Question: The third part is about project development and analysis. In this part, you will choose a project that you aspire to establish and evaluate the
The third part is about project development and analysis. In this part, you will choose a project that you aspire to establish and evaluate the financial viability of the project. Specifically, i give reasons why you selected the project, ii what would be the initial investment in the project? iii what would be the annual operating cash flow during the life of the project? iv will the final year cash flow be different from annual cash flow, why or why not? vi What would be your source of financing and what would be the weighted average cost of capital? vii What would be the payback period, net present value, internal rate of return, profitability index of the project? viii why the project is worth investing not investing? Answering these questions are bare minimum, you can enrich your write up with additional information and analysis. You are free to make certain assumptions, but they must be realistic one. For example, assuming one method of depreciation is not enough, your choice of the method of depreciation should be consistent with the nature of the assets. Further, data used also must be realistic one. For example, instead of assuming Rs x as the initial outflow of the project, give details how that that amount was arrived at You can add worksheets of your estimations and evidences thereon in the annex of your report. This part will carry marks
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