Cost Management and Financial Analysis - Finance Assignment - Business Report Writing

Internal Code: MAS3604

Finance Assignment Report

Overview: Markets City Supermarket ? High Level Feasibility Analysis Your group is a Managing Accounting team for Woolworths Supermarkets AUSTRALIA. The supermarket shop lease (store R1.01) on the first floor of the Market City shopping centre (currently leased by Thai IGA X?press Supermarket) is coming up for tender, with a new leasehold period FY18?FY32 (i.e., a 15 year lease). (The Market City shopping centre is adjacent to UTS Building 5 on top of Paddy’s Markets.) TASK: Q. Estimate the maximum annual lease amount WOW should offer to meet their (before inflation) hurdle rate of 11%? You must only use publicly available information, e.g., WOW 2016 Annual Report and the WOW 2016 CSR report. Your financial analysis must be underpinned by disclosed assumptions and proxies. An example of an assumption is: “The model is on an annualized basis. For Year 1 we have assumed a full year of trading at full volumes, even though is unrealistic and also that the fit?out of the store will take approximately the first 3 months." You must consider an explicit Energy Efficiency initiative in your analysis. The initiative must be about electricity usage in the Markets City supermarket store itself. You must discuss and quantify how this specific initiative that you identify and analyze would impact the Sustainability Metrics that will be reported in the WOW Corporate Responsibility Report 2016.