Assignment: Fundamentals of Finance / Fundamentals of Accounting and Finance
Instructions
Case study
"Foster's Construction Ltd"
Your role
You are Harry (or Harriet) Simons, recent graduate and newly appointed assistant to Sonya Carson, the Director of Capital Investments (CI) for Foster's Construction Ltd. Your six-month probationary period is almost up and you are keen to make a good impression.
Required:
You have been tasked by Sonya to produce the following coursework elements:
1) GROUP PRESENTATION (CW1): A 15-minute presentation on the investment appraisal of the proposed project for the upcoming meeting of the Board of Directors. The presentation should include:
• An investment analysis of the proposed project discussed in the attached data. Your projected cash flows should include the impact of corporation tax, capital allowances and you should use NPV as the discriminator.
• A scenario analysis, including sensitivity analysis, which shows the effects of a range of changes in the estimates on the investment project's NPV value.
• A short discussion of other financial and non-financial factors involved in making investments in the proposed capital assets.
2) INDIVIDUAL REPORT (CW2): You have been tasked to produce a business report on the proposed capital investment project (see the following case study) for use by the Board of Directors in their upcoming meeting. The report should contain a short discussion of sources of finance for the proposed capital investment project and a short discussion of the gap between the theory and practice of capital budgeting.
Learning outcomes tested by the GROUP presentation
• Compare and contrast costs in investment appraisal.
• Undertake discounted cash flow calculations taking inflation, tax and capital allowances into account where appropriate.
• Identify and apply techniques to deal with investment decisions and discriminate between relevant and irrelevant information for decision-making purposes.
• Apply appropriate knowledge, analytical techniques and concepts to problems and issues arising from familiar and unfamiliar situations.
• Extract and critically analyse data from different sources.
• Identify and discuss financial considerations arising from sensitivity analysis.
• Think critically; examine problems and issues from a number of perspectives, challenging viewpoints, ideas and concepts, and present good arguments.
• Present information in a coherent presentation to professional standards of organisation, clarity and logical coherence.
• Discuss and defend ideas, concepts and views effectively through verbal communication.
• Use appropriate IT packages to aid efficient searching, communicating and presentation of information (general IT skills include use of standard word processing packages, internet and spreadsheets).
Learning outcomes tested by the INDIVIDUAL report
• Apply appropriate knowledge, analytical techniques and concepts to problems and issues arising from familiar and unfamiliar situations;
• Think critically, examine problems and issues from a number of perspectives, challenging viewpoints, ideas and concepts, and present good arguments;
• Present written information in a report format to professional standards of organisation, clarity and logical coherence;
• Discuss and defend ideas, concepts and views effectively through written communication;
• Use appropriate IT packages to aid efficient searching, communicating and presentation of information (general IT skills include use of standard word processing packages, internet and spreadsheets).
Group Presentations
You will be allocated by the module leaders in a group with 4/5 members (You are not allowed to change or choose your group). The presentations will take place on the 4th December and 6th December 2018, the presentation schedule will be released in due course. As usual, full attendance will be expected on both days, even if your group is not presenting. 10% of your mark will come from peer assessment, you will be assessing your peers' presentations. You will need to present your findings professionally and clearly.
Your presentation will be limited by 15 minutes. You will be stopped if you have not completed your presentation on time.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
References
1. The Theory-Practice Gap in Capital Budgeting: Evidence from the United Kingdom by Glen C. Arnold and Panos D. Hatzopoulos.
2. Capital budgeting: A case study analysis of the role of formal evaluation techniques in the decision making process by E Gilbert.
3. Uncertainty, irreversibility and the use of ‘rules of thumb' in capital budgeting by Francis Chittenden and Mohsen Derregia.
Attachment:- Assignment-Brief.rar