Saturday, March 28, 2020

Investment Project & Project Analysis.

Investment Project & Project Analysis.
One of main highlights of the course for the midterm is valuing an investment project and analyzing it. Students will be able to perform the procedure of creating a spreadsheet for a hypothetical project, evaluate it with four investment criteria, and demonstrate breakeven analysis, sensitivity analysis, and scenario analysis.
This assignment is very important in that students will face this type of interview questions in hiring procedure and that students planning their own business must provide investors with the investment project spreadsheet to propose a funding. Please carefully read the instruction to get a high grade and to prepare your future.
A. Instruction
1. Students will create a hypothetical but realistic project just like United Pigpen (Excel Exercise) case and submit Investment proposal in Word file and Spreadsheet in Excel file.
2. Word file MUST include: (1) Project description (2) List of Input variable assumptions (3) Investment proposal (Please use the Word format below.)
3. Excel file MUST include: (1) Input variable assumptions in each cell using Note (2) FCFs spreadsheet model (3) Investment criteria (4) Breakeven analysis (5) Sensitivity analysis (6) Scenario analysis.
   a. You may use Spreadsheet from Excel Exercise example, which is a basic format, but students should develop their own spreadsheet model beyond the example in order to get a higher grade.
   b. Any other project spreadsheet from other websites or Google is acceptable but MUST include all the required work mentioned above.
B. Grading Criteria
1. Must submit Both Word file and Excel file.
2. SharingExcelmodel, project description, orlist of the assumptions with others will result in Zero grade both giver and receiver. (Turnitin over 50%). This is an alternative of Midterm Exam.
3. Reduction criteria. (Refer to the rubrics for the specific point reduction.)
a. Just using the same Excel Example model without development won’t get full credit.
b. Missing or Sharing the requirements on the Word file.
c. Missing or Sharing the requirements on the Excel file.
d. Failure of connecting Input variablesall the way throughspreadsheet. All the values inspreadsheet MUST be connected to input variables. Don’t put a hard number anywhere in spreadsheet except Input variables. (That’s the mostserious failure of spreadsheet in the real business! Investors or your boss will try to change the variables to see how the investment criteria change.)

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