Prepare a schedule of cash flows for the project

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Assignment

FoodPlanet PLC

REQUIRED:

Question 1: Prepare a schedule of cash flowsfor the project. Calculate, using the information available, the Net Present Value of the proposal to sell online shopping and run online store.

Include in your answer a justification for whether or not you recommend FoodPlanet to go ahead with this proposal.

In this question you are required to critically discuss the effect of the cost of capital on financial decisions.

Question 2: Calculate the payback period for the proposed project to run online store, if the company has a policy of only accepting projects with payback of less than three years, would this be accepted?

Comment on the suitability of the payback method for the new investment and comment how to develop an appropriate payback year for the new project.

Question 3: Discuss the choice of financing for the project to expand the e-grocery. In this question you should clearly reference and discuss the general advantages and disadvantages of the financing choices both in management's

Question 4: Critically review the article below and discuss capital budgeting practices in the UK. (25%) Arnold and Hatzopoulos, 2000, The Theory-Practice Gap in Capital Budgeting: Evidence from the United Kingdom, Journal of Business Finance & Accounting, Vol. 27, pp. 603-626. Note: the final 10% of the grade will be allocated for presentation, referencing, and word count.

You are required to type word count in the report

Attachment:- Assignment for Mgmt Decision.rar

Verified Expert

The assignment covers analysis of an investment proposal on the basis of NPV and payback period. Different sources of finance has also been considered for financing the project. Lastly, an article on capital budgeting methods in the UK have been critically reviewed.

Reference no: EM132796485

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