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Pages:
10 pages/≈2750 words
Sources:
1 Source
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.K.)
Document:
MS Word
Date:
Total cost:
$ 46.8
Topic:

DAL Plc. Investment Appraisal

Case Study Instructions:

Assessment Information – What you need to do
This assignment is an individual assignment. The assessment will take place in week 15. The assessment will include materials covered in weeks 1-8.
This assignment requires you to analyse a case study. It includes deploying various investment techniques to analyse the viability of an investment and ad management on the most appropriate cause of action.
You have a 24-hour window in which to complete and submit your work
Criteria for Assessment - How you will be marked
A rubric/criterion by which the work will be assessed in your module handbook. This assignment is designed to assess the following learning outcomes: 
1. Evaluate the various models and techniques used in corporate investment decisions
Assessment DetailsThe word count is maximum of 1,500. 
There will be a penalty of a deduction of 10% of the mark for work exceeding the word limit by 10% or more. 
The word limit includes tables, figures, quotations and citations, but excludes the references list and appendices. 
NO SCREEN SHOTS, PHOTOS OR HAND-WRITTEN WORK WILL BE ACCEPTED
How to Submit your Assessment
Your coursework will be given a zero mark if you do not submit a copy through Turnitin. Please take care to ensure that you have fully submitted your work. • Please ensure that you have submitted your work using the correct file format, unreadable files will receive a mark of zero. The Faculty accepts Microsoft Office and PDF documents, unless otherwise advised by the module leader.• All work submitted after the submission deadline without a valid and approved reason will be subject to the University regulations on late submissions.o If work submitted as a reassessment of a previously failed assessment task is submitted later than the deadline the work will immediately be given a mark of zero per cent• The University wants you to do your best. However, we know that sometimes events happen which mean that you can’t submit your coursework by the deadline – these events should be beyond your control and not easy to predict. You will find information about applying for extensions and deferrals here.• Students MUST keep a copy and/or an electronic file of their assignment.• Checks will be made on your work using anti-plagiarism software and approved plagiarism checking websites.

Case Study Sample Content Preview:

DAL Plc. Investment Appraisal Case Study
Student Name
University
Course
Professor Name
Date
DAL Plc. Investment Appraisal Case Study
1 The NPV
Project

Cost (in £)

Project duration (in years)

Annual cash inflow (in £)

PVF of 14%

Present values (PV) (in £)

Net Present values (NPV) (in £)

1

1,500,000

18

222,500

6.467

1,438,907.50

(61,092.50)

2

350,000

7

175,000

4.288

750,400

400,400

3

165,000

7

41,000

4.288

175,808

10,808

4

245,400

12

62,000

5.660

350,920

105,520

5

752,100

11

146,600

5.453

799,409.80

47,309.80

6

192,500

9

55,500

4.946

274,503

82,003

7

613,000

15

101,250

6.142

621,877.50

8,877.50

8

783,000

4

263,000

2.914

766,382

(16,618)

NB: Net Present values (NPV) = Present values (PV) – Cost
a) From the net present value calculations, projects 2, 3, 4, 5, 6, and 7 are acceptable because they have NPV values of more than 0. However, projects 1 and 8 are unacceptable because they have NPV values of less than 0.
b) The projects from the highest to the lowest values are as follows.
Project 2, project 4, project 6, project 5, project 3, project 7, project 8, and project 1
2 Profitability Index
Project

Cost (in £)

Project duration (in years)

Annual cash inflow (in £)

PVF of 14%

Present values (PV) (in £)

1

1,500,000

18

222,500

6.467

1,438,907.50

2

350,000

7

175,000

4.288

750,400

3

165,000

7

41,000

4.288

175,808

4

245,400

12

62,000

5.660

350,920

5

752,100

11

146,600

5.453

799,409.80

6

192,500

9

55,500

4.946

274,503

7

613,000

15

101,250

6.142

621,877.50

8

783,000

4

263,000

2.914

766,382

Profitability Index = present values of future cash flows /cost
* Profitability index for project 1 = £1,438,907.50/ £1,500,000 = 0.959
* Profitability index for project 2 = £750,400/ £350,000 = 2.144
* Profitability index for project 3 = £175,808/ £165,000 = 1.066
* Profitability index for project 4 = £350,920/ £245,400 = 1.430
* Profitability index for project 5 = £799,409.80/ £752,100 = 1.063
* Profitability index for project 6 = £274,503/ £192,500 = 1.426
* Profitability index for project 7 = £621,877.50/ £613,000 = 1.014
* Profitability index for project 8 = £766,382/ £783,000 = 0.979
* The Projects from the Most to the Le...
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