Length: 2500 words equivalent (9-10 minutes/16 slides maximum)
NB: You spend equivalent time preparing for this task as you would for a 2500 word assessment.
Due date: End of Week 6 (11.59pm Sunday)
This assessment supports unit learning outcomes 1, 2, 3 and 4.
ABC Pty Ltd (Assignment 1) has identified a potential project that the firm could undertake, but needs your recommendation before it makes a decision. You have already obtained and incorporated relevant financial information from the client in the company’s standard Excel document. The document also includes “Cost of Capital” and “Capital Budgeting” tabs to assist you to present the summary of your financial analysis in an Excel spreadsheet.
You have been hired to complete “Cost of Capital” and “Capital Budgeting” tabs in the provided Excel spreadsheet (10%), then conduct an analysis and put forth a recommendation in a narrated PowerPoint presentation that can be presented to the executive management of ABC Pty Ltd. The calculations, result tables, illustrative charts (if any), and references are included as equivalents in the word count.
The narrated PowerPoint presentation must integrate the results of working calculations from the Excel spreadsheet. The narrated presentation must:
Provide an introduction - A brief statement of the business problem and your assumptions. (1-2 slides)
Discuss the relevance of the WACC calculation in capital budgeting process. (1-2 slides)
Estimate ABC Pty Ltd’s cost of debt, cost of equity and WACC based on the sources of capital indicated in ABC’s financial statements and briefly explain the calculation methods for each source of ABC Pty Ltd’s capital and WACC. (2-4 slides)
Estimate initial, operating, and terminal cashflows for the project and include a brief explanation of the process (2-3 slides)
Apply and compare three different capital budgeting methods (discounted payback, ROI and NPV) including an explanation of each method to assess the investment proposition. (2-3 slides)
Discuss the relevance of NPV method in capital budgeting decision making process and make an investment recommendation to accept or reject the project. (1-2 slides)
ABC Pty Ltd’s Excel File:
Use the following Excel spreadsheet BAO5734 Assessment 3 Capital Budgeting Excel Document to prepare your presentation.
Use the Excel spreadsheet to provide the WACC and Capital Budgeting calculations. Refer to the Instructions tab to complete the Cost of Capital and Capital Budgeting tabs.
To submit this assessment:
Create a Word document for submission in Turnitin. This document should contain the following information:
the URL or link to your presentation (including password to link if applicable). Please note, that you will not be able to submit your presentation as it will most likely exceed the file size allowance for assessments.
your complete presentation script (everything that you say during your recorded presentation).
The following guides have been collated to walk you through obtaining your link:
Prezi: Sharing a presentation's view link (Prezi 2019)
Zoom: You will need to ensure that you have your Zoom recording set to Cloud storage (so that it stores it online rather than on your computer). Cloud recording (Zoom 2019) walks you through how to set your recording to be Cloud storage as well as obtaining your link for sharing.
Narrated PowerPoint: Once you have narrated your PowerPoint, it should automatically have the audio saved in it. You can upload your narrated PowerPoint as is.
Harvard referencing: Home (Victoria University Library 2019)
Visit Record audio for your PowerPoint presentation (Microsoft 2019) for a Mac guide.
Visit Record a slide show with narration and slide timings (Microsoft 2019) for a Windows guide.
Prezi for education (Prezi 2019)
Creating a new presentation (Prezi 2019).
Getting started on Windows and Mac (Zoom 2019).