There is no "right" answer to this case study. The data allows for several assumptions and interpretations to be made; this is an attempt to duplicate the reality of management decision making where information is never complete. In marking the calculation elements credit will be given provided the approach adopted is reasonable and is justified. In assessing the report element, a logical flow of argument is expected, based on the supporting calculations and a synthesis of material to arrive at a sustainable recommendation.

2. It is essential that you document all assumptions underlying your analysis. Assumptions made must be realistic. 

3. A critical awareness of the financial techniques used is required - their limitations and underlying assumptions.

4. Most data is based on estimates; how sensitive is your recommendation to the accuracy of these estimates - how much would they have to change for your recommendation to change?

5. Remember that investment decisions are not taken purely on the quantitative financial appraisal. Are there other qualitative factors which are important to identify in the report?

6. Ensure your conclusions and recommendations are justified and supported by the facts.

7. Study the assessment criteria sheet carefully; it provides general guidance on expected content for each element and the relevant weightings attaching to each aspect of assessment.