BUS 5111 Financial Management Unit 3 Written Assignment (WA)
Assignment Guide
BUS5111 Unit 3 Written Assignment
Question
Submit a 3-4 page written paper following the APA format, exclusive of the title and reference
pages. The Abstract is not required or needed. Papers should be double spaced in Times New
Roman font and 12 point size. The paper must cite at least one other validated (peer-reviewed)
source independent of the textbook.
In this paper, please discuss the following case study. For you to complete this assignment you
must:
Explain your approach to the problem.
Support your approach with references, and execute your approach.
Provide an answer to the case study’s questions with a recommendation.
This case continues following the new project of the WePROMOTE Company, that you and your
partner own. WePROMOTE is in the promotional materials business. The project being
considered is to manufacture a very unique case for smartphones. The case is very durable,
attractive and fits virtually all models of smartphone. It will also have the logo of your client, a
prominent, local company and is planned to be given away at public relations events by your
client.
As we know from the prior case involving this company, more details of the project become
apparent and with more precision and certainty.
The following are the final values to the data:
The cost of the equipment will be $70,000 and this cost is incurred prior to any cash is
received by the project.
The expected annual cash revenue of the project will be $30,000.
The expected annual cash outflows (expenses/costs) are estimated at being $11,000,
excluding depreciation.
Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for
the life of the equipment. The discount rate you are assuming is 6%.
After 5 years the equipment will stop working and there will be no salvage value.
Requirements of the paper:
Perform the final NPV calculations and provide a narrative on how you calculated the
computations and why (justification of answer).
Page 1 of 5
, BUS 5111 Financial Management Unit 3 Written Assignment (WA)
Present your calculated answers in schedule format (a table) along with your narrative.
Microsoft Excel is also recommended for calculating and creating a table (your schedule).
Then provide a summary conclusion on whether you should continue to pursue this
business opportunity.
Research, using at least one other sources other than the textbook materials that support
your calculations and conclusions.
Papers will be assessed on the following criteria:
Provide the final, accurate NPV calculations.
A narrative on how the NPVs were calculated. The narrative should include how the data
relating to depreciation and its tax consequences affect the cash flow of the project. Include
a table with your analysis to present your work.
Provide a conclusion on whether this business opportunity should be pursued.
Basic Concepts to Master
This assignment requires you to demonstrate your understanding of:
Net present value (NPV) for a project involving expected future cash flows.
After-tax cash flow analysis.
Suggested Answer Guide
The paper should contain at least the following sections.
Title Page
o To comply with APA style, papers should have a title page.
You may follow this format for student papers:
Page 1
BUS 5111 Unit 3 Written Assignment
Net Present Value Analysis
Page 2 of 5
Assignment Guide
BUS5111 Unit 3 Written Assignment
Question
Submit a 3-4 page written paper following the APA format, exclusive of the title and reference
pages. The Abstract is not required or needed. Papers should be double spaced in Times New
Roman font and 12 point size. The paper must cite at least one other validated (peer-reviewed)
source independent of the textbook.
In this paper, please discuss the following case study. For you to complete this assignment you
must:
Explain your approach to the problem.
Support your approach with references, and execute your approach.
Provide an answer to the case study’s questions with a recommendation.
This case continues following the new project of the WePROMOTE Company, that you and your
partner own. WePROMOTE is in the promotional materials business. The project being
considered is to manufacture a very unique case for smartphones. The case is very durable,
attractive and fits virtually all models of smartphone. It will also have the logo of your client, a
prominent, local company and is planned to be given away at public relations events by your
client.
As we know from the prior case involving this company, more details of the project become
apparent and with more precision and certainty.
The following are the final values to the data:
The cost of the equipment will be $70,000 and this cost is incurred prior to any cash is
received by the project.
The expected annual cash revenue of the project will be $30,000.
The expected annual cash outflows (expenses/costs) are estimated at being $11,000,
excluding depreciation.
Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for
the life of the equipment. The discount rate you are assuming is 6%.
After 5 years the equipment will stop working and there will be no salvage value.
Requirements of the paper:
Perform the final NPV calculations and provide a narrative on how you calculated the
computations and why (justification of answer).
Page 1 of 5
, BUS 5111 Financial Management Unit 3 Written Assignment (WA)
Present your calculated answers in schedule format (a table) along with your narrative.
Microsoft Excel is also recommended for calculating and creating a table (your schedule).
Then provide a summary conclusion on whether you should continue to pursue this
business opportunity.
Research, using at least one other sources other than the textbook materials that support
your calculations and conclusions.
Papers will be assessed on the following criteria:
Provide the final, accurate NPV calculations.
A narrative on how the NPVs were calculated. The narrative should include how the data
relating to depreciation and its tax consequences affect the cash flow of the project. Include
a table with your analysis to present your work.
Provide a conclusion on whether this business opportunity should be pursued.
Basic Concepts to Master
This assignment requires you to demonstrate your understanding of:
Net present value (NPV) for a project involving expected future cash flows.
After-tax cash flow analysis.
Suggested Answer Guide
The paper should contain at least the following sections.
Title Page
o To comply with APA style, papers should have a title page.
You may follow this format for student papers:
Page 1
BUS 5111 Unit 3 Written Assignment
Net Present Value Analysis
Page 2 of 5
