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.
The module programme for FN380 provides details of all the taught sessions and of scheduled project supervision – you are reminded that I am available for consultation during the weeks where there is no taught element, and that I expect you to make full use of these sessions.