Assessment 3: Project Evaluation Assignment Assessment 3: Project Evaluation Assignment Submission..
Assessment 3: Project Evaluation Assignment
Assessment 3: Project Evaluation Assignment
Submission Details: Above through TURNITIN link in PDF
Task: You are required to submit a project report that describes and evaluates three project alternatives, using the project evaluation techniques discussed in this course. The project alternatives may be hypothetical. Assume you are writing a proposal to your Board of Directors.
Your analysis should include brief estimates of projected revenues and costs of productions and use Discounted Cash Flow analysis, using a justified discount rate to give Net Present Values of 3 alternatives of a capital investment project as well as determine the Internal Rate of Return. Description of the project alternatives should be less than 1 page.
The layout and content should include:
Prepare a clear definition of the objectives of the project and, where practical, this should be related to the current strategies of the organisation.
The formulation of options to achieve the objectives (e.g. set up a manufacturing plant at locations in countries A, B, or C). Three investment alternatives should be compared.
A formulation of the detailed costs and benefits of the options.
Calculate the cost of capital (debt / equity).
Evaluate each option using DCF techniques (use a minimum period of 5 years and justify the discount rate used).
Evaluation of the risks of the project.
Recommendation of the most economic option and discussion of any non-financial factors relevant to your decision.
The assignment report should be brief and to the point.
Suggested format for your report.
To ensure adequate coverage of the topic the following format is suggested for your report:
Executive summary
Table of contents
Introduction (not more than one page for introducing the project)
Discussion of options
Cost of capital assumptions and calculations (debt/equity costs)
Description of the costs and benefits of the project
Evaluation of the project – e.g. DCF calculations to give NPV and IRR
Evaluation of the risks of the project
Recommendations
Bibliography
Length and Presentation:
2000 words. Please include a word count on the front page of your assignment.
Criteria by which your assignment will be marked:
FEATURE
WEIGHTING
Description of project
10%
Cost and benefits analysis
10%
Basis for selecting the cost of capital
5%
Evaluation of project with DCF methods
20%
Evaluation of risks
20%
Recommendations
15%
Readability, bibliography, and referencing
10%
Presentation of report: Executive Summary, Tables, etc.
10%
Total
100%
