Group projectBusiness Finance – FINA 3313Assignment #5 Instructions: The fifth assignment is a detailed capital budgeting analysis of a

Group project

Business Finance – FINA 3313

Assignment #5

Instructions: The fifth assignment is a detailed capital budgeting analysis of a clothing company
opportunity. The company wants to launch a new clothing product line by investing
approximately $9 million into the product line with homes of selling millions of items over the
next decade. It wants your team to evaluate whether this is a wise business decision or not
based on a thorough 10-year projection discounted cash flow analysis. Here is what you need
to do:

• Form your groups (keep the same group you worked with previously unless you get approval to

change groups)

• Your group will be assigned what Business opportunity (clothing line) you are to analyze.

• Find the tab for your assigned business opportunity (clothing line) with the required data that

you need in the file Assignmnet_5_data.xls.

• Build a 10-year discounted cash flow model based on the provided data to analyze the

opportunity.

• Using the provided data calculate the WACC and use this as your discount rate.

• Build a base case based on the provided data, analyze the results.

• Build an optimistic case based on the provided data, analyze the results.

• Build a pessimistic case based on the provided data, analyze the results.

• Run sensitivity analysis on the key variables to this business, analyze the results.

• Run a break-even analysis on the key variables and analyze the results.

• Determine NPV, IRR, PI, Payback Period for each case analyze the results.

• Build a PowerPoint presentation detailing your analysis and findings 6-10 slides should cover it

well. Make sure to evaluate each case, the sensitivity analysis, break even analysis and results

of opportunity on an NPV, IRR, PI, PP perspectives to determine if this is a good opportunity or

not.

• In your PowerPoint presentation include an oral presentation to corresponds to your slides and

your analysis. Each group member should be presenting a portion of the analysis. Talk about

what you did, how did you perform your analysis, what did you find out and what do you think

about the opportunity. The presentation should be about 15 minutes in total.

I look forward to reviewing your analysis and hearing your presentations.

Weighting: Assignment #5 represents 7% of your final grade

Delivery: Post your completed PowerPoint presentation and excel model in canvas

Due Date: Assignments are due in Canvas by end of day May 1

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