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MATH Project Calculating the NPV of your Business Operation Your Business Operation You are required to complete a Managerial Math Individual Work Based Project. This
MATH Project Calculating the NPV of your Business Operation Your Business Operation You are required to complete a Managerial Math Individual Work Based Project. This project involves determining the NPV of your Business Operation. You will need to provide Full details in your project of all Equations (can be written), Emeline; (can be written} and Meaningful Statements and SCAN your document as PDF (under 10 MB] and Upload your document into Moodle Dropbox. As well, you need to provide a Typed full 1-page executive report of the nancial value of the Business Operation along with recommendations for improvements and suggestions. Your Business Operation requires computing the net present values of values inows and outows of money and of the entire operation. You are asked to detail ally: this money on timelines and value the funds at the beginning ofthe project. Assume an interest rate of 5% c.m for the NPV calculation. The entire operation is over 1 year. Show FULL details at evem time point where there is a money event occurring. In your portfolio, you have Outgoing funds and Incoming funds. Outgoing funds: 1] Purchase of $100,000 bond 2] Real estate Rental expenses of $900 per month for 1 year 3] Equipment expenses of $400 per month 4] Business operation expenses of $700 per month 5] Loan payments on a loan of $200,000 at 2% 9g, paid quarterly to be repaid in full in Lg Incoming Funds [Revenues] 1] Redemption of a $100,000 bond redeemable at Face Value 1 year from time 0 2] Coupons on bond at 3% 909' 3] Salvage value of Equipment of $20,000 valued at end of 1 year 4] $200,000 loan from bank 5] Income Revenue from business operation at $8,000 each month for 1 year ll 2l 4] 5] IIlI-UIIIIII Iunua Its-clluca Redemption of a $100,000 bond redeemable at Face Value 1 year from time 0 Coupons on bond at 3% 909' Salvage value of Equipment of $20,000 valued at end of 1 year $200,000 loan from bank Income Revenue from business operation at $8,000 each month for 1 year Make sure to have all documents in PDF format a} b} C] A detailed timeline of all of the Outgoing funds and Incoming Funds. Use different Colors or styles to distinguish them (Or use outgoing above the line and Incoming below the line]. Make Timeline readable. Show every month and quarter and yearly values clearly. Use landscape orientation to allow for more room. Funds must be clearly labelled showing all relevant Dates. Annuities must be clearly labelled and show individual payments. Use arrows to indicate where funds are being valued. Determine the Net Present Value of the Operation at time 0. Use 5% CJ\" for this valuation. m On a separate page from the detailed timeline, clearly Show the value of EACH fund and the corresponding Full Equation detailing than the value of the fund. Show all equations relating to these totals. Show all details of the fund. Also compute the NPV of the entire operation and the Fully detailed NPV calculation of the operation. Show the value as Incoming funds minus the outgoing funds using present values of all. Show complete details of all calculations. Total Marks = 40| COMMENT on the value of the ngm'jgn from a financial point of view in a 1-Page typed executive report. The report needs to include an Introduction, financial commentary section and conclusion. Include recommendations, comments and suggestions as to how the financial aspect of the project could be improved. Support your comments Based on Your findings from parts a} and b]. Total Marks: 20
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