Finance and Management

HI5002 Finance For Business

20 April 2023 16:28 PM | UPDATED 1 year ago

HI5002 Finance For Business :

HI5002 Finance For Business
HI5002 Finance For Business
Assessment Details and Submission Guidelines
TrimesterT3 2022
Unit CodeHI5002
Unit TitleFinance for Business
Assessment TypeGroup Assignment
Assessment TitleReflective learning report, Fact Finding of Securities Market and Capital Budgeting Analysis
Purpose of the assessment (with ULO Mapping)Students are enrolled in a Group of up to 4 members. The group will study, analyse and conduct academic work on the topics of financial management from week 1 to week 9 (ULO 1, 2, 3 and 4).
Weight40 % of the total assessments
Total Marks40
Word limit3,000 words ± 500
Due DateFinal Submission of Group Assignment: Week 10
Submission Guidelines  All work must be submitted on Blackboard by the due date, along with the completed assignment cover page. The template of the assignment cover page is provided in the assignment link.The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. Excel files, PDF files and other Black Board unsupported files are given zero marks.Reference sources must be cited in the text of the report and listed appropriately at the end in a numbered reference list using the Adapted Harvard Referencing style (please see guideline at the end of the assignment). A penalty is applied for incorrect referencing.Submitted work should be your original work showing your genuine engagement in this Unit. Evidence of your original Group work (allocation of tasks, discussion, file exchanges, drafts, etc.) needs to be presented in the records of your Group work in Group Blogs. It is available in Group Tools in your Group for Group Assignment. Your assignment WILL NOT BE MARKED without the evidence of your Group work.Students need to read and understand the Holmes Academic Integrity Policy before they start any assessment to ensure that their assignment is misconduct free. (Please refer section 4.3 Guide to Academic Integrity p 27 of the Holmes Student Handbook and read Six Categories of Academic Integrity Breaches at the end of assignment carefully.)Three (3) attempts of submission are allowed for checking similarity and final submission. And, only the final submission is marked. As a guide similarity score of over 50% is considered as excessive plagiarism except in the cases where the similarity is caused by the use of template provided by the lecturers, specific types of assignment, references or sources of data. It takes 48 hours for the self-check report to be available for your viewing. Please note that fact findings and working at same case study project evaluation assignment like this one may yield higher than 50% similarity. Therefore, do not panic and
HI5002 Finance
 send emails to your lecturers and Unit Coordinator about high similarity after your submission if your work is genuine. When you submit your assignment electronically, please save the file as ‘Group Assignment- your Group number.doc’. You are required to submit the assignment at Blackboard/Assessments/Group Assignment Information/Group Assignment and Submission Link. Always keep an electronic copy of your original file until you have received the final grade for the Unit. Please make sure that you submit the correct file in the correct format that is readable in Black Board.
HI5002 Finance

ASSIGNMENT SPECIFICATIONS

  1. HI5002 Finance Assignment Tasks

This assignment task is a written report that includes 3 parts:

Part 1: Reflective learning report of 1 assigned topic among 9 first topics of the course.

Part 2: Fact finding of the securities market in Australia.

Part 3: Capital Budgeting and Project Evaluation.

Please also note: Group Assignment for HI5002 is DIFFERENT every trimester. An attempt to submit a PREVIOUS TRIMESTER ASSIGNMENT or A WRONG ASSIGNMENT will be graded as ZERO (0) mark

without any consideration for resubmission. Using SECONDARY DATA (research done by others) for Reflective learning report in Part 1 and Case Study in Part 3 is not recommended and will be penalised. References in Part 2 should be provided as instructed in the Submission Guidelines.

II.  Contribution of Group members

Each group needs to ensure that members equally contribute to Group work (10% each for a four-member Group). Non-responding and non-contributing Group members need to be reported by Groups to the Unit Coordinator for removal from the Groups before week 10.

Percentage of contribution and tasks (for example Part 1. Questions 1 and 2) done by each Group member must be agreed upon by all Group members and specified clearly in the table of Information for HI5002 Group Assignment T3 2022 Marking (below).

Marks for each Group member will be awarded by markers in accordance with the percentage of contribution and quality of the parts done by that member.

  1. Assignment structure and questions

The assignment should cover the structure and contents described below.

ASSIGNMENT COVER PAGE

Please use the provided template

Information for HI5002 Group Assignment T3 2022 Marking:

(Please fill in this table and put it right before the Introduction part in your assignment. It is important for marking, the penalty is applied for missing information)

Student name and IDCampus and Tutorial Group NumberWhich section(s) did each person work on?Contribution (%)
    
    
    
    
HI5002 Finance

Part 1. Reflective learning report (13 marks)

Your group is required to write a reflective learning report on a topic assign to your group (allocation of topics is given in the assessment folder). The following requirements must be met for this Reflective learning report to be marked:

  1. Reflective leaning report must be based on the topic assigned and selection of a random topic will be graded zero in part 1.

To complete the reflective learning report, answer the following reflective questions:

Question 1: What are the financial concepts you learned in the session? Briefly explain the concepts. (please only explain the financial concepts discussed in the interactive tutorial session, not all the financial concepts discussed in the recorded lecture) (3 marks)

Question 2: What are the important issues your lecturer reminded you to note down and pay special attention to concerning the financial concepts/formulas/calculations/skills/techniques you learned in that session? (5 marks)

Question 3: Discuss the use of above financial concepts in real life decision making by (i) individuals, (ii) households and (iii) businesses. (5 marks)

Part 2. Fact finding of the securities market in Australia (10 marks)

You are required to explore the data and information from ASX(Australia Stock Exchange: www.asx.com.au) and ASIC(Australian Securities and Investment Commission: https://asic.gov.au/) to complete task 1 and 2.

Task 1: Read and briefly summarise the contents of 3 investment options offered by ASX to investors.

(3 marks).

Task 2:

  1. Search information from ASX on securities issuance and answer 2 questions assigned to your group. (3 marks).Search information from ASIC Portal for Finance Professional and answer 2 questions assigned to your group. (2 marks)Search information from ASIC Portal for Businesses and answer 2 questions assigned to your group. (2 marks)

Note

  • Task 1 and 2 need additional information and each group has different set of questions. This additional information will be given in week 7 interactive tutorial.
  • These are fact-finding questions and all the information needs to be taken from the provided sources (ASX and ASIC websites).
  • Students need to explore data and information from above websites. However, you are not allowed to directly copy and paste content into your assignment (Please check the Holmes Adapted Harvard Reference guide for correct intext citation and referencing)

Part 3: Capital Budgeting and Project Evaluation (15 marks)

  • Capital Budgeting Decision Making (7 marks)

Case Study: Assume that your group is working in Finance Department of a construction company. Your company is considering to invest in a 5-year project. Two options are recommended:

Option 1: Build a new ocean-view apartment building on the Gold Coast.

Option 2: Build a new residential quarter in the suburban area of Melbourne.

Your company’s Board of Management (BOM) is very concerned about the capacity to generate shareholder value and increase the return on the recent projects. The BOM has especially requested that your financial team recommend a project evaluation method to address the concern. The table below shows the estimated cash flows available for each option:

 Option 1 Commercial buildingOption 2 Residential block
Initial Investment2,500,0002,400,000
Cash flow in
Year 1420,000410,000
Year 2560,000530,000
Year 3575,000560,000
Year 4656,000645,000
Year 5700,000720,000
   
HI5002 Finance

You are required to write a short report to the BOM in order:

  1. To select a relevant method among 6 investment criteria for this project from:
  1. Net Present Value (NPV),
  1. Equivalent Annual Cost (EAC),
    1. profitability Index (PI),
      1. Internal Rate of Return (IRR),
      1. Simple Payback Period (SPB), and
      1. Discounted Payback Period (DPP)

Assume the given discount rate applied for all projects is xxx% (to be provided later) and the company’s benchmark of payback is maximum 2.5 years.

Your recommendations must include your justification why you choose the specific method based on:

  1. its pros and cons compared to other methods,
    1. the BOM’s concern of efficiency and
      1. the financial circumstance of the company. (2 marks)
  • To perform the selected method and present the outcome of your project evaluation and recommendation, should the company choose the Option 1 or 2 for this project?

Your justification must include calculation steps and numerical outcomes. (5 marks)

Students are required to attend tutorial sessions to know how to work on these capital budgeting questions with correct discount rate, terminologies, templates and calculations. Details of explanation will not be provided in tutorial solutions.

3.2.  Risk Analysis and Project Evaluation: NPV Sensitivity Analysis (8 marks)

Case Study: Assume that your group is working in the Finance Department of a production company. Your company is considering buying a new assembly line for launching a new product. With the new assembly line, the company expects to sell 7,500 products/ year for an average price of $450 per Unit for 5 years.

The new assembly line has:

the initial cost of $1,850,000, and

a residual value of $250,000 at the end of the project.

The company will need to add $450 000 in working capital, which is expected to be fully retrieved at the end of the project. Other information is available below:

Depreciation method: straight line

Variable cost per Unit: $210

Cash fixed costs per year: $200,000 Corporate marginal tax: 30% Discount rate: xxx%

Upon the forecast of unstable economic conditions, the BOM requires your Team to prepare a risk analysis for the case where:

Unit sales decrease by 15% Price per Unit decreases by 15%

Variable cost per Unit increases 15% Cash fixed cost per year increases by 15%

Required: Do an analysis with cash flows of the project to determine the sensitivity of the project NPV with the above estimated changes in the value drivers and provide your results in relevant tables.

Note: Each group will work with different discount rate and will be given after week 5.

Assignment Preparation guideline – Important Note: Students are required to attend Tutorial Sessions for guidance and inputs to answer the questions in Part 1 and Part 2, and discount rates and training on how to work with correct capital budgeting technique, proper format, structure, calculation tables and terminologies in Part 3.

Assignments with different data, information, templates, terminologies and calculations from the solution templates and guidance provided to you in the tutorial sessions will be investigated as suspected academic misconduct.

Student Assessment Citation and Referencing Rules Adapted Harvard Referencing Rules

Holmes has implemented Adapted Harvard Referencing. The following rules apply:

  1. Reference sources in assignments are limited to sources that provide full-text access to the source’s content for lecturers and markers.
  • The reference list must be, numbered, located on a separate page at the end of the essay and titled: “References”.
  • The reference list must include the details of all the in-text citations, arranged A-Z alphabetically by author surname with each reference numbered (1 to 10, etc.) and each reference MUST include a hyperlink to the full text of the cited reference source. For example:
Text Box: 1. Hawking, P., McCarthy, B. & Stein, A. 2004. Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
HI5002 Finance
  • All assignments must include in-text citations to the listed references. These must include the surname of the author/s or name of the authoring body, year of publication, page number of the content, and paragraph where the content can be found. For example, “The company decided to implement an enterprise-wide data warehouse business intelligence strategy (Hawking et al., 2004, p3(4)).”

Non-Adherence to Referencing Rules

Where students do not follow the above rules:

  1. For students who submit assignments that do not comply with the rules, a 10% penalty will be applied.
  2. As per the Student Handbook, late penalties will apply each day after the student/s has been notified of the due date.
  3. Students who comply with rules and the citations are “fake” will be reported for academic misconduct.

Marking criteria

Marking criteriaWeighting
Part 1. Reflective learning report of a selected topic among first 9 topics of the course (13 marks) 
Question 13
Question 25
Question 35
 
Part 2. Fact finding of securities market in Australia (10 marks)
Task 13
Task 27
 
Part 3. Capital Budgeting and Project Evaluation (15 marks)
3.1. Capital Budgeting Decision Making7
3.2. Risk Analysis and Project evaluation-NPV Sensitivity Analysis8
 
Part 4. Academic Writing: Presentation, structure and academic writing (2 marks)2
  Total weight of written report40
HI5002 Finance

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or Unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self- plagiarism.
CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.
CopyingReproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
ImpersonationFalsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsificationManipulating or inventing data with the intent of supporting false conclusions, including manipulating images.
HI5002 Finance

Source: INQAAHE, 2020

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