Part three of the assessment consists of producing a Net Present Value (NPV) investment appraisal of your project. You will need to establish estimate cash flows, estimate the outlay/investment required, and use your cost of capital calculated within part two of the assessment to discount the cash flows. You should ensure that your NPV fully reflects the international complexities associated with your proposed project, particularly any tax and transfer pricing implications, and that your evaluation explains clearly decisions regarding the exchange rates used.
Your submission for part three of the assessment should therefore include:
• A discounted NPV which clearly shows the cash flows estimated and how the international complexities have been incorporated
• An explanation of how the cash flows have been established and any assumptions made
• An evaluation of how the international complexities have been incorporated within the NPV
Total word limit (excluding calculations) = 1,500 words.
Part 3 of the FN380 assessment accounts for 35% of the overall mark. Students will be given an overall mark out of 100.
The third part of the FN380 assignment will be marked according to the following criteria:
Marking Criteria:
Marks will be based upon how well students have achieved the following criteria:
• A discounted NPV that clearly shows the cash flows estimated and how the international complexities have been incorporated: Is the approach taken appropriate? Have the international complexities been identified? Have the international complexities been incorporated? (45 marks)
• An explanation of how the cash flows have been established and any assumptions made: Are the assumptions logical and appropriate? Are the assumptions explained clearly? How well informed are the cash flows? Is the data and information used appropriate? Have all elements of the NPV been explained? (25 marks)
• An evaluation of how the international complexities have been incorporated within the NPV: Is the evaluation clear? Does the evaluation explain how the international complexities have been incorporated within the NPV? Have international complexities been identified and incorporated appropriately?
(20 marks)
• Effective presentation; location and use of sources; evaluation of data and information: Is the work presented clearly and effectively? Is the NPV clearly presented with appropriate supporting detail? Is the discussion clear? Ability to locate analyse and evaluate data from multiple sources, including acknowledgements and Harvard referencing of sources (10 marks
