Finance Assignment
Budget: ₹1,500 – ₹12,500 INR
Choose a public limited company listed either on NSE or BSE. Assume you are the project manager of this company. This company is considering to invest in ONE project/business for a period of 5 years and move on to other projects afterwards. The investment can be of any type (purchase of equipment, vehicles, property, another business/store etc., new or old). You are required to undertake following analysis.
1. Description of the investment and cash flow analysis: Describe the investment of your choice and present an annual cash flow statement (for this project only) with all the estimated cash flows (initial cost of investment and annual cash flows) for the next 5 years. Present your calculations and discuss the findings.
2. WACC analysis: Refer the capital structure of your selected company and calculate the weighted average cost of capital (WACC). Present your calculations and discuss the findings.
3. Capital budgeting analysis: Use at least 2 investment appraisals methods to evaluate your project. Use the WACC as discount rate. Present your calculations and discuss the findings.
4. Risk analysis: Name and discuss at least 2 risks associated with this specific investment and your strategy towards these risks.
1. Description of the investment and cash flow analysis: Describe the investment of your choice and present an annual cash flow statement (for this project only) with all the estimated cash flows (initial cost of investment and annual cash flows) for the next 5 years. Present your calculations and discuss the findings.
2. WACC analysis: Refer the capital structure of your selected company and calculate the weighted average cost of capital (WACC). Present your calculations and discuss the findings.
3. Capital budgeting analysis: Use at least 2 investment appraisals methods to evaluate your project. Use the WACC as discount rate. Present your calculations and discuss the findings.
4. Risk analysis: Name and discuss at least 2 risks associated with this specific investment and your strategy towards these risks.