Important information
• The word count for this assignment is 3500 to 4000 words. You must state on the front of your assignment the number of words used.
• The main text for this assignment must be word-processed in Arial/Times New Roman font, size 12, double spacing, and minimum 1.5 cm margins all around.
• The word count includes the main text, including in-text reference citations and quotations.
• The word count does not include appendices, title page, table of contents, abstract or executive summary, tables, figures, legends, reference lists, acknowledgements, and appendix.
Assignment:
Investment Appraisal Report
This investment appraisal report coursework offers MBA students multifaceted advantages, along with a dynamic opportunity to apply theoretical knowledge to real-world business scenarios. It builds practical skills in financial analysis, strategic thinking, and decision making by encouraging students to evaluate investment opportunities using methods such as Net Present Value (NPV), Internal Rate of Return (IRR), Return on Invested Capital (ROIC), and related sensitivity and scenario analysis. Through this process, students learn to assess business risk and optimise returns effectively.
Students also strengthen their technical skills by creating Excel-based financial models and sharpen their communication skills through structured, persuasive report writing. They learn to translate complex financial data into clear insights tailored to decision-makers. This coursework prepares them for careers in finance, consulting, strategic planning, and entrepreneurship by equipping them with the tools to analyse investment opportunities critically and deliver sound strategic advice.
Thus, for this coursework, you are required to choose a publicly traded, non-financial company (from any country of your choice) and assess its future investment plan for launching a new product or service (of your choice). Start by defining the report’s purpose and objectives. Make sure you understand the needs and expectations of your target audience—whether clients or senior executives—and tailor your analysis to address those priorities.
These are the specific sections you MUST address in your report in the exact order:
3
Title Page >> Executive Summary >> Acknowledgements >> Table of Contents >> List of Figures >> List of Tables >> List of Appendices >> Glossary >> 1. Company Overview and Governance Structure >> 2. Project Rationale and Description >> 3. Financial Estimates and Projections >> 4. Project Financing >> 5. Cost of Capital and Project Hurdle Rate >> 6. Investment Evaluation (using ROIC, NPV, IRR and Payback methods) >> 7. Project Risk, Sensitivity and Scenario Analysis >> 8. Conclusion and Recommendation >> 9. Bibliography >> 10. Data Sources >> Appendices. You are allowed to add subsections as you see fit.
Consider the following suggestions relevant for this project:
1. Gather relevant financial data from credible sources, such as the company’s financial statements, market data, and industry reports. Ensure you use only publicly available information and avoid using confidential or private data. Use a minimum of the past 5 years (maximum 7 years) of relevant accounting (income statement, balance sheet and cash flow statement) and/or market information (stock price, market value, etc.). Do not report the whole financial statements and meaningless ratios. You may use industry and macroeconomic data as well to make comparisons. Besides the company’s website and commercial databases, you may get relevant financial information from https://www.msn.com/en-us/money, https://www.morningstar.com/, https://uk.finance.yahoo.com/ etc.
2. Ensure that all chapters, sections, and subsections of your report are properly numbered, following the format commonly used in academic textbooks.
3. This coursework is not about ratio analysis or financial statement analysis. Refrain from excessive reporting and analysis of meaningless financial ratios.
4. In the “Project Rationale and Description” section, write about why the proposed project is a good strategic fit for the company to create value.
5. The section on “Financial Estimates and Projections” should involve a detailed description and forecasting of the project’s expected financial performance, including initial and subsequent capital expenditures, operating expenses, revenue forecasts, earnings forecasts, expected tax payments and cash flow projections.
6. In the “Project Financing” section, you’re required to analyse the capital structure and payout policy of your firm to determine the best financing method for your proposed project.
7. The section on “Cost of Capital and Project Hurdle Rate” should discuss and estimate the firm’s current cost of capital and justify your chosen hurdle rate for the project, including its estimation, based on the selected financing method.
8. Submit a PDF file to avoid any distortion in formatting.
9. Use an appropriate referencing style, such as Harvard, and ensure that your references are consistent throughout the report. Consider using software like Mendeley to manage your references effectively.
10.Ensure that your report is written in clear and concise English, free of grammar mistakes, and in sentences that make clear sense. Consider using tools like Grammarly to improve the readability of your report. Please do not use any AI-generated texts.
11.Ensure that your images and graphs are in high resolution. By default, applications such as MS Word and Acrobat PDF Reader tend to reduce image quality, resulting in a blurry
4
appearance. It may be necessary to modify the default settings to maintain image clarity. Conducting a quick Google search can provide valuable assistance in this regard.
12.Use about 20 to 30 high-quality resources and references, including academic articles, print/electronic media, government reports, and business reports. Ensure that your sources are credible and relevant to your analysis.
13.Avoid using past essays or reports, as this may result in plagiarism.
14.Consider including any relevant additional materials in the appendix section. Remember that the appendix is not included in the word count.
15.Don’t write about the theories. I want to see their application in your report. 16. Past samples are not available.