FINANCE-The applied project is a two-page single space memorandum plus appendices
Question # 00122934
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Updated on: 10/24/2015 12:22 AM Due on: 11/23/2015
The applied project is a two-page single space memorandum plus appendices that suggests a possible investment in an asset. The student is responsible to think of a possible capital budgeting project; collect relevant data; research relevant information regarding implementation of the project and perform the necessary analysis to determine if the project should be undertaken. It may be appropriate to keep the project simple so that it is tractable. It is also true that too simple of a project would not reflect well on your ability depth of financial analysis. Some examples of possible projects include – restaurants; retail stores; service firms; and basic manufacturing.**Note - It may be on anything. I would prefer that you do something that you have a real interest in if that is feasible and appropriate.
Students should at a minimum consider the following in the computational part of the case:
1) Initial cash flows, operating cash flows and terminal cash flow.2) Payback; IRR; NPV; NPV profile.3) Sensitivity analysis4) Be clear regarding how the project is to be finance and integrate inflation into your analysis.
This assignment should build on what you have learned in the courses associated with accounting, valuation, spread sheets and investment.
The memorandum should contain at least 4 sections:1) Contain an introduction2) Provide any necessary explanation and background to understand the project.3) Summarize the results that are included in the appendix. The writer should reference key computations including calculations 1-4 outlined above. 4) Provide some type of concluding comments.
It is expected that you turn in will be able to be accessed by me with Microsoft Word and/or Excel. Two page maximum (single-spaced) applies to the memorandum (the excel files can contain many pages). Neatness counts. Late papers will be penalized at least 30%.
The memo will be graded based on the following:1) Completeness and Accuracy of Attachments: ________ out of 25(Contain the required computations and financial analysis)2) Written content of the memorandum: _________out of 25 (logic of presentations; ability to effectively integrate computations into written memo)3) Grammar, spelling, punctuation andappearance (self explanatory) __________ out of 154) Financial Reasoning of the analysis __________ out of 35(correct use of finance concepts)
Example of Memorandum
To:
From:
Date:
Subject:
This memorandum is written to provide a format to assist in the preparation of your "memo." Cover memorandums, sometimes called executive summaries, are very common in business and are very similar to an email. Their purpose is to give busy managers a quick summary of an attached, usually lengthy, report or article. If the memorandum is properly written, a busy executive can read the memorandum and get a complete understanding of the important contents of an attached report or article. Memorandums usually consist of a few paragraphs, and for the most part are less than two pages long.
Memorandums are also used to communicate important information without an attached report or article. In fact, they are the principle means by which business executives in large companies communicate with each other internally. External communications, where executives are communicating with someone outside of their organization, is done with a letter format. This should make sense to you as it is obviously superfluous for executives within the same company to address correspondence to one another when the material will be sent to another office within the same building.
Hopefully, you now understand why I have asked you to write a report that uses the memorandum format. Although term papers and case analyses are important assignments, most of you will not be asked to write lengthy reports at your place of employment. More than likely, however, you will be asked to write a "memo."
Note: Much of this form was adapted from "Memorandums in the Classroom," by Joseph Newman and John M. Wachowitz, Journal of Financial Education, (Fall 1989). The memo is based on one prepared by Dr. Kathleen Farrell, University of Nebraska Lincoln.
Students should at a minimum consider the following in the computational part of the case:
1) Initial cash flows, operating cash flows and terminal cash flow.2) Payback; IRR; NPV; NPV profile.3) Sensitivity analysis4) Be clear regarding how the project is to be finance and integrate inflation into your analysis.
This assignment should build on what you have learned in the courses associated with accounting, valuation, spread sheets and investment.
The memorandum should contain at least 4 sections:1) Contain an introduction2) Provide any necessary explanation and background to understand the project.3) Summarize the results that are included in the appendix. The writer should reference key computations including calculations 1-4 outlined above. 4) Provide some type of concluding comments.
It is expected that you turn in will be able to be accessed by me with Microsoft Word and/or Excel. Two page maximum (single-spaced) applies to the memorandum (the excel files can contain many pages). Neatness counts. Late papers will be penalized at least 30%.
The memo will be graded based on the following:1) Completeness and Accuracy of Attachments: ________ out of 25(Contain the required computations and financial analysis)2) Written content of the memorandum: _________out of 25 (logic of presentations; ability to effectively integrate computations into written memo)3) Grammar, spelling, punctuation andappearance (self explanatory) __________ out of 154) Financial Reasoning of the analysis __________ out of 35(correct use of finance concepts)
Example of Memorandum
To:
From:
Date:
Subject:
This memorandum is written to provide a format to assist in the preparation of your "memo." Cover memorandums, sometimes called executive summaries, are very common in business and are very similar to an email. Their purpose is to give busy managers a quick summary of an attached, usually lengthy, report or article. If the memorandum is properly written, a busy executive can read the memorandum and get a complete understanding of the important contents of an attached report or article. Memorandums usually consist of a few paragraphs, and for the most part are less than two pages long.
Memorandums are also used to communicate important information without an attached report or article. In fact, they are the principle means by which business executives in large companies communicate with each other internally. External communications, where executives are communicating with someone outside of their organization, is done with a letter format. This should make sense to you as it is obviously superfluous for executives within the same company to address correspondence to one another when the material will be sent to another office within the same building.
Hopefully, you now understand why I have asked you to write a report that uses the memorandum format. Although term papers and case analyses are important assignments, most of you will not be asked to write lengthy reports at your place of employment. More than likely, however, you will be asked to write a "memo."
Note: Much of this form was adapted from "Memorandums in the Classroom," by Joseph Newman and John M. Wachowitz, Journal of Financial Education, (Fall 1989). The memo is based on one prepared by Dr. Kathleen Farrell, University of Nebraska Lincoln.
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Rating:
/5
Solution: FINANCE-The applied project is a two-page single space memorandum plus appendices