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ACCT702 Case analysis and submission Wonder Kidz Case Guldance (10% weight) You are a team of financial consultants hired to assist the client, Mr. Bansal.

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ACCT702 Case analysis and submission Wonder Kidz Case Guldance (10% weight) You are a team of financial consultants hired to assist the client, Mr. Bansal. Instructions 1. Read the case individually and jot down your notes. 2. Discuss the case with your group. 3. Evaluate the proposed project for Mr. Bansal using the capital budgeting techniques (including IRR) you have learnt in the course so far (Chapter 8 NPV and other investment criteria). Assume the opportunity cost of capital is 12% (that is, 15% net of 20% tax). 4. Also, include a sensitivity analysis if Mr. Bansal decides to provide a fee reduction in the expected revenue for 5 years as follows: Note: Use the following revised expected revenue structure with the fee reduction (all other assumptions remain the same as given in Exhibit 3). Fees are in Indian Rupees Year 1 Year 2 Years 3-5 (per year) Total strength 35 50 80 New enrolments 35 25 40 Returning 0 25 40 Fees - New students (one time and 17,500 18,000 18,500 annual ) Fees - Returning students (annual) 15,500 16,000 5. In 700-800, words discuss whether your group feels the project is financially viable, supported by your group's calculation (s) and discussion. Make a recommendation to the client based on your group's analysis in Steps 1-4. Please submit one Word document

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