The final assessment requires a PowerPoint with voiceover submission (approximately 12 to 15 minutes) answering the final assessment case study explaining the process taken with supporting calculations when developing
The new launch Development Plan will:
1) Identify when to use appropriate equations to solve business problems
2) Calculate trade and cash discounts
3) Determine Markups and Markdowns
4) Identify and calculate different payroll elements
5) Calculate payroll, taxes and deductions.
Submission:
Calculating NPV and IRR
Businesses use NPV and IRR to determine whether a project will add-value for shareholders. After watching the CFA Level I Corporate Finance video, answer the following questions.
1. According to the video, how should a company use NPV and IRR to decide whether a project should be undertaken?
2. In the video, Trim Corp. is considering a project that is expected to have cash inflows of $350, $250, and $150 in years 1, 2, and 3, respectively. What do you think would happen to the NPV of the project if the company expected the same cash flows, but in reverse order? In other words, what do you think would happen to the NPV of the $150 were the cash inflow in year 1, $250 were the cash inflow for year 2, and $350 were the cash inflow for year 3? Using the same discount rate as in the video, 25%, calculate the NPV for the project with this string of cash outflows.
The Tokyo Olympics
After watching How the Tokyo Olympics Became the Most Expensive Summer Game Ever video answer the following questions.
3. As you saw in the video, the capital investment a city must undertake to host the Olympic Games is massive. Given the costs discussed in the video, create and Excel spreadsheet to estimate the NPV and IRR of hosting the Olympic Games for the city.
4. How would the number in your Excel spreadsheet change because of the COVID-19 pandemic? Create a NPV profile for Tokyo’s Olympic Games given the changes that were caused by the pandemic.
Check Before Submission:
Before submitting, double-check, have you have met the criteria noted below. Did you….
Identify correct calculations and formulas for the NPV & IRR
Include the logical answers for each question.
Utilize the financial formulas application in your Excel spreadsheet.
Implement course materials and research materials to support your formulas.
Check for accuracy in composition, APA format, and meeting the guidelines as delineated step 2. Additional Resource
Below are additional resources to aid you in the development of your product or service plan.
Using APA when referencing: https://www.youtube.com/watch?v=f7vhZVlIND8
Using Excel to calculate NPV and IRR: https://www.youtube.com/watch?v=lWY3abc4hz0
