Estimation of cost of capital

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Reference no: EM133114075

Build a cash flow (both write-up and spreadsheet) for a project/investment in assets based on real case/observed case/own case. Write-up must be cut and paste to excel. The following are the requirements:

1. Please ensure the figures are as real as possible based on research. You can provide evidence of your research (if possible)

2. Initial cost/ Investment (CF0)

3. Net working capital (year 0 and recovery period only)

4. Inflation - cost analysis (VC and FC)

5. Depreciation on asset(s) - straight line to zero or straight line to salvage value method

6. Salvage Value and tax gain/loss

7. Estimation of cost of capital - Pure play method is acceptable but with evidence

8. Estimate NPV and IRR

9. Conduct NPV sensitivity analysis - Select on two variables with high uncertainty. Run sensitivity analysis one at a time and through the analysis, establish which variables are more critical and most likely affect the final decision on this project.

Reference no: EM133114075

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