Discounted Cash Flow analysis - Accounting Assignment

Internal Code: MAS5869

Accounting Assignment:

You are required to submit a project report that describes and evaluates three project alternatives, using the project evaluation techniques discussed in this course. The project alternatives may be hypothetical. Assume you are writing a proposal to your Board of Directors. Questions:  1. Prepare a clear definition of the objectives of the project and, where practical, this should be related to the current strategies of the organisation. 2. The formulation of options to achieve the objectives (e.g. set up a manufacturing plant at locations in countries A, B, or C). Three investment alternatives should be compared. 3. A formulation of the detailed costs and benefits of the options. 4. Calculate the cost of capital (debt/equity). 5. Evaluate each option using DCF techniques (use a minimum period of 5 years and justify the discount rate used). 6. Evaluation of the risks of the project. 7. Recommendation of the most economical option and discussion of any non-financial factors relevant to your decision.