FIN80005 Corporate Financial Management – Individual Assignment Prepared by Dr Mardy Chiah Semester 2, 2019 The objective of this assignment is to encourage students to use Excel spread sheets to aid in solving a capital budgeting problem, and to analyse how the market impounds new information into stock prices. Topics 4 – 8 are particularly relevant for this assignment. Weight: 20% of total assessment Due date: 27 October, 2019. You must submit your report, in word or PDF format, electronically using the assignment submission link on Canvas. Late submissions: Late assignments cannot be accepted without penalty unless a time extension has been requested from, and approved by, the Unit Convenor. Such requests must be made in writing via email prior to due date. A late penalty of 10% per day will be applied for all late submissions. Format: This assignment is a problem solving exercise, using Excel spreadsheets for analysis, with discussion of findings. It should be written in a report format. The word limit of the report is 1,500 words (approximately 1,000 words for Part 1 and 500 words for Part 2). Report writing resources are provided under unit information on Canvas. A completed coversheet (available from Canvas) must be attached to your submission as a separate file

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FIN80005 Corporate Financial Management – Individual Assignment Prepared by Dr Mardy Chiah Semester 2, 2019 The objective of this assignment is to encourage students to use Excel spread sheets to aid in solving a capital budgeting problem, and to analyse how the market impounds new information into stock prices. Topics 4 – 8 are particularly relevant for this assignment. Weight: 20% of total assessment Due date:27 October, 2019. You must submit your report, in word or PDF format, electron- ically using the assignment submission link on Canvas. Late submissions: Late assignments cannot be accepted without penalty unless a time extension has been requested from, and approved by, the Unit Convenor. Such requests must be made in writing via email prior to due date. A late penalty of 10% per day will be applied for all late submissions. Format: This assignment is a problem solving exercise, using Excel spreadsheets for analysis, withdiscussionof?ndings. Itshouldbewritteninareportformat. Thewordlimitofthereport is 1,500 words (approximately 1,000 words for Part 1 and 500 words for Part 2). Report writing resources are provided under unit information on Canvas. A completed coversheet (available from Canvas) must be attached to your submission as a separate ?le. 1Hypothetical company background Bestfood Limited is a public listed company that specializes in the production of Asian delicacy. The production relies heavily on the use of machinery. The company has 1,680,000 number of shares outstanding trading on the stock exchange. Part 1 Bestfood is currently in negotiation with a large supermarket chain, 888Groceries Limited, to supply its Asian delicacy in a private label for 888Groceries. Under the terms, Bestfood is expected to supply Asian delicacy to 888Groceries every year for the next ten years. If Bestfood proceeds with the supply of delicacy, the company needs to purchase machinery to cope with the increase in production. New machinery is expected to cost…