A case study is a description of an actual situation involving a decision, a challenge, an...

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A case study is a description of an actual situation involving a decision, a challenge, an opportunity, a problem or an issue faced by a firm. The case requires the students to step figuratively into the position of a particular decision maker, specifically to reader identify, analyze, and to propose solutions to the problem using data analysis, and technology. You are required to complete the assessment outline below and submit your completed final document through online Canvas by April 13. In addition, you must upload both excel which shows cashflows and calculations and final report in word file. Questions Case 1: Anwar Gas Traders: Capital Budgeting for expansion project 1. (5 points) Provide an introduction into the case with a problem statement. 2. (10 points) What is the central issue facing Anwal Gas Traders? 3. (35 points) Perform the capital budgeting for the project and calculate the NPV, IRR, payback period and profitability index. 4. (20 points) A consultant suggests that the government may increase the sector's tax from 29 percent to 35%, resulting in a price increase of only 3% annually. What changes in the capital budgeting process should be made? How will this tax and price increase affect the company's decision? 5. (20 points) The finance department recommends a local bank interest rate of 19 percent* and a WACC of 15%. Conduct capital budgeting techniques for the given scenario. *You may assume that this is the effective cost of debt (rd) paid by the firm and used in the new WACC. Should you be critical to the WACC of 15% proposed by the finance department? 6. (10 points) Summarize the findings and answer the problem statement in the conclusion. Page 2 of 2 A case study is a description of an actual situation involving a decision, a challenge, an opportunity, a problem or an issue faced by a firm. The case requires the students to step figuratively into the position of a particular decision maker, specifically to reader identify, analyze, and to propose solutions to the problem using data analysis, and technology. You are required to complete the assessment outline below and submit your completed final document through online Canvas by April 13. In addition, you must upload both excel which shows cashflows and calculations and final report in word file. Questions Case 1: Anwar Gas Traders: Capital Budgeting for expansion project 1. (5 points) Provide an introduction into the case with a problem statement. 2. (10 points) What is the central issue facing Anwal Gas Traders? 3. (35 points) Perform the capital budgeting for the project and calculate the NPV, IRR, payback period and profitability index. 4. (20 points) A consultant suggests that the government may increase the sector's tax from 29 percent to 35%, resulting in a price increase of only 3% annually. What changes in the capital budgeting process should be made? How will this tax and price increase affect the company's decision? 5. (20 points) The finance department recommends a local bank interest rate of 19 percent* and a WACC of 15%. Conduct capital budgeting techniques for the given scenario. *You may assume that this is the effective cost of debt (rd) paid by the firm and used in the new WACC. Should you be critical to the WACC of 15% proposed by the finance department? 6. (10 points) Summarize the findings and answer the problem statement in the conclusion. Page 2 of 2