Finance – Risk, Reward & Planning

Risk, Reward & Planning

– Analysis of NPV
– Conclusions and make a decision based on the financial criteria.
– Explain the concept of a critical pathway. Explain if the project can be delivered on time if the acceptable time frame is 12 months or less.

General guidelines:

Harvard referencing style 550 words total minus reference list No introductions or abstract or summary or conclusion The report should consist of the tasks below,

Risk, Reward & Planning

HINT: Use your chosen data set – using the website search facility with phrase like ‘budget’, ‘finance’ or ‘project management’ etc. – complete the following table and address the following tasks. Provide the web link and details of all the data sets.

1. Using suitable data from your chosen data set fill in the following table… Period (Year) 0 1 2 3 4 5 Cash Outflow (£) Cash Inflow (£)

Assuming a payback period of five years as a hurdle rate for any new project and a weighted average cost of capital (WACC) of 4%, create an analysis of payback and discounted payback (use the WACC as the discount rate)

2. Create an analysis of the net present value

3. Draw conclusions and make a decision based on the financial criteria

4. Using your table below, prepare a network diagram including a clearly highlighted critical pathway for your series of project stages. Explain the concept of a critical pathway. Place this work in an appendix.

Explain if the project can be delivered on time if the acceptable time frame is 12 months or less. This task goes in the Appendix Stage Process Dependent Tasks Time to Completion A ? ? ? B ? ? ? C ? ? ? D ? ? ? E ? ? ? F ? ? ? G ? ? ?