Purpose: Analysing and understanding of sensitivity, scenario and break-even analysis in capital budgeting decision making. This assessment contributes to learning outcomes a. b and c.
Value: 30% Due Date: Week 10 – 8.00pm Wednesday of Week 10
Submission requirements details: Students are required to submit both hard and soft copies. The hard copy should be submitted to their tutor during Week 10 and soft copy should be submitted to Tumitin. The matching percentage shouldn’t exceed 25%.
Topic: Company management could use sensitivity. scenario. break-even and simulation analysis in their corporate decision making. when related to capital budgeting techniques such as. Internal Rate of Return. Net Present Value etc.
Explain the following concepts in relation to Capital Budgeting Techniques. a. Sensitivity analysis b. Scenario analysis e. Break-even analysis d. Simulation analysis
Task Details: Students are to analyse information, doing relevant research regardng sensitivity, scenario, break-even and simulation analysis. They am to create relevant, supported conclusions and make justified recommendations to given issues and problems. Responses are to be formatted into a professional essay, as would be expected of someone working in a modern accountants or financial advisor’s office. Presentation: 2000 words typed in word .doc essay format: title page, introduction. suitable headings and subheadings. conclusions and recommendations. reference list (Harvard – Angelia style), attachments. e.g. spreadsheets. Research Requirements: Students need to support their analysis with reference from the text and a minimum of (6) suitable and reliable. current and academically acceptable sources – check with your tutor if unsure of the validity of sources. Students seeking Credit or above grades should support their analysis with increased number of reference sources comparable to the grade they are seeking.
Marking Guide: Analysis 30% Research – extent and application 30% Recommendations/conclusions 30% Presentation 10% Total 100% Total out of 100% will be scaled to a mark out of 30
A more detailed marking guide is provided in the Marking Guide on the following page.