Prepare a clear definition of the objectives of the project

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Reference no: EM132207338

Assessment - Project Evaluation Assignment

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:

1. Prepare a clear definition of the objectives of the project and, where practical, this should be related to the current strategies of the organisation.

2. 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.

3. A formulation of the detailed costs and benefits of the options.

4. Calculate the cost of capital (debt / equity).

5. Evaluate each option using DCF techniques (use a minimum period of 5 years and justify the discount rate used).

6. Evaluation of the risks of the project.

7. Recommendation of the most economic option and discussion of any non-financial factors relevant to your decision.

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.

Reference no: EM132207338

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