MGT 160 - Group Project (1)

MGT 160 - Group Project (1) - appropriate. Whichever...

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Mgt 160 Course Project The purpose this project is to use the financial decision-making tools from class to analyze an actual investment. Your group may consist of one to four members. Your project is to perform a detailed analysis of what the associated cash flows and required return will be from your project. Then analyze those cash flows using NPV, IRR, and Payback Period. Finally, conclude whether or not this is a worthwhile project. For this project, you must decide on a business to start. Cash flows will be estimated by predicting costs and revenues. The required return is the interest rate that the bank charges for your loan to start the business. Analysis can be performed either monthly or annually. Both projects should consider a 10 year time horizon, with a terminal value if
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Unformatted text preview: appropriate. Whichever project you choose, you must provide as much detail as possible for determining cash flows and required rates. Minimum necessary effort will receive a minimum passing grade (C-). Lots of careful detail and prediction of cash flows will bring the group grade closer to an ‘A’. Please turn in a typed, organized report consisting of the following: Cover Page (group member names, chosen assignment) Section 1 (Clearly displayed project cash flows and required return) Section 2 (NPV, IRR, and Payback results, and determination of project worthiness) Section 3 (Details of cash flow and required return calculation and estimation – sources for your assumptions)...
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This note was uploaded on 12/18/2011 for the course MGT 160 taught by Professor Staff during the Fall '08 term at UC Davis.

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