of the decision to undertake the project.

How did the thickness of muscle at the caudal peduncle : How did the thickness of muscle at the caudal peduncle compare to the thickness of muscle at the side of the body?

What is a density-gradient centrifugation : What is a density-gradient centrifugation? Please explain in simple terms. It is in regards to the Meselson-Stahl study.

Develop logical network design based on the scenario : COIT20264 Network Design Assignment, Central Queensland University, Australia. Develop logical network design based on the scenario

Describe the membranes that are associated : Describe the membranes that are associated with thoracic cavity?

Reviews

len2368209

9/9/2019 4:40:22 AM

Recommendation of the most appropriate sources of finance for this business in the start-up phase . This should take into account the size and nature of this business, explain why these sources are appropriate and discuss reasons why other sources would not be appropriate. Discussion of appropriate source of finance for future expansion of this business. This should take into account the size and nature of this business, explain why these sources are appropriate and discuss reasons why other sources would not be appropriate.

len2368209

9/9/2019 4:39:45 AM

The data for each of the 4 parts of the Assignment will be provided via an Excel file. You will need to be able to download and open this Excel file, and you submit your answers via the Excel file. Some students may find that the file does not display properly on an Apple device. If this is the case, it may be that you will need to view the data and complete the assignment on a PC, such as one in the library, in order to view the data to complete each part of the assignment. Please email the subject coordinator if this happens so that hopefully the problem can be minimised.

Write a Review

Required(*) Message

Financial Management Questions & Answers

Ebit and leverage

Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. assuming that Kaelea goes through with recapitalization

New machine to replace the existing machine

Determine whether Hillsong should purchase the new machine to replace the existing machine?

Producing too much air pollution on typical island

Your boss believes the company's power plant is producing too much air pollution on a typical island.

The total book value of the firms equity

The total book value of the firm’s equity is $12 million; book value per share is $24. The stock sells for a price of $45 per share, and the cost of equity is 15%. The firm’s bonds have a face value of $6 million and sell at a price of 130% of face v..

What is the target stock price in five years

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. What is the target stock price in five years?..

Which currency is trading at a forward premium

You expect to receive an income in JPY in 180 days from now. You wish to guarantee the AUD equivalent of your JPY income, using a forward market transaction. The current spot rate is AUD/JPY 95.46, with money market interest rates over six months of ..

Implement a survey on the companys intranet

Write a one- or two-page proposal to the rest of the management team (your peers) to implement a survey on the company's intranet.

What will be the percentage decrease in profits

What are expected profits based on these expectations? If sales are 10% below expectation, what will be the percentage decrease in profits?

What is the yield on seven year treasury note

The real risk-free rate is 2%. Inflation is expected to be 3.4% this year, 4.5% next year, and 2.7% thereafter. What is the yield on a 7-year Treasury note?

Calculate the required return of hannah stock

You are currently only invested in the Natasha Fund? (aside from? risk-free securities). Calculate the required return of Hannah stock. Is your broker? right?

What is the company WACC

The total book value of WTC’s equity is $8 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 11%. The firm’s bonds have a face value of $4 million and sell at a price of 110% of face valu..

Discuss the implications for the mutual fund industry

A key result of the CAPM is that it implies a unique market portfolio of risky assets and that every investor, regardless of risk preferences, agrees.

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages