The case study is marked out of 100 and is in two parts: Part A and Part B. Both Part A and Part B have 50 marks attached to them.
Part A has the following questions:
- Q1: Prepare a cash budget for the business (20 marks)
- Q2: Break-even analysis of the proposed situation (15 marks)
- Q3: Using your analysis from questions 1 and 2, evaluate the financial feasibility of the business 400 – 500 words.(15 marks)
Part B has the following questions:
- Q1: Determine the weighted average cost of capital for a business (7 marks)
- Q2: Use NPV analysis to assess a capital investment decision (18 marks)
- Q3: Provide written advice to the business regarding the capital investment decision 200 – 250 words (7 marks)
- Q4: Provide a written explanation regarding two aspects of applying NPV analysis, each part 250 – 300 words (2 x 9 marks = 18 marks)
Please note that questions Part A Q3 and Part B Q3 and Q4 require a written response. You need to reference this written work using the RMIT-Harvard method.