New

Learn smart - Learn online. Upto 88% off on courses for a limited time. View Courses

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

8 Pages
BE312 Quantitative Foundations of Finance

Individual Coursework Question 1: Compare and contrast a person who is risk averse to a person who is a risk lover. Provide, with an example to illustrate your understanding, an economic explanation o ...

Type

Course Work

Subject

Finance

University

Singapore University of Social Sciences

2 Pages
Management

Evaluate an agribusiness company and the industry it operates in. What is the economic and competitive environment the company is influenced by? How might the industry structure influence the financia ...

Type

Assignment

Subject

Finance

3 Pages
ACC701 Financial Accounting

Discuss, analyse and research ethics and governance of the above case . Your paper should address the stakeholders, ethics, governance, changing depreciation methods and suggestions for Andrea to ensu ...

Type

Assignment

Subject

Finance

9 Pages
Management

Paper: In 3 pages must include introduction and conclusions at the end, good grammar using American English spelling. Academic writing is a must with references. Papers should be double spaced in Time ...

Type

Assignment

Subject

Finance

BEAM046 Financial Modelling

Question

Answered

Questions:

Strategic Financial Modelling Consultants ‘SPMC’ specialises in strategic Joint Venture (JV) projects across UK cities, for a share of Profit or Loss in each JV. The firm partners with new entrepreneurs, who are interested in franchising products of major international brands over a six (6) year period only. Thereafter; SPMC must divest, without any payment due/received. 

A typical partnership deal requires SPMC to develop a strategies business plan for the franchisee, secure funding, contribute to strategic management decisions, undertake risk management, tax-planning and regulatory compliance. In April 2020, several potential franchisees approached SPMC for Joint venture deals across UK cities. 

A schedule of prospective JV Partners is presented in the accompanying Spreadsheet Template, used by the SPMC Financial Analyst, to evaluate each proposal. SPMC scores and ranks proposals according to a strict Benchmarks/Thresholds, which are the firm’s Key Performance Indicators (KPIs). 

Benchmarks/Thresholds
Each Project should meet every criterion below (Status Options: ‘Achieved’ or ‘Failed’)
(a) Net Present Value (NPV) of £500,000 from the investment (i.e. to be ‘Achieved’)
(b) Net Present Value (NPV) of 124.32% (as ROCE), from the investment (to be ‘Achieved’) (c) Net Present Value (NPV) of 22.00% (as Average Annual Return) (i.e. to be ‘Achieved’) (d) Internal Rate of Return (IRR) of 92.45% from the investment (i.e. to be ‘Achieved’).

Investment Portfolio 
Strategic Financial Modelling Consultants can raise Five Hundred Thousand Pounds (£500,000) from Sterling Bank PLC, to invest in promising JVs. The Initial Investment required and Cost of Capital for each JV differs, as detailed in the Schedule of Prospective JV Partners in the Spreadsheet. No additional funds can be secured by SPMC for such JVs. 


 Market Analysis/Data: 
.    (a)  Projected Market Size: Specific details have been provided in the accompanying Spreadsheet Template. These are the most optimistic estimates. 

.    (b)  Projected Market Growth rate: Details of estimated increase (by location) are provided in the accompanying Spreadsheet Template. 

.    (c)  Projected Market Share (Brand Rivals): Each Franchisee will control the entire market space in each location but new franchises will be granted by rival brand competitors. For each new competitor entering the market in each location, a percent of market share will be lost per year. Details (by location) are provided in the Spreadsheet Template, including the related probability that new competitors will enter each market each year. 

.    (d)  Projected Selling Price: Details of estimate increases (by location) are provided in the accompanying Spreadsheet Template. 

.    (e)  Projected Costs: Details of estimate increases (by location) are provided in the accompanying Spreadsheet Template. 

 
 Assumptions:

(a) All transactions and estimates are assumed to be real cash flows.

(b) All cash flows occur evenly throughout each year and over six (6) years only.

(c) All estimates were derived, after detailed market research, by SPMC’s Research Team.
(d) Each Project has a six (6) years lifespan, during which the fixed cost remains unchanged .
 
Your Tasks: 
You are a Financial Analyst at Strategic Financial Modelling Consultants, responsible for evaluating projects. Your analysis must be concluded for distribution to your other Team Members, within three (3) hours of receiving ‘Market Analysis/Data’ from the SPMC Market Intelligence Team. You must also deliver your Analytical Report to Sterling Bank PLC for appraisal and approval within 7 days thereafter. To evaluate each project’s financial viability and suitability for inclusion into SPMC’s Investment Portfolio over six (6) years; you should: 
1.    Create a financial model for each investment opportunity, using MS Excel [10 Marks] 

2.    Using MS Excel, simulate each proposal (include these worksheets) [40 Marks] 
.    (a)  A ‘+Scenario Manager’ for each location (use details provided above) 
[15 Marks] 

.    (b)  A ‘+Goal Seek’ for each location that seeks to achieve the benchmark/threshold NPV of £1,000,000 NPV only, by determining how many products need to be sold in each location to meet this target. (i.e. 2 marks per location) 

(c) A ‘+ScenarioSummary’ for all locations 

(a) Determine the Correlation between the: ‘Investment Capital’, ‘Net Present Value (NPV) - Amount (£)’, and ‘Total Market Size for Product (Year 1)‘ for each of the following locations [Template contains a Sheet Titled ‘+Correlation’ for this purpose]Oxford and Brighton Franchises London and Bangor Franchises Reading and Glasgow
London and Reading 

Use MS Word to prepare an Analytical Report for review by Sterling Bank Your Analytical Report should include the followings: 
(a)  Discussion of uncertain economic/financial factors to be considered 
[05 Marks]
(b)  Discuss limitations of MS Excel that can better resolve 
( Please mention this: especially when you look at the no. of potential customers enter each year, the excel shows the number with decimal which is weakness of excel when compare with @Risk software. Another thing is when you do scenario manager, you have to add each city manually into scenario manager and which can lead to error and time consuming). [05 Marks] 
(c)  Explanation your observations from your analysis (by location) 
[10 Marks]
(d)  Explanation of your outcomes/results obtained from your    evaluation 
[10 Marks]
(e)  Justification for your location selection/non-selection 
[20 Marks]

BEAM046 Financial Modelling

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

27 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com boasts a team of talented and highly skilled coursework writers based in UK who assist students in the best possible manner. Students, who need coursework help, find our services fulfilling and effective because we provide high quality help at affordable price. So, students who often search can someone do my coursework cheap or can experts Write my coursework for cheap get perfect solution at MyAssignmenthelp.com. They pay for best coursework and get it from us.

More BEAM046 BEAM046 Financial Modelling: Questions & Answers

Q
icon

We aren't endorsed by this University

BE312 Quantitative Foundations of Finance

Individual Coursework Question 1: Compare and contrast a person who is risk averse to a person who is a risk lover. Provide, with an example to illustrate your understanding, an economic explanation of when an individual is risk averse or risk loving. Question 2: Define maximum expected utility for ...

View Answer
Q

Management

Evaluate an agribusiness company and the industry it operates in. What is the economic and competitive environment the company is influenced by? How might the industry structure influence the financial management of the company? What are the threats and opportunities to the business model? What driv ...

View Answer
Q

ACC701 Financial Accounting

Discuss, analyse and research ethics and governance of the above case . Your paper should address the stakeholders, ethics, governance, changing depreciation methods and suggestions for Andrea to ensure complinace with the AASB116.  Refer to the Subject Outline for assignment requirements, page ...

View Answer
Q

Management

Paper: In 3 pages must include introduction and conclusions at the end, good grammar using American English spelling. Academic writing is a must with references. Papers should be double spaced in Times New Roman font which is no greater than 12 points in size. In this paper, please discuss the follo ...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?