Question: needed the answer before sunday ACCT702 Case analysis and submission Wonder Kidz Case Guidance (10% weight) You are a team of financial consultants hired to
ACCT702 Case analysis and submission Wonder Kidz Case Guidance (10% weight) You are a team of financial consultants hired to assist the client, Mr. Bansal. Instructions 1. Read the case individually and jot down your notes. 2. Discuss the case with your group. 3. Evaluate the proposed project for Mr. Bansal using the capital budgeting techniques (including IRR) you have learnt in the course so far (Chapter 8 NPV and other investment criteria). Assume the opportunity cost of capital is 12% (that is, 15% net of 20% tax). 4. Also, include a sensitivity analysis if Mr. Bansal decides to provide a fee reduction in the expected revenue for 5 years as follows: Note: Use the following revised expected revenue structure with the fee reduction (all other assumptions remain the same as given in Exhibit 3)./ Fees are in Indian Rupees Year 1 Year 2 Total strength New enrolments Returning Fees - New students (one time and annual) Fees - Returning students (annual) 35 35 0 17,500 50 25 25 18,000 Years 3-5 (per year) 80 40 40 18,500 15,500 16,000 5. In 700-800, words discuss whether your group feels the project is financially viable, supported by your group's calculation(s) and discussion. Make a recommendation to the client based on your group's analysis in Steps 1-4. Please submit one Word document ACCT702 Case analysis and submission Wonder Kidz Case Guidance (10% weight) You are a team of financial consultants hired to assist the client, Mr. Bansal. Instructions 1. Read the case individually and jot down your notes. 2. Discuss the case with your group. 3. Evaluate the proposed project for Mr. Bansal using the capital budgeting techniques (including IRR) you have learnt in the course so far (Chapter 8 NPV and other investment criteria). Assume the opportunity cost of capital is 12% (that is, 15% net of 20% tax). 4. Also, include a sensitivity analysis if Mr. Bansal decides to provide a fee reduction in the expected revenue for 5 years as follows: Note: Use the following revised expected revenue structure with the fee reduction (all other assumptions remain the same as given in Exhibit 3)./ Fees are in Indian Rupees Year 1 Year 2 Total strength New enrolments Returning Fees - New students (one time and annual) Fees - Returning students (annual) 35 35 0 17,500 50 25 25 18,000 Years 3-5 (per year) 80 40 40 18,500 15,500 16,000 5. In 700-800, words discuss whether your group feels the project is financially viable, supported by your group's calculation(s) and discussion. Make a recommendation to the client based on your group's analysis in Steps 1-4. Please submit one Word document
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