FIN425 Project
The project is divided into five different parts:
1. Project Introduction: You should write a 2-4 pages that answer the following questions:
a. What is your project?
b. Is this a new project that is never been done before in Kuwait?
c. What were your motives behind selecting such project?
d. What is your project plan?
e. What is your project’s location?
2. Project Marketing Information: You should write 1-3 pages that answer the following
questions:
a. Who are your target customers?
b. Who are your competitors? What are your market advantages?
c. What is the market demand for such project?
3. Project Financial Information:
a. How much are your Initial investment, expected sales, variable cost, fixed
cost, & depreciation? (you need to estimate CF)
b. What are the sources of funds?
c. Are there plans for expansion? Calculate the Growth option
4. Project analysis: Estimate the following financial data:
a. Cash flow estimation (WACC, NPV, IRR, MIRR, PBP, AAR)
b. Breakeven point. (Finance and Accounting) Using an Equation and using Goal
seek function in Excel.
c. Sensitivity analysis. Select one variable and why did you select it? Do a onedimensional Data table in Excel. Then choose two variables and do a twodimensional Data table in Excel
d. Are there any externalities? What is the opportunity cost?
e. Abandonment option
f. Profitability index
g. Any other analysis required.
5. Conclusion
Project Instruction:
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3 students per group
All calculations must be done in Excel.
You must turn in the word document and the Excel file in a flash drive
You must turn in a print-out of the whole report
Appendix should include your references and where you obtained your information.
Deadline: Thursday April 25th