Business Finance

HC2091 Group Assignment T1 2022

HOLMES INSTITUTE
FACULTY OF
HIGHER
EDUCATION

 

Assessment Details and Submission Guidelines
Trimester T1 2022
Unit Code HC2091
Unit Title Business Finance
Assessment Type Group Assignment
Assessment Title Capital Budgeting and Project Evaluation
Purpose of the
assessment
(with ULO
Mapping)
Students are required to form a group of 4 members to study, undertake
research, analyse and conduct academic work within the areas of business
finance covered in learning materials Topics 1 to 10 inclusive. Penalty will be
applied to solo groups.
The assignment examines the main issues, including: underlying theories,
implement performance measures used and explain the firm’s financial
performance. Your group is strongly advised to reference professional websites,
journal articles and text books in this assignment (case study). All five
Unit
learning Outcomes
(ULO 1, 2, 3, 4 and 5) are applicable.
Weight 25% of the total assessments
Total Marks 25 Marks
Word limit Maximum 2,500±200
Due Date: Registration of groups: 5 pm Friday, Week 5.
Final Submission of Group Assignment: Midnight (23:59 pm.) Sunday, Week 10
Late submission incurs penalties of 5 (five) % of the assessment value per
calendar day unless
an extension and/or special consideration has been
granted by the lecturer
prior to the assessment deadline.
Submission
Guidelines
All work must be submitted on Blackboard by the due date along with a
completed assignment cover page. Make sure that your group member’s
name and surname, student ID, unit name, and code and lecture’s name
are written on the cover sheet of the submitted assignment. A table of

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HC2091 Group Assignment T1 2022

contribution by group members into group work is also to be provided in
the cover page (please see the assignment cover page attached).
The assignment must be in MS Word format, no spacing, 12-pt Arial font
and 2 cm margins on all four sides of your page with appropriate section
headings and page numbers.
Reference sources must be cited in the text of the report, and listed
appropriately at the end in a reference list using Adapted Harvard
referencing style. Please see the guidelines at page 5. Penalty will be applied
to incorrect referencing.
Submitted work should be your original work showing your genuine
studying. Evidence of your original work (allocation of tasks, discussion, file
exchanges, drafts, etc.) need to be presented in the records of your group
work in Discussion Board or Group Blogs, available in Group Tools in your
Group for Group Assignment. Your assignment
will not be marked without
the evidence of your group work.
Students need to read and understand the Holmes Academic Integrity
Policy
before they start any assessment to ensure that your assignment is
misconduct free. (Please refer section 4.3 Guide to Academic Integrity p 27
of the Holmes Student Handbook and read
Six Categories of Academic
Integrity Breaches
at the end of assignment carefully).
Three (3) attempts of submission are allowed for checking similarity and
final submission. Only final submission is marked. As a guide similarity score
of over 50% is considered as excessive plagiarism except in the cases where
the similarity is caused by the use of template provided by the lecturers,
specific types of assignment, references or sources of data. Please note that
it takes 48 hours for the self-check report to be available for your viewing.
Please also note that working at same case study project evaluation
assignment like this one may yield higher than 50% similarity. Therefore, do
not panic and send emails to your lecturers and Unit Coordinator about high
similarity after your submission if your work is genuine. Markers and Unit
Coordinator will look at details of the similarity report and ensure a proper
marking without any bias on that threshold 50%.
When you submit your assignment electronically, please save the file as
‘Group Assignment- your group name.doc’. You are required to submit the
assignment at Blackboard/Assessments/Group Assignment
Information/Group Assignment and Submission Link. Always keep an
electronic copy of your original file until you have received the final grade
for the Unit. Please make sure that you submit the correct file in the correct
format that is readable in Black Board.
Any appeal relating to submitting
wrong files and wrong format after the deadline will not be considered.

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HC2091 Group Assignment T1 2022

Group Self
enrolment
Please refer to the Group self-enrolment guidelines, as saved in the
Assessments folder in order to enrol into a group.
You should not enrol into any group without the consent of the other
members. To avoid random students joining your group, you should first
decide who the four (4) members are in your group and enrol at the
same time.
Any request for leaving a group or changing groups need to be emailed
to BB Help Desk for processing.

ASSIGNMENT SPECIFICATIONS
ASSIGNMENT TASK
This assignment task is a capital budgeting and project evaluation task with two parts:
Part 1: Capital Budgeting Decision Making
Part 2: Risk Analysis and Project Evaluation
ASSIGNMENT COVERPAGE
Please use the provided template
Specific Information for HC2091 Group Assignment T1 2022 Marking:
(Please fill in this table and put it right before Introduction part in your assignment. It is important
for marking, penalty is applied for missing information)

Student name and ID Campus and Interactive
Tutorial Group Number
Which section(s) did each
person work on
Contribution (%)

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HC2091 Group Assignment T1 2022
INTRODUCTION
The introduction should briefly explain the purpose of the assignment (not more than 200 words)
PART 1. CAPITAL BUDGETING DECISION MAKING (10 marks)
Case Study 1:
Your group is working as the Finance Team of New Age Toys Ltd. Your Team was
required by the company’s management to prepare and evaluation on a new investment that aims
to boost revenue by at least 15%. New Age Ltd.’s Management Board would like to convince the
oncoming shareholders meeting on the outcome of this project. The board required your team to
choose a method of capital budgeting that enables the board to tell shareholders about the potential
share value increase generated by the new project. The table below shows the estimated data
available of two alternative options for your company’s choice of capital budgeting.

Option 1 Option 2
Initial Investment $500,000 Initial Investment 655,000
Cash Flow in Cash flow in
Year 1 200,000 Year 1 250,000
Year 2 200,000 Year 2 250,000
Year 3 200,000 Year 3 250,000
Year 4 200,000 Year 4 250,000

Your team is required to write a short report to the company’s Management:
1) To select a relevant method of project evaluation among five investment criteria of Net Present
Value (NPV), Average Accounting Return (AAR), profitability Index (PI), Internal Rate of Return (IRR),
Simple Payback Period, and Discounted Payback Period for each alternative option, given the market
required rate of return for all projects of this type is xxx% and the company’s benchmark of payback
is maximum 3 years. Your recommendation must include your justification on why you choose the
specific method based on its pros and cons compared to other methods and the financial condition
of the company.
(4 marks)
2) To perform the selected method and present the outcome of your project evaluation and
recommend the option 1 or option 2 should the company choose for the project. Your justification
must include calculation steps and numerical outcomes.
(6 marks)
PART 2. RISK ANALYSIS AND PROJECT EVALUATION (13 marks)
Case Study 2
: Your company has another project to launch a new toy product that is expected to sell
for an average price of $50 per item. Launching this project will require the company to buy an
equipment with the cost of $450,000 and residual value of $50,000 after five year. The company
expects it can sell 200,000 unit per year at this price for a period of 5 years with this equipment. An
additional working capital requirement for producing this product is $50,000, which is expected to
be retrieved at the end of the project. Other information is available below:

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HC2091 Group Assignment T1 2022
Variable cost per unit of $20
Cash fixed costs per year is $30,000
Depreciation method: straight line
Discount rate: xxx%
Tax Rate: 30%
Your financial department conducted some economics forecast and estimated that in the coming
time, there may not be any significant changes in variable cost per unit and total fixed costs per year
in production. However, sales may be subject to an unexpected outcome due to the rivalry of your
company’s competitor. This competitor is also developing their new toy with similar features. If the
competitor successfully launches their new toy and occupies the best potential market before you,
the worst-case scenario will occur to your company product, where both unit sales and price per
unit decrease by 15%. If your company successfully launches your new product and occupy the best
potential market before your competitor, then your company can enjoy a 15% increase in both unit
sales and price per unit.
Perform a scenario analysis with cash flows of the project to determine the sensitivity of the project
NPV with the following changes in the value drivers in the worst-case scenario and best- case
scenario.
Worst case scenario:
Unit sales decrease by 15%
Price per unit decreases by 15%
Best case scenario:
Unit sales increase by 15%
Price per unit increases by 15%
Provide your results in (a) relevant tables. A conclusion on the risks of the project cash flows need to
be drawn out.
CONCLUSION
Based on the outcome of two parts, provide brief conclusion, summarizing what you have done in
the assignment (not more than 200 words).
Assignment Preparation guideline/ Important Note: Students are required to attend Interactive
Tutorial Sessions which covers Topics 4. NPV and Other Investment Criteria and Topic 5. Making
Capital Investment Decisions (conducted in Week 5 and Week 6) for inputs and data to answer the
questions in Part 1 and 2, and training on how to work with correct capital budgeting technique,
proper format, structure, calculation tables and terminologies.
Assignments with different
templates, terminologies and calculations from the solution templates and guidance provided to
you in the sessions will be investigated as potential contract cheater done assignments
.
Different discount rates will be assigned to different groups of students for this Part 1 and Part 2
HC2091 Group Assignment. Students need to attend Tutorial Class in Week 9 to get the information
and perform the tasks.

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HC2091 Group Assignment T1 2022
Guidelines – Adapted Harvard Referencing:
1. Reference sources in assignments are limited to sources which provide full text access to the
source’s content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the assignment and titled:
References.
3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author
surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For
example; P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal of
Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
4. All assignments will require additional in-text reference details which will consist of the surname
of the author/authors or name of the authoring body, year of publication, page number of contents,
paragraph where the content can be found. For example; “The company decided to implement an
enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”
Non-Adherence to Referencing Guidelines:
Where students do not follow the above guidelines:
1. Students who submit assignments which do not comply with the guidelines will be asked to
resubmit their assignments.
2. Late penalties will apply, as per the Student Handbook each day, after the student/s have been
notified of the resubmission requirements.
3. Students who comply with guidelines but the citations are “fake” will be reported for academic
misconduct.
Academic Integrity
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity
is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all
assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six
categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues
related to your assessment tasks, please consult your lecturer or tutor for relevant referencing
guidelines and support resources. Many of these resources can also be found through the Study Sills
link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from
deduction of marks,
failure of the assessment task or unit involved, suspension of course enrolment,
or cancellation of course enrolment
.
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HC2091 Group Assignment T1 2022
Table 1: Six categories of Academic Integrity breaches

Plagiarism Reproducing the work of someone else without attribution. When a
student submits their own work on multiple occasions this is known as
self-plagiarism.
Collusion Working with one or more other individuals to complete an
assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with or
without their knowledge. If a student fails to take reasonable
precautions to prevent their own original work from being copied, this
may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present as
oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task, generally
in exchange for money or other manner of payment.
Data fabrication and
falsification
Manipulating or inventing data with the intent of supporting false
conclusions, including manipulating images.

Source: INQAAHE, 2020
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HC2091 Group Assignment T1 2022
Marking Criteria

Marking criteria Weighting
Part 1. Capital budgeting Decision Making
4%
6%
Part 2. Risk Analysis and Project Evaluation
NPV Scenario Analysis 13
Academic writing: Introduction, conclusion, presentation, structure and academic
writing
2%
Total weight of written report 25%

 

1.1. Select a relevant capital budgeting method for project evaluation
1.2.Perform the selected method and present the outcome of project evaluation
and recommendation

9
HC2091 Group Assignment T1 2022
Marking Rubric

Content Excellent Very Good Good Satisfactory Unsatisfactory
(80%-full marks
given)
(70-79% marks
given)
(61-69% marks
given)
(50-60% marks
given)
(0-49% marks
given)
1.1. To
select a
relevant
method
among five
investment
criteria
Correct selection
of investment
criterion with
outstanding
justification
based on pros
and cons of each
method and
financial
condition of the
company
Correct selection
of investment
criterion with
very good
justification
based on pros
and cons of each
method and
circumstance of
the company
Correct selection
of investment
criterion with
good justification
based on pros
and cons of each
method and
circumstance of
the company
Selection of an
investment
criterion with
some satisfactory
justification
based on pros
and cons of each
method and
circumstance of
the company
Incorrect
selection of
investment
criterion with no
or insufficient
justification
1.2. To
perform the
selected
method and
present the
outcome of
your project
evaluation
and
recommend
the option
company
choose for
the project.
Correct
recommendation
with outstanding
justification,
calculation and
outcome of
capital budgeting
technique
Correct
recommendation
with very good
justification,
calculation and
outcome of
capital budgeting
technique
Correct
recommendation
with good
justification,
calculation and
outcome of
capital budgeting
technique
Correct
recommendation
with sufficient
calculation and
outcome of
capital budgeting
technique
Incorrect
recommendation
with insufficient,
incorrect
calculation and
outcome of
capital budgeting
technique
2. NPV
Scenario
Analysis
Presenting a
correct and
well-presented
NPV scenario
analysis with
proper analysis
and
justification;
Analysis is taken
with exceptional
good
justification and
presentation of
data and
calculation.
Presenting a
correct and well
presented NPV
scenario analysis
with proper
analysis and
justification.
Presenting a
correct NPV
scenario analysis
with proper
analysis and
justification.
Presenting a
correct NPV
scenario analysis
with proper
analysis and
justification.
However, there
may be some
incorrect
calculation,
limited analysis
and explanation.
No or incorrect
NPV scenario
analysis.

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HC2091 Group Assignment T1 2022

Academic
writing
Demonstrated a
high level of
understanding
and skills of
academic writing
by means of
criticism, logical
argument, and
interpretation of
data and
information.
Demonstrated a
good
understanding
and skills of
academic writing
by means of
criticism, logical
argument, and
interpretation of
data and
information.
Followed given
formatting
guidelines.
Demonstrated a
reasonable
understanding
and skills of
academic writing
by means of
criticism, logical
argument, and
interpretation of
data and
information.
Partially followed
given formatting
guidelines
Demonstrated
limited skills of
academic writing
in terms of
structure,
presentation,
wordings and
referencing.
No satisfactory
attention on
given formatting
guidelines
Failing to meet
the requirements
of academic
writing in terms
of structure,
presentation,
wordings and
referencing.
No attention on
given formatting
guidelines