6/18/2021
, BA4008QA – Business Decision Making: Coursework 2 (Individual
Coursework)
Contents
TASK ONE (70 marks).................................................................................................................................4
QUESTION 1(a) :..........................................................................................................................................4
QUESTION 1(b) :.........................................................................................................................................5
QUESTION 1(c) :..........................................................................................................................................5
[15 MARKS].................................................................................................................................................5
TASK TWO (30 marks)................................................................................................................................6
QUESTION 2(a):...........................................................................................................................................6
[15 MARKS].................................................................................................................................................6
[10 MARKS].................................................................................................................................................6
[5 MARKS]...................................................................................................................................................6
Information on TESCO Plc........................................................................................................................7
SOURCES AND HYPERLINKS..............................................................................................................8
FAME financial database..............................................................................................................................8
BBC website: 2 March 2018 SFO seeks retrial of former Tesco bosses........................................................8
ASSESSMENT CRITERIA:.........................................................................................................................9
Total Marks for Task 1 = 70 Task 2 :............................................................................................................9
Total Marks (Task 2) = 30.............................................................................................................................9
Overall Marks (Task 1 & Task 2) = 100 Harvard referencing format must be used Grading Criteria:..........9
2
,BA4008QA – Business Decision Making: Coursework 2 (Individual
Coursework)
Module Business Decision Making
Code BA4008QA
Coursework Number 2
Intake July 20
Available on Mon 25th January 2021
WeLearn
Submission Date and Mon 22nd February 2021 before
Time 3pm via Turnitin
This second coursework should be submitted in a
single Word Document.
Note: No Pdf, No excel
This Coursework contributes 30% to the overall marks
for BA4008QA
Answer All questions
3
, BA4008QA – Business Decision Making: Coursework 2 (Individual
Coursework)
TASK ONE (70 marks)
Senior management at Wonderland Plc have identified that there is a strategic need for a
replacement machine to be acquired in one of its production departments. They have to make
a choice between two models of the machine they have in mind. Model 1 is called Duke and
model 2 is called Earl. They are unsure as to which of the two models they should buy. They
have given you the following profiles of the two models.
Duke Earl
Cost £250,000 £400,000
Cash Inflow £ £
Year1 120,000 60,000
2 50,000 100,000
3 50,000 125,000
4 25,000 50,000
5 60,000 50,000
6 50,000 120,000
Scrap Value 10,000 40,000
8%
Cost of Capital
QUESTION 1(a) :
They want you to appraise the two prospective projects using the following investment
appraisal techniques: [32 MARKS]
(i) Payback (4 marks)
(ii) Accounting rate of Return (4 marks)
(iii) Net Present Value (16 marks)
(iv) Internal Rate of Return (10 marks)
Note: Funds are only available for only one model.
4
, BA4008QA – Business Decision Making: Coursework 2 (Individual
Coursework)
Contents
TASK ONE (70 marks).................................................................................................................................4
QUESTION 1(a) :..........................................................................................................................................4
QUESTION 1(b) :.........................................................................................................................................5
QUESTION 1(c) :..........................................................................................................................................5
[15 MARKS].................................................................................................................................................5
TASK TWO (30 marks)................................................................................................................................6
QUESTION 2(a):...........................................................................................................................................6
[15 MARKS].................................................................................................................................................6
[10 MARKS].................................................................................................................................................6
[5 MARKS]...................................................................................................................................................6
Information on TESCO Plc........................................................................................................................7
SOURCES AND HYPERLINKS..............................................................................................................8
FAME financial database..............................................................................................................................8
BBC website: 2 March 2018 SFO seeks retrial of former Tesco bosses........................................................8
ASSESSMENT CRITERIA:.........................................................................................................................9
Total Marks for Task 1 = 70 Task 2 :............................................................................................................9
Total Marks (Task 2) = 30.............................................................................................................................9
Overall Marks (Task 1 & Task 2) = 100 Harvard referencing format must be used Grading Criteria:..........9
2
,BA4008QA – Business Decision Making: Coursework 2 (Individual
Coursework)
Module Business Decision Making
Code BA4008QA
Coursework Number 2
Intake July 20
Available on Mon 25th January 2021
WeLearn
Submission Date and Mon 22nd February 2021 before
Time 3pm via Turnitin
This second coursework should be submitted in a
single Word Document.
Note: No Pdf, No excel
This Coursework contributes 30% to the overall marks
for BA4008QA
Answer All questions
3
, BA4008QA – Business Decision Making: Coursework 2 (Individual
Coursework)
TASK ONE (70 marks)
Senior management at Wonderland Plc have identified that there is a strategic need for a
replacement machine to be acquired in one of its production departments. They have to make
a choice between two models of the machine they have in mind. Model 1 is called Duke and
model 2 is called Earl. They are unsure as to which of the two models they should buy. They
have given you the following profiles of the two models.
Duke Earl
Cost £250,000 £400,000
Cash Inflow £ £
Year1 120,000 60,000
2 50,000 100,000
3 50,000 125,000
4 25,000 50,000
5 60,000 50,000
6 50,000 120,000
Scrap Value 10,000 40,000
8%
Cost of Capital
QUESTION 1(a) :
They want you to appraise the two prospective projects using the following investment
appraisal techniques: [32 MARKS]
(i) Payback (4 marks)
(ii) Accounting rate of Return (4 marks)
(iii) Net Present Value (16 marks)
(iv) Internal Rate of Return (10 marks)
Note: Funds are only available for only one model.
4
