BBAC602 Business Cooperate Finance Bangalore Airport Road
Assessment tasks:
Questions:
1. In the context of this project discuss the difference between:
• The “Funding” mechanism of this project
• The “Financing” mechanism of this project
(5 Marks)
• Develop a detailed NPV model in excel showing Cash Inflows, Cash Outflows and NPV of the project. What is the amount that you either expect to receive or are willing to pay the State Government to win this concession. (5 Marks)
• Provide your arguments. (5 Marks)
• Based on the information provided in the case study, you are required to make a recommendation on the following:
a) The key risks in this project from the perspective of APM, in particular:
• Interest Rate Risks
• Foreign Exchange and Commodity Price Risks
• Translation Risks
(5 Marks)
b) Innovative means of debt financing of the project, a rough debt maturity profile.
Discuss the merits and limitations of each form of financing proposed. In particular from: • Specialist Infrastructure Lending Institutions
• Domestic and International Banks
(5 Marks)
Introduction :
This case is related to the infrastructure of Banglor Airport Road. Given case study here that has got several
Free cash flows of the project for next five years can be calculated by adding depreciation values and subtracting changes in working capital from net income. In 2010, there will be a cash outflow of $2.2 million as capital expenditure. In 2011, there will be an additional one time cash outflow of $300,000 as an advertising expense. Using net free cash flow values for next five years and discount rate for discounting, NPV for the project comes out to be $2907, 100. The rate of return at which net present value becomes zero i.e.
2.1 Evaluate the decision making models which are used to support decision making 2.2 Identify those to be involved in analysing information and decision making 2.3 Evaluate methods of presenting decisions made
For the unit 6 assignment on case analysis, I will be conducting a case study on two clients.
* Taxation and salvage: Tax regulation in every country is different, so the company should consider it when calculating NPV. Also, it should clarify the depreciation expense and interest expense to
The lowest amount the firm should accept for the contract is $2,585,000. This is the total of all of the relevant costs for the project.
This document was prepared by Frances Tuer and edited by Jacqueline Glenney and Michael Robertson. It was designed to help students in MGMT 1P96 understand the case analysis process.
9. Identify relevant legislation on mandatory reporting and describe the requirements of your role as a Case manager in
2. Determine the project benefits, organizational readiness, and risk culture of the company in the case study. Provide justification for your response.
2. The current NPV is negative. One way to save money would be to reduce consulting costs. Please set the average consulting cost per month in cell b33 to $5000. At what discount rate is the NPV for the project 0?_____0.026____
The company should accept this project. The project payback period is between 2 to 3 years.
1. A spreadsheet with the lease or buy NPV analysis has been given to you.
For each project you’re planning, you need to be clear on just how much money you’re willing to spend.
7.0 Budget Estimate and Financial AnalysisA preliminary estimate of the cost for the entire project is $200,000. This includes the hire of a temporary project manager, and the hours used by current employees to work on the project. Project savings comes in the form of reduced health insurance cost due to a healthier workforce that makes fewer claims.
Under the current format, there is information that I deem crucial to making this decision that is not provided with the case study. Being that this Customer Satisfaction measure is new in the assessment scorecard (which was only briefly tested before being implemented) I would like
So based on above components, analytical model, research questions, and hypothesis we can determine the specification of information needed.