Individual assignment Weighting 100% of the marks for this module This is an individual assignment of 4,000 words (+%10%). The wordcount is for guidance only. Students are required to submit their coursework through Turnitin. Only assessments submitted through Turnitin will be marked. Any other submission including submission to your study centre in hard copy will be treated as a non-submission. Requirements: Part A of the assessment is compulsory for all students with a marking allocation of 50% awarded within this element. Part B of the assessment is compulsory for all students with a marking allocation of 50% awarded within this element. The assignment has been designed to cover the following learning outcomes associated with successful completion of the module: Knowledge: K1. An appreciation of the requirements for financial and management control and the application of project control processes. K2. Critical understanding of the role of accounting information within an organisations decision making. K2. A critical understanding of the relationship between financial resources, time, and quality in achieving project objectives. Skills: S1. The cognitive skills of critical thinking and analysis in showing how the finance function can make a significant contribution to the successful strategic management of an organisations projects. S2. The ability to apply and evaluate tools and techniques associated with financial management and the management of projects. S3. The capability to evaluate projects from a financial, human resource and time related perspective. PART A (50\%) Question 1 KK Knight PLC (25\%) The finance manager of KK Knight PLC is evaluating two mutually exclusive projects with the following cash flows. The company's current return on capital employed is 11 per cent (average investment basis) and the company uses straight-line depreciation over the life of the project i.e. 5 years with a 0 zero residual value, (straight line depreciation means equal monetary amount of depreciation each year). Required: (a) Advise KK Knight PLC which project should be undertaken using: (i) the payback method of investment appraisal (ii) the accounting rate of return (ARR) method of investment appraisal: (iii) the net present value method of investment appraisal. (16\%) (b) Critically assess and discuss the problems that arise for the net present value method of investment appraisal when capital is limited, and explain how such problems may be resolved in practice. (9\%) Question 2 Fischer Circuits Ltd (25\%) Fischer Circuits Lid manufactures electrical components, which are sold to industrial users. The abbreviated financial statements for each of the last two years are as follows: Statements of financial position as at 31December Dividends were paid on ordinary shares of E91,000 and E95,000 in 2019 and 2020 , respectively. Required: Calculate the following financial ratios for both years (using year-end figures for statement of financial position items): Produce a report for the Board of Directors of Fischer Circuits Ltd that evaluates the performance of the company across the two years within the areas of profitability, liquidity, and efficiency. You may wish to suggest methods for improving these key indicators and the overall performance of the business. (9%) Individual assignment Weighting 100% of the marks for this module This is an individual assignment of 4,000 words (+%10%). The wordcount is for guidance only. Students are required to submit their coursework through Turnitin. Only assessments submitted through Turnitin will be marked. Any other submission including submission to your study centre in hard copy will be treated as a non-submission. Requirements: Part A of the assessment is compulsory for all students with a marking allocation of 50% awarded within this element. Part B of the assessment is compulsory for all students with a marking allocation of 50% awarded within this element. The assignment has been designed to cover the following learning outcomes associated with successful completion of the module: Knowledge: K1. An appreciation of the requirements for financial and management control and the application of project control processes. K2. Critical understanding of the role of accounting information within an organisations decision making. K2. A critical understanding of the relationship between financial resources, time, and quality in achieving project objectives. Skills: S1. The cognitive skills of critical thinking and analysis in showing how the finance function can make a significant contribution to the successful strategic management of an organisations projects. S2. The ability to apply and evaluate tools and techniques associated with financial management and the management of projects. S3. The capability to evaluate projects from a financial, human resource and time related perspective. PART A (50\%) Question 1 KK Knight PLC (25\%) The finance manager of KK Knight PLC is evaluating two mutually exclusive projects with the following cash flows. The company's current return on capital employed is 11 per cent (average investment basis) and the company uses straight-line depreciation over the life of the project i.e. 5 years with a 0 zero residual value, (straight line depreciation means equal monetary amount of depreciation each year). Required: (a) Advise KK Knight PLC which project should be undertaken using: (i) the payback method of investment appraisal (ii) the accounting rate of return (ARR) method of investment appraisal: (iii) the net present value method of investment appraisal. (16\%) (b) Critically assess and discuss the problems that arise for the net present value method of investment appraisal when capital is limited, and explain how such problems may be resolved in practice. (9\%) Question 2 Fischer Circuits Ltd (25\%) Fischer Circuits Lid manufactures electrical components, which are sold to industrial users. The abbreviated financial statements for each of the last two years are as follows: Statements of financial position as at 31December Dividends were paid on ordinary shares of E91,000 and E95,000 in 2019 and 2020 , respectively. Required: Calculate the following financial ratios for both years (using year-end figures for statement of financial position items): Produce a report for the Board of Directors of Fischer Circuits Ltd that evaluates the performance of the company across the two years within the areas of profitability, liquidity, and efficiency. You may wish to suggest methods for improving these key indicators and the overall performance of the business. (9%)