程序代写案例-M23367
时间:2022-05-14
Business and Decision Making
M23367

Coursework: 50% of the total mark.
Due date: 13 May 2022 at 23:55.
The coursework should be uploaded to Moodle, to the Coursework Dropbox.
Instructions: There are 4 components of this coursework: Appraisal Methods, CVP Analysis,
Budgeting and Control, and Ratio Analysis. In this coursework, you will be expected to perform
calculations and also to give explanations and recommendations based on your calculations. You
should complete all the coursework on PowerPoint slides as if you were giving a presentation. The
maximum quantity of slides to be used are 10 and a recommended allocation follows:
Main presentation slides: 6 slides
Supporting slides with numerical data: 3 slides
Bibliography: 1 slide
Submission: The filename submitted should be of the following format: Student_Number
Please ensure you adequately back up your work at all times to avoid any loss of work or corruption
of computer files. Do not wait to the last minute to hand it the work. You should plan to hand in
your work at least a full day before it is due.
If there is a problem with Moodle at the time of submission, students should email their coursework
to submissions@port.ac.uk with the following details:
• Student Number
• Module Name / Module number
• Course name that you are studying
• Screenshot of the error
Plagiarism: Students must avoid plagiarism in all assessments. The University Regulations describe
plagiarism as:
‘the incorporation by a student in work for assessment of material which is not their
own, in the sense that all or a substantial part of the work has been copied without
any adequate attempt at attribution, or has been incorporated as if it were the
student’s own when in fact it is wholly or substantially the work of another person
or persons.’
Any student suspected of plagiarising will be referred to the BaL Student Assessment and
Assessment Regulations Lead and an Academic Misconduct Hearing will be arranged.
Referencing requirements: Students must reference all sources using the APA 7th Edition. Guidance
on this method of referencing can be found at https://library.port.ac.uk/referencing. Reference
should be made to the primary source, except when the primary source can no longer be
obtained. Poor citation of sources will result in a loss of marks.
Referencing is required to give intellectual credit to your source, help your reader recover your
source easily and to avoid being accused of plagiarism.
Students are reminded that the University will not tolerate academic dishonesty in any form. This
is cheating.
Feedback: Marking will be done in accordance with the guidance set out in the University of
Portsmouth grading criteria for UG level 5. Marks for the coursework assessment are due for release
within 20 working days after the submission deadline date. If there is any delay in the processing of
marks, the module coordinator will communicate this to you.





















Section I. Appraisal Methods
Marine Spray Clothing are a wholesaler and provide clothing and sailing accessories to the Marine
industry. Business has been strong over the last few years, and as a result, Marine has excessive cash
reserves. They are also in negotiations with a large new customer to provide all their sailing
requirements over the next 5 years. Marine is currently operating at full capacity and in order to take
on the new business, Marine will need room to expand. The business next door has recently moved
giving Marine an opportunity to substantially expand their operations and warehouse premises.
Marine will take on the remainder of the 5-year lease of the new warehouse premises. The initial
investment will include £2m in repairs and renewals to bring the premises up to standard and an
additional £8 million in equipment. The entire investment of £10 million is expected to have a useful
life of 5 years and a residual value of £2 million. Any depreciation should be calculated on a straight-
line basis.
Marine has estimated future cash inflows and outflows over the following 5 years of the project as
follows:
Yr Inflow Outflow
1 3,000,000 -2,000,000
2 5,000,000 -3,000,000
3 8,000,000 -2,000,000
4 7,000,000 -2,000,000
5 3,000,000 -1,000,000

Marine’s cost of capital is 7%.
The Finance Director has been asked by the Board of Directors to appraise the viability and determine
the future cashflows and profitability generating by the investment.
She has been asked to give a presentation to the Board using three appraisal methods:
• Discounted Payback
• ARR
• NPV
Required:
A. Calculate the Discounted Payback. (6 marks)

B. Calculate the ARR. (6 marks)

C. Calculate the NPV. (6 marks)

D. You will also need to explain the results of the three appraisal methods and advise the board on if
they should take up the contract and why. Keep in mind that the board are all mariners and know
a lot of about the marine business but have no finance or accounting experience. As a result, you
will need to explain to them all aspects of your analysis and figures. You should also perform some
research with references. (12 marks)


Total Marks 30
Section II. Breakeven & Margin of Safety
Marine has been approached by a large organisation for a contract to supply lifejackets for one year.
The Finance Director for Marine believes they have three options to maximise the profit from this
contract.
Option 1:
They expect to sell 25,000 lifejackets at the current selling price of £70 per lifejacket. Their material
cost is currently £35 per lifejacket and the labour cost is £20 per lifejacket. The fixed cost is £250,000.
Option 2:
Marine believes that with a decrease in the selling price of 15%, the customer may increase their
demand by 20%. With the increase in the sales volume, Marine believes they could negotiate a
reduction of £10 in the material cost per lifejacket, although labour cost would stay the same.
Option 3:
Invest in a new machine costing £60,000. The new machine would decrease the labour cost by £5 per
lifejacket. The selling price would remain at 15% discount and material cost would remain the same
at the original cost of £35 per lifejacket as shown in Option 1.
The target profit in all options is £150,000.
Required:
1) Define and explain breakeven and margin of safety, using diagrams if necessary. (3 marks)
2) Calculate the breakeven in units on all 3 options. (9 marks)
3) Calculate margin of safety in units on all 3 options. (3 marks)
4) Calculate the required sales in units for the target profit on all 3 options. (3 marks)
5) Recommend and explain which option Marine should consider. (2 marks)

You should also perform some research with references.

Total Marks 20










Section III. Budgeting and Control
The Board of Directors have asked the Finance Director how Budget Controls would enable the
business to continue growing. The Finance Director will need to critically evaluate the advantages and
disadvantages of Budgeting.
Explain and evaluate the advantages (10 marks) and disadvantages (10 marks) of Budgeting as a
control mechanism.
You should also perform some research with references.

Total Marks 20

Section IV. Financial Ratios – Calculation & Interpretation
Six months has now past, and Marine has experienced continued growth and expansion which has
attracted the attention of Big Liner PLC, a global manufacturer and retailer of sailing clothing and
accessories who are looking for potential acquisitions. They have made some approaches to the Board
of Directors and have asked for some information in financial results and analysis. The Board have
asked the Finance Director to produce the Financial Statements (below) and has asked her to carry
out some Variance Analysis including the following ratios:
Profitability:
• Gross Profit Margin
• Operating Profit Margin
• Return of Equity

Liquidity:
• Current Ratio
• Quick acid test

Investment:
• Gearing Ratio
• Interest Cover

Efficiency:
• Inventory Days
• Receivable Days
• Payable Days

Using 5 of these ratios (1 each from Profitability, Liquidity, and Investment; 2 from Efficiency) explain
the ratio, what it means and what it is measuring (5 marks), calculate the ratio for both years (10
marks) and discuss the results/fluctuations in the two years in relation the company (5 marks). You
should also perform some research with references.

Total Marks 20
Income Statement
2021 2020

Sales £890m £560m
Cost of sales £(750)m £(448)m
Gross profit £140m £112m

Operating expenses £(69)m £(60)m
Operating profit £71m £52m

Interest payable £(9)m £(4)m
Profit after interest £62m £48m

Statement of Financial Position
2021 2020

Non-Current Assets £124m £106m

Current assets
Inventories £59m £45m
Trade receivables £48m £51m
Cash at bank £12m £2m
£119m £98m

Total assets £243m £204m

Equity and liabilities
Share capital £100m £100m
Retained profits £88m £26m
£188m £126m

Current liabilities
Trade payables £50m £55m
£50m £55m

Non-Current liabilities
Bank Loan £5m £23m
£5m £23m

Total equity and liabilities £243m £204m


Organisation and layout of Presentation Slides: 4 Marks
Bibliography and References: 6 marks

Total Coursework Marks 100


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