Free Essay

Http: //Www.Justanswer.Com/Finance/1z4y2-Globalizing-Cost-Capital-Capital-Budgeting-Aes.Html

In: Business and Management

Submitted By javed367
Words 1208
Pages 5
Research Reflection Report (Assignment Format) – Guidelines for the Report

These notes are designed to help you deliver and conduct a successful Research Reflection Report.

The Research Reflection Report is a major piece of work and is designed to support your own self-critical consideration of your research and related business skills and demonstrate that you can:-

• Reflect and comment critically on what you have learnt during the programme and during the carrying out of your research activities

• Carefully consider the research which you have carried out and critically comment on this

• Discuss the relationship of your research, research sources and evidence, and researching activities to the production of your Major Project

• Critically comment on the key areas, examples, sources of your research

• Consider the relationship of your research, and researching, to both your Major Project and possible future employment opportunities

Your Research Reflection Report is not only an academic exercise but also a piece of work which you may wish to use in future employment contexts to demonstrate your ability to consider the importance of research and researching to:-

• business planning,

• business success,

• organisational contexts

• your own academic and business skills and the contribution which you can make to an organisation as a result of developing these skills

The Research Reflection Report therefore aims to support the student’s ability to be self critical about their research. It also develops the students understanding and application of the core concepts of business and academic skills while developing their ability to perform more effectively within organisations in a real world context. The Report therefore encourages reflection on:-

1) Research Processes

2) The research methodologies which you have considered and applied

3) Research and researching as a problem solving process used by you as a student,

4) The identification and discussion of your key learning points which could be applied to other situations.

5) The relationship of research and your major project to your professional development opportunities and career development intensions

Completion of the Report

• The contents of the report are given in a template format (see pages 3&4)

• You may treat this report as a self critical evaluation of your researching experience or “Learning Diary” or as a final summing up of your experiences while carrying out the Research and the Major Project in which you have been involved. It is advisable not to leave the completion of the Report until the last minute.

• Above all this Report should not be simply descriptive – it should be a self critical summary of your learning experiences. You should adopt a ‘critical’ viewpoint – what seems to work, what is less successful – and why? Discuss the examples of best /good/interesting research practice which you have come across. Consider how research examples/models can be usefully used in business situations– and be adapted to suit your future workplace/ academic environment.

• You should attempt to respond to all template sections

• You should keep to the overall word limit of 4000 words maximum for the whole Report.

Things to think about when completing your Research Reflective Report:-

The nature of your research and your Major Project
Why is it being done; why are you working on this subject and how significant is it to you and to future employers?

Plan of your schedules
Have you managed effectively your research and Major Project schedules and are they logical?

What resources (i.e. people, evidence, references, and ideas) have you used and how are you using these? Why are they important?

Are the methods which you have used specified clearly, and are they sufficiently rigorous? Are data/evidence/literature sources specified and available? Are you conducting the research and the Major Project in a professional manner? What analytical frameworks will be used to make sense of the work? Are these appropriate?

Support and Barrier Issues
Have these been thought through by you? How any barriers to be/being overcome?

Anticipated Benefits to you and to a future employment organisation
What are they? – Knowledge? : Ideas? : Learning Experience? : Efficiency? : Effectiveness? Financial?: Organisational?: Skills?

How will the project satisfy you?
How will the work contribute to your personal development? How wide a range of skills and knowledge does it use from your programme? Will it demonstrate that you have an understanding of your programme subject areas?

Major Project Conclusions: The conclusions which you are forming for your Major Project – are they based on rigorous reasoning and argument?

Report Writing Skills
Write your reflections and critical views clearly and simply.



|(should contain the details given below) | |Marks |
| |Please type your responses in the spaces below: |available |
|Research Methods & Processes |Click here to enter text. | |
|How and why have you chosen/decided on the | | |
|research methods and processes which you are | | |
|using/have used for the development of your | |15 |
|Major Project? | | |
|How would you describe these to: | | |
|1) a reader of your Major Project and/or | | |
|2) a future employer | | |
|(max. 550 words) | | |
|Literature & sources |Click here to enter text. | |
|1) What are the most important | | |
|theories/literature sources /evidence sources| |15 |
|which you are using to justify your research | | |
|and your Major Project? | | |
|2) Why are these sources important and | | |
|fundamental to your work? | | |
|(max. 550 words) | | |
|Your Knowledge |Click here to enter text | |
|What key areas of knowledge have you gained | | |
|from undertaking your research and the Major | |10 |
|Project? | | |
|Indicate why these are so important to you? | | |
| | | |
|(max. 400 words) | | |
|Your Learning |Click here to enter text | |
|What are the most important aspects/examples | | |
|of learning and/or skills which you have | |10 |
|gained from: | | |
|(1) undertaking the MBA programme, | | |
|(2) following through your research, and | | |
|(3) applying your knowledge and what you have| | |
|learnt in your Major Project | | |
|(max. 400 words) | | |
|Critical Thinking and your ideas |Click here to enter text | |
|In carrying out your research, your analysis,| | |
|your evaluation of evidence, and in | |10 |
|identifying or proposing conclusions, what | | |
|has been the most important discovery, or | | |
|piece of evidence, or theory, or viewpoint, | | |
|or critical idea, or critical addition to | | |
|your knowledge, or other item of importance | | |
|and why? | | |
|(max. 400 words) | | |
|Barriers met |Click here to enter text | |
|What were the main difficulties and barriers | | |
|which you were faced with in: | |10 |
|(1) undertaking your research, and | | |
|(2) completing your Major project | | |
|(max. 400 words) | | |
|Your Professional Development |Click here to enter text | |
|What are the most important business and/or | |10 |
|management skill(s) or academic idea(s) or | | |
|lesson(s) which you have learnt from | | |
|undertaking your research and your Major | | |
|Project – and why? | | |
|(400 words) | | |
|Objectives |Click here to enter text | |
|Based on your research and the work which you| |10 |
|have done in the MBA Programme and its use in| | |
|your Major Project, what were and how far | | |
|have the objectives of your major project | | |
|been achieved? | | |
|(max. 450 words) | | |
|Findings & outcomes |Click here to enter text | |
|How useful and/or feasible are the findings, | |10 |
|recommendations, conclusions, or outcomes of | | |
|your Major Project to you and/or to a future | | |
|Employer? | | |
|You must justify your answer with specific | | |
|examples. | | |
|(max. 450 words) | | |
|TOTAL | | |
| | |100 |…...

Similar Documents

Premium Essay

Capital Budgeting

...INTRODUCTION Capital budgeting plays an important role in a firm’s financial management, the selection of a project is of great importance because it required a very large capital expenditure which will have a significant impact on the financial performance of the firm. Therefore a mistake in capital budgeting process by a firm will cost them a long period of time. Capital budgeting can be defined or seen as a designed process which involves management of available resources to select long time investments that will generate high return on the investment of those resources, Brealey, R. A et al (2006). Companies are into businesses with the main aim of making profit, therefore, it is vital for companies to know how to evaluate their expenditure. It is very important for a company to know the present value of the future investment and the time period it will take to mature before investing in a project. Examples of investment decision are purchase of new equipment or acquisition of industrial building. 2.0 ANALYSIS AND DECISION MAKING OF COVERED INTEREST ABITRAGE This can be described as an investment strategy which involves the buying of financial instrument dominated in a foreign currency by an investor and also the selling of a forward contract in his base currency in order to hedges his foreign exchange risk, Bodie, Z. and Kane, A. (2007). Based on the covered interest arbitrage i agree that there will be no difference if HW Technologies raise the capital......

Words: 2576 - Pages: 11

Premium Essay

Capital Budgeting

...wertyuiopasdfghjklzxcvbnmqwwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm Capital Budgeting What is it? 3/11/2012 Daniel Williams | To be a successful sport organization, you must be good at capital budgeting. To understand capital budgeting, I feel it is best to take it apart and examine it. Capital is the long-term funding that is necessary for the acquisition of fixed assets. Budgeting is keeping track of your finances and keeping to them to make the company work. When put together, you have long term funding that needs to be budgeted and kept track of. The main goal of capital budgeting is to find and select investment opportunities that are worth more than they cost. If they end up costing more than they are worth, chances are your losing money and run the risk of having to sell or close. Capital budgeting is similar to personal budgeting because they are both dealing with finances. Capital budgeting usually deals with much more money and many more ways to earn money. Because of this, you have to be extra cautious to keep track of it because it could cause a headache if you don’t. Personal budgeting usually consists of less money and doesn’t have so many ways of bringing in money. For most people, they have to budget what they earn from working to keep their finances straight. Besides the amount of money, they are actually very similar. It is important for sports organizations to track their cash......

Words: 380 - Pages: 2

Premium Essay

The Cost of Capital, Corporation Finance and the of Investmient

...THE COST OF CAPITAL, CORPORATION FINANCE AND THE OF INVESTMIENT In the business world we make investment for two main reasons or either of them that can be for the maximization of our profite from a business or it can be for the maximaization of the market value of the assets. Businesses generally aquire the assets if the perceives that the particular asset can help in increasing the profit of the organisation. According to the theory the acquisition of the asset can help to increase the profit only if the returns arising due to that asset are more than the interest costs arising due to that asset. On the individual level when we are cosidering the purchase of any asset we should also consider the risk factor associated with that asset. Profit maximization and value maximization they both have more or less same meanings and implications. But if the case is of uncertainity then the profit maximization has no meanings, it remains meaningless for the investors. When the situation is uncertain then in that case the market value maximization becomes the basis for the theory of investment, if this notion is kept in mind then every time when we are going to make a decision to invest or not we should simply keep one thing in our mind that can be the basis of the decision, that is if we aquire the particular asset will it help to increase the value of the firm’s share? If in response of this question we comes on this point that yes it will result in increase in the value of the......

Words: 300 - Pages: 2

Premium Essay

Capital Budgeting

...Running head: Portfolio Project- Capital Budgeting Page 1 Capital Budgeting April Sutton July 12, 2013 FINANCIAL MANAGEMENT 3004 Instructor Nickey Turner Walden University   Running head: Portfolio Project-Capital Budgeting Page 2 INTRODUCTION Capital Budgeting is defined as the process of planning and managing a firm’s long-term investments (Ross, Westerfield & Jordan. 2013). The question of what long term investment should be made is the first step of answering this question. The issues that arise with the asking of this question will be detailed in this paper. Capital Budgeting techniques include the Payback Rule, IRR, NPV, and the Profitability Index. PAYBACK RULE The payback method indicates that an investment is acceptable if its calculated payback is less than some prescribed number of years. The payback method does not consider the present value of cash flows. Under this method, an investment project is accepted or rejected on the basis of payback period. Payback period means the period of time that a project requires to recover the money invested in it ( payback period of a project is expressed in years and is computed using the following formula: Formula of payback period: According to this method, the project that promises a quick recovery of initial investment is considered desirable. If the payback period of a project computed by the above formula is shorter than or equal to the......

Words: 1553 - Pages: 7

Premium Essay

Capital Budgeting

...Capital Budgeting Case One of the most important decisions made by management is Capital Budgeting. Capital Budgeting is a “process of identifying, analyzing, selecting, and implementing investment projects with returns that are expected to span over more than a year” (Okwuduche, 2010, pg. 1). The main objective is to select investments that will benefit the company. This student was informed by management that they are thinking about acquiring a corporation but do not want to spend more than $250,000. This student will analyze two different companies that cost $250,000 each to determine which company is the best investment. Overview of Net Present Value One method used to determine which corporation to acquire is the net present value (NPV). The NPV “of an investment proposal is equal to the present value of its annual free cash flows less the investment cash outflow to purchase the asset and put it in operating order” (Keown, 2014, pg. 310). In other words, it is the cash inflow that consists of “incremental revenues, reduction of costs, and release of working capital compared to the cash outflows that consists of the initial investment, repairs, maintenance, and operating costs of an asset” (Accounting For Management, 2012, pg. 1). If the NPV value is positive, the asset should be acquired. Overview of Internal Rate of Return Another method used to determine which corporation to acquire is the internal rate of return (IRR). The IRR is “the discount rate......

Words: 1049 - Pages: 5

Premium Essay

Capital Budgeting

...Paper Elizabeth Scott BBA/3301 January 13, 2013 Nchacha Etta Capital Budgeting When evaluating capital budgeting projects, the internal rate of return (IRR) and the net present value (NPV) methods are two major approaches used. IRR and NPV are the most widely used in capital budgeting. One other approach is the profitability index (PI) is essentially a variation on the NPV method. A question might be if these always give the same solutions to the problems. The answer here is no. This paper will explore these different capital budgeting techniques. This paper will also compare and contrast each of the techniques with an emphasis on comparative strengths and weaknesses. The net present value (NPV) applies to the analysis of projects. Calculate the present value of each of a project’s cash flows and add them together, using the net present value technique. This gives the result of the net present value of the project, usually referred to as the NPV (Lasher, 2011). A project’s net present value is the new effect that the undertaking is expected to have on the value of the firm. A capital spending program which maximizes the NPV of projects undertaken will contribute to maximizing shareholder wealth. According to Lasher (2011), it is the direct link to shareholder wealth maximization that makes MPV the most theoretically correct capital budgeting technique. The internal rate of return, instead of comparing present value dollar......

Words: 920 - Pages: 4

Premium Essay

Capital Budgeting

...Capital Budgeting Introduction Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing owner wealth. A firm using capital budgeting, their goal is to see if there fixed income will cover itself for profit. Fixed incomes are things such as land, plant and equipment. When a firm using a machine to produce its good or service. They most of the time what the machine to produce the amount that they paid for the machine and more. The capital expenditure is the outlay of fund that a firm expects to produce and benefit with in a one year. The Capital Budgeting Process When approaching the problem of trying to the measure capital budgeting. The first step in capital budgeting is the Proposal generation. The proposals are made at all levels within a business organization and are reviewed by finance personal. The Second step in the process in the review and analysis. The formal review and analysis is performed to assess the appropriateness of proposals and evaluate their economic viability. Once the analysis is complete, a summary report is summated to decision makers. The third step in the process will be the Decision making. Firms typically delegate capital expenditure decision making on the basis of dollar limits. The board of directors must authorize expenditures beyond a certain amount. Often plant manager are given authority to make decisions necessary to keep the production line is moving....

Words: 2607 - Pages: 11

Premium Essay

Capital Budgeting

...Capital Budgeting By Joan Shoueka Capital Budgeting is defined in accounting and finance as “the planning of long-term corporate financial projects relating to investments funded through and affecting the firm's capital structure (Wikipedia, 2014).” It allocates resources for major capital or investment expenditures. Creating and implementing a budget is crucial to any business or organization for many reasons. One reason is because “it creates a structured step by step process that enables a company to develop and formulate long-term strategic goals, seek out new investment projects, estimate and forecast future cash flows, facilitate the transfer of information & lastly, monitor and control expenditures (Investopedia, 2014).” “Preparing a capital budget is also necessary in order to increase profits and minimize costs. Most businesses and organizations typically plan a budget for a 12-month period, which allows management to take a look at a bigger picture. A capital budget differs from a short-term budget in that it takes a look at long-term investments, examining the purchase or upgrade of fixed assets such as buildings, machinery and equipment (, 2014).” There are also many reasons to make hefty investments. One important intention is that it helps to expand the level of operations for a business or company. A growing company often needs to acquire new fixed assets in order to produce work in a timely fashion. Then as the company expands......

Words: 1122 - Pages: 5

Premium Essay

Capital Budgeting

...Part A “Capital budgeting over the years has become a sophisticated process for the finance officer. The different methods available to the finance officer have increased and become more accurate and centred upon the goal of maximizing wealth. However has there been an increase in the usage of these new methods or are decision makers still using the easier methods?” Capital budgeting is a tool management use to make investment decisions. Despite the pitfalls pointed out in Yee-Ching Lilian Chan’s article “Use of capital budgeting techniques and an analytic approach to capital investment decisions in Canadian Municipal Governments”, which includes overemphasis on the quantifiable aspects of capital projects, random cut offs on the timing and the amount of cash flows, Unrealistic discount rates or IRR assumptions. Methods such as profitability index, internal rate of return, breakeven, payback period and net present value are all discounted cash flows which are commonly used in practice. In 2001 Elijelly, A & Abuldris published an article “ A survey of capital budgeting techniques in the public and private sectors of a less developed country, Sudan” They concluded that most public enterprises in less developed countries, do not apply any capital budgeting methods when making investment decisions. The payback method was the most widely used followed by the Internal rate of return in the private and public sectors that did use capital budgeting techniques. “In contrast to......

Words: 553 - Pages: 3

Premium Essay

Finance Capital Budgeting Memo

...| Finance 390 | Memo To: | Bob Saunders and Maria Gonzalez | From: | Kelly Moeller | cc: | Antar Salim | Date: | April 13, 2015 | Re: | Capital Budgeting | | | After reviewing your case, it appears that you are trying to determine whether Project A or Project B would be more feasible. Project A has an investment of about $2,000,000 on plant, equipment and supplies. During the first year of operations, the sales and cash flows will be low because you plan to sell the product at a cheap price. However, once you have established your product, you plan to raise the price of the chips. Project B is different because you are planning to sell your innovated chips to an established chip maker. The investment for this project is estimated at $2,000,000, but taking into account the sale of the patent for $200,000, the net investment will be $1,800,000. You are planning on a sizable profit the first year, but thereafter, the advancing technology will decrease the demand and decrease the profits. With the help of capital budgeting techniques, I am confident that we can help you decide which project would be the most beneficial over the five years. It appears that you plan to use a required rate of return of 15% for both projects and would ideally like to see a payback period of less than 3.5 years and a discounted payback period of less than 4 years. Capital budgeting deals with the investments in fixed assets, estimate expenditure, outflows and long term......

Words: 1132 - Pages: 5

Premium Essay

Capital Budgeting

...Introduction Capital budgeting decisions are the most important investment decisions made by management. The objective of these decisions is to select investments in real assets that will increase the value of the firm. (Kidwell and Parrino, 2009) Capital budgeting techniques help management systematically analyze potential business opportunities in order to decide which are worth undertaking. (Kidwell and Parrino, 2009) There are many techniques used in the process of capital budgeting. The most common methods are payback, discounted payback period, net present value (NPV), internal rate of return (IRR), accounting rate of return (ARR), and modified internal rate of return (MIRR). This paper will examine each of these techniques, weighing the pros and cons of each, and determining which technique in correct in theory. Payback Period The payback period is not a sophisticated capital budgeting technique. With using the payback period for evaluating projects, a project is accepted if the payback period is below a special threshold. (Kidwell and Parrino, 2009) The payback period is defined as the number of years that it will take a project to recover the initial investment of a company. This period can be easily calculated by adding the years before cost recovery to the remaining cost to recover divided by the cash flow during the year. It is because of the simplicity of this method is the most widely preferred tool for evaluating capital projects. Outside of......

Words: 2430 - Pages: 10

Premium Essay

Capital Budgeting

...Handouts for Corporate Finance 1 Capital Budgeting Introduction A logical prerequisite to the analysis of investment opportunities is the creation of investment opportunities. Unlike the field of investments, where the analyst more or less takes the investment opportunity set as a given, the field of capital budgeting relies on the work of people in the areas of industrial engineering, research and development, and management information systems (among others) for the creation of investment opportunities. As such, it is important to suggest that students keep in mind the importance of creativity in this area, as well as the importance of analytical techniques. Because a project is financially sound, it must be ethically sound, right? Well . . . the question of ethical appropriateness is less frequently discussed in the context of capital budgeting than that of financial appropriateness. Consider the following simple example: The American Association of Colleges and Universities estimates that 10 percent of all college students cheat at some time during their postsecondary education careers. You might pose the ethical question of whether it would be proper for a publishing company to offer a new book How to Cheat: A User's Guide. The company has a cost of capital of 8% and estimates it could sell 10,000 volumes by the end of year one and 5,000 volumes in each of the following two years. The immediate printing costs for the 20,000 volumes would be $20,000. The...

Words: 3456 - Pages: 14

Premium Essay

Capital Budgeting

...Understanding and being able to use capital budgeting techniques and investment appraisal tools is usually a standard requirement for most business degrees. In addition learning such methods will also give one an advantage in a real business situation, in which there is the consideration of significant capital expenditure project. Capital budgeting assists management decisions making on the process of ensuring growth of the organization. The techniques are divided into two types: one, Traditional (non-discounting) that includes pay back method, accounting rate of return (ARR). Two, discounting cash flow that includes net present value (NPV), internal rate of return (IRR) Profitability Index (PI). Before an investment appraisal is conducted, there are a number of points to keep in mind. Whilst the tool presented will give an evaluation of the worth of a project, one should consider that the answer is only a guide. In short, the results of an investment appraisal should be considered in conjunction with both common sense and other qualitative factors such as a business’s overall strategy. Secondly, before an investment appraisal is conducted, one should consider whether or not the project is mutually exclusive. Where a project is mutually exclusive, then only the best project should be selected. Where on the other hand, projects are independent; one may select all projects which give the appropriate return. 1.1 Background of the study Corporate finance involves making......

Words: 7901 - Pages: 32

Premium Essay

Capital Budgeting

...Capital Budgeting March 28, 2016 Capital Budgeting An investment project is part of a business growth initiatives, which may be s deemed acceptable or unacceptable based on the rate of the projects return. Unlike most decisions that an organization makes, a capital budgeting decision requires that two decisions a financial and an investment decision. For a business to decide which project to invest their resources, they must use one or several of the tools design for capital budgeting. Definitions, Analysis, and Interpretation Capital budgeting is used to make calculated informed decisions about acquiring property, businesses, and equipment. It is a process that allows investors to analyze, compare and select the acquisition, which will maximize their wealth. Our team had to analyze a Capital Budgeting Case Study presented in week 6 of Quantitative Reasoning for Business course. In this case, we are to choose only one corporation within the budget of $250,000. As stated in the guidelines, there is a comparison between Company A and company B. This is done by four calculations for both companies. Which are the 5-year projected income statement, a 5-year projected cash flow, net present value (NPV), and the internal rate of return (IRR). Included is the excel spreadsheet with our calculations and graph to decipher easily which company will make the best purchase. The NPV and IRR are two critical numbers that are helpful in determining the purchase. “The NPV tells......

Words: 1046 - Pages: 5

Premium Essay

Capital Budgeting

... Capital Budgeting When people hear the term capital budgeting, they usually focus on the budgeting part of the term rather than the capital portion. Actually, capital is the more important aspect in that it lets us know that we are evaluating a larger expenditure that will be capitalized -- in other words, depreciated over time. Remember, a capital expenditure can be many things -- a large copying machine, an automated assembly line, a building, or the ultimate in capital budgeting -- the acquisition of another entity. What is totally cool about capital budgeting is it allows you to analyze one or more projects so that you can intelligently and strategically make a decision as to which project you wish to acquire or piece of equipment you should procure. There are at least 6 capital budgeting tools that can be used in analyzing a capital expenditure (please note that the text mainly focuses on NPV and IRR) -- Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback Period (PB), Discounted Payback Period (DPB), and Modified Internal Rate of Return (MIRR). Perhaps in a prior finance course, you might have learned how to calculate four of the above six tools -- NPV, IRR, PI, and PB. If not, then it will be new material for you! Now, crunching the numbers might seem by some to be the more crucial part -- and it is indeed very important. However, interpreting and analyzing the answers are just as important. Let's see if we can do this with...

Words: 2404 - Pages: 10