Ask Question, Ask an Expert


Ask Project Management Expert

Objective: This task will give you some experience using common time value of money related finance methods.
Specific Requirements for this Assignment:
1) You should use Microsoft Excel software for this assignment.

2) Submit a Microsoft Excel workbook titled SEB324 A3 Part 4.xlsx (or .xls)

3) Provide the computations and answers for all problems with one sheet in the workbook used for each problem. So that means your single submitted workbook file should consist of two spreadsheets. Label each spreadsheet in your workbook file respectively as problem 1 and problem 2.

4) Provide all answers to two decimal places and/or the nearest cent.

problem 1: You receive an offer in the mail from the Norman Harvey Bank inviting you to apply for a new personal loan. The offer invites you to access immediately up to $20,000 on this special personal loan with the principal amount to be repaid in full plus all accumulated interest in 24 months’ time. (There are no interim repayments to be made between now and when the total amount is due in 24 months’ time.) Interest will be computed on a monthly compounding basis at 0.72% per month. 
Also in the mail you have received an offer from the West Bank inviting you to apply for a new term deposit account which pays a nominal interest rate of 8.65% p.a. computed monthly on a compounding basis. The minimum initial deposited amount required is $20,000 and any deposits must be left in the account for a minimum of 24 months. 
You are considering applying for the personal loan from the Norman Harvey Bank in order to immediately invest the entire $20,000 into the West Bank term deposit account being offered. Does this investment opportunity offer a worthwhile positive return on investment from combining these two offers? Would you recommend this opportunity? Justify your answer.

problem 2: You have been asked to evaluate the financial viability of three investment options for your company. You are asked to use the Simple Payback, IRR, and NPV methods to evaluate the options and make a recommendation on which of them, if any, to proceed with. The selection of any option is mutually exclusive. Perform simple payback, IRR, and NPV analyses on the investment options.
The expected nominal cashflows for Years 1 through 5 produced by each investment option are provided in the table below. The initial amount required for all three-investment options is $15,000. For the NPV analysis assume a cost of capital of 10% p.a. For the IRR analyses assume the minimum rate of return required for any option to be considered viable is 15% p.a.

1324_nominal cash flows.jpg

Which investment option, if any, would you recommend and why? Justify your answer.

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M9348

Have any Question? 

Related Questions in Project Management

Develop and describe an entrepreneurial storyboard for a

Develop and describe an Entrepreneurial Storyboard for a current product on the market. Template will be provided with examples in class. Deliverables: The Storyboard will be presented in two forms: 1 One four-slide Powe ...

Assignment - reflection writingquestion 1in module 1 the

Assignment - Reflection Writing (Question 1): In Module 1, the first required assignment asked you to examine the course and relate it to a current, real-world event or recent news story. Based on what you have learned i ...

Assignment - creating a wbs for the construction of a

Assignment - Creating a WBS for the Construction of a House Steve Rogers was busy making supper with his wife, Natasha, and they were discussing the house that they had decided to build. They had made the decision that S ...

During this discussion talk about and examine the processes

During this discussion, talk about and examine the process(es) of collecting information security measures, how often do they need to be collected, what are the downsides of collecting and reporting the measures too freq ...

For this assignment you will develop a project plan using

For this Assignment, you will develop a project plan, using as your focus a work-related project you are doing now or will be doing in the future. Part 1: Service Level Agreement It is suggested that the project you sele ...

Task - weightingyour team should consider a newactual

TASK - WEIGHTING Your team should consider a new(actual/ hypothetical) project. You have to develop a project management plan for the project selected by your group. Your project management plan report shall cover manage ...

What are the differences between a project operations and a

What are the differences between a project, operations, and a program? Please be sure to provide an example and justification for each. Your response should be at least 200 words in length.

Taskpart oneproject name team descriptionworking as a

Task Part One: Project Name / Team / Description Working as a team you are to - Agree on a suitable team name, list all team members and provide their contact details in a professional looking document. - Provide an over ...

Locate and review an article related to why organizations

Locate and review an article related to why organizations adopt a project and organize their work as a series of tasks involved in project management. The article you select must be from a CSU Online Library database, no ...

It project management techniques assignmenttask - team

IT Project Management Techniques Assignment Task - Team Project Management Plan. Objectives - This assessment task relates to the following course objectives: Identify traditional and agile approaches and lifecycles for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate