FINC20018 T3 2017 Assessment 2_Final.pdf
FINC20018 T3 2017: Assessment 2 Page | 1 GROUP CASE STUDY ASSIGNMENT Due week 10 26 January 2018 at 5pm This guide is split into 5 Sections. 1. What is a group? 2. How you will be graded? 3. Submission details 4. Assignment case study questions 5. Marking rubric 6. Mark sheet 7. APA Quick Reference Guide Please note: For any instructions highlighted in yellow in this assessment task sheet you fail to follow you will lose 2/100 marks (1%) each time. 1. What is a Group? • For campus students, a group means 1 or 2 students. For distant learning (FLEX) students, while a group of 1 is likely to be more practical groups of 2 are optional. • Important: Students working as a group, only one member of the group will submit the assignment online by uploading it in Moodle or your will lose marks for not following this instruction. • Please make sure you have formed groups by the end of week 2. Once you have formed a group, please YOU MUST post the names of your group members you are working with on Moodle Discussion Forum by the end of week 2. Once you have decided on a group member you cannot withdraw from the group. This is to ensure your group member does not pull out from your group at the last minute should your relationship turn bad, leaving you with a problem of having to complete the assessment on your own with no time to do so. 2. How you will be graded? • Your report will be graded according to its overall quality on a several criteria that are meant to cumulatively reflect the overall standard of your assignment. Marks are awarded for: • Correct answers to calculation questions that include timelines, showing workings, well- presented tables, accurate calculations, worksheets and related formulae. • Correct answers to theory questions written in your own words. Show initiative and support your answers with interesting references to contemporary issues from at least 15 peer-reviewed publications • Proper and accurate referencing of all content including figures, tables and narrative using APA Reference system. There is a guide of the APA style in the Moodle site in the Assessments Section. Please use it so that you do not lose marks. • MAKE SURE YOU READ the marking criteria (Rubric) and follow its requirements. FINC20018 T3 2017: Assessment 2 Page | 2 • All supporting materials must be properly referenced using APA in-text referencing formats. Learn how to do in-text referencing as well as Referencing at the end CORRECTLY to avoid losing marks. • Response to case study must be in report format and include at least, title, your names and student numbers, an introduction, body with headings and sub-headings, recommendations and a conclusion. Learn how to write a report. I have provided a link on report writing in Moodle or seek help from the student learning services. • Presentation: Your report including appendices and reference list fonts must be either Arial or Calibri or Times Roman 12 point and 1.5 spacing for narrative, 16 points bold for major headings and 14 points bold for sub-headings. Inclusion of diagrams and tables to support the response is strongly encouraged. However, photocopied, copied/pasted jpeg. .jpg files and scanned graphs from books, articles or websites are not acceptable. It is preferable to hand-draw a graph then scan it to insert in your file or you will lose marks. Issues that will impact on your marks include: 1. Where copying from other sources results in high % similarity, marks will be deducted as shown on the mark-sheet. Therefore, proper use of in-text referencing is important. Avoid direct quotes. Turnitin will be used to check % similarity. NEVER copy the questions from the textbook as this will increase your % similarity. Under extreme circumstances where high % similarity indicates copying from written works of other students in CQU, other universities or any other institutions world-wide, the assignment may be reviewed by the academic misconduct board. If percentage similarity exceeds 20%, marks will be deducted based on a progressive scale as determined by the course co-ordinator. See the recommendations on FINC20018's Moodle site regarding how to avoid high similarity and our expectations to avoid losing marks or facing the academic misconduct board. 2. Penalty for late submission is (2.5/50) 5% per calendar day including Saturday and Sunday 3. Penalty of 1/50 (2%) marks applies for not only submitting one assessment per group and not submitting a separate marksheet file as highlighted in yellow above 4. Failing to follow the instructions in this task sheet will lose you 1/50 marks (2%) References TITMAN, S., MARTIN, T., KEOWN, A. J. & MARTIN, J. D. 2016. Financial management: Principles and Applications, Melbourne, Pearson Australia 3. Submission Details • The Marksheet of this assignment and your Assessment answers MUST be submitted as two separate documents or your will lose marks for not following this instruction. Therefore, you will submit two separate files: FINC20018 T3 2017: Assessment 2 Page | 3 1. One file will be the Marksheet [Please indicate your names and student numbers clearly on the marksheet] 2. The second file Assessment 1 [Please indicate your names and student numbers clearly in the TITLE PAGE of your Assessment 2] • This online submission MUST BE submitted as two separate word documents. PDF submissions or any other format will not be accepted. Report format must have a minimum of: • Title page with your names • Introduction • Body with appropriate headings and sub-headings • Recommendations • Conclusion Please look at the example of an Assessment 2 assignment on Moodle to show you our expectations for this Assessment 2. The Task You are required to present answers in a single CORRECT report format of no more than 2,000 words to a case study where you are the financial manager of CQU Printers who must make a mutually exclusive investment decision. This case study mainly focusses on work completed in weeks 7 and 8. All questions are based on the concepts in your prescribed textbook, Managerial Finance – Principles and Applications by Titman et al. (2016). However, you MUST use other references. The case tests your understanding of the capital budgeting techniques as well as the qualitative aspects of risk and return decision making. • Word count is 2,000 words maximum. This word limit would exclude report title page, table of contents, reference list, appendix and any other supplementary material or attachments. MINIMUM number of references: 15 references. The number of references outline here includes academic references. Academic references must be peer-reviewed. It excludes sources such as newspapers, magazines, and internet source. • Please make sure you look at the resources placed in FINC20018 Moodle to help you complete your assessment as instructed. This word limit and number of reference is based on present recommended School of Business and Law policy for post-graduate students. FINC20018 T3 2017: Assessment 2 Page | 4 4. Assessment Case Study Questions CQU Printers is a medium-sized commercial printer of promotional advertising brochures, booklets and direct mail. The firm's major clients are Australian-based advertising agencies. Most jobs have production runs of over $50,000 units. It has not been able to compete with large printing companies, because of its existing older, inefficient printers. The firm is currently having problems cost effectively meeting run length requirements as well as meeting quality standards. The general manager has proposed the purchase of two large colour printers designed for high quality runs. The purchase of a new printer would enable CQU Printers to reduce its cost of labour and therefore the price to the client, putting the firm in a more competitive position. The key characteristic of the old presses is summarised below. Old Printer: Originally purchased three years ago at an installed cost of $400,000, depreciated using a 5-year straight line method. The old printer has a remaining economic life of five years. IT can be sold today for $420,000 before taxes. If it is retained it can be sold for $150,000 before taxes at the end of five years. Book value is currently $116,000 and at the end of year 5 it will be $0. New printer options for CQU Printers comprise either Printer A or Printer B. Printer A: This highly automated printer can be purchased for $830,000 and will require $40,000 in installation costs. It will be depreciated using a five-year straight-line method. At the end of five years the machine can be sold for $400,000 before taxes with a book value of $43,500. If this machine is acquired, it is anticipated that the following current account changes would result: Cash $ 25,400 Accounts Receivable $ 120,000 Inventories -$ 20,000 Accounts payable $ 35,000 Printer B: This printer is not as sophisticated as Printer A. It costs $640,000 and requires $20,000 in installation costs. It will be depreciated using a five-year straight-line method. At the end of five years it can be sold for $330,000 before tax with a book value of $33,000. Acquisition of this press will have no effect on the firm's net working capital investment. The firm is subject to a 30% tax rate on income and full capital gains on sale of equipment. The firm's cost of capital is 14 percent per annum. The firm estimates that its profits before depreciation and taxes with the old printer and with printers' A or B for each of the five years would be shown as follows: Profits before depreciation and taxes for CQU Printers Year Old printer Printer A Printer B 1 $