Project Selection and Business Case | My Assignment Tutor

Assignment 2: Project Selection and Business Case1. Which project would you choose between: Project A with a benefit of $200,000 and cost of $100,000 Project B with a benefit of $300,000 and cost of $200,000Please show all the calculation steps.2. What is the Payback Period when: Initial investment = $300 Year 1 cash inflow = $100 Year 2 cash inflow = $130 Year 3 cash inflow = $200 Year 4 cash inflow = $50 Year 5 cash inflow = $340Please show all the calculation steps.3. What is the Payback Period when the project cost is $500,000 and the annual net cash inflow is$50,000? Please show all the calculation steps.4. When the investment is $200,000 with a net inflow of $50,000 per year for a period of 8 yearsand the required rate of return is 15%, what is the NPV? Please show all the calculation steps.Background:Small Business Financial Consulting (SBFC) specializes in providing financial consulting services two smallfirms that want to expand into global markets. Examples of its customer base include a softwaredeveloper in India wanting to set up a sales office in England; a contract manufacturer of audioequipment in Malaysia wanting to set up a partnership with firms in South America; and a winery inAustralia wanting to tap into the Canadian market.With local consultants in Europe; Southeast Asia; Australia; and North, South and Central America, SBFCprovides cost effective advice and support to small businesses that are expanding into or from thoseregions. SBFC consultants, who are both full time employees and contracted consultants, have in depthknowledge of local laws, language, business practices and culture, and the challenges that smallbusinesses face. Their business model is highly successful because they provide the same level of serviceas the big consulting firms, but their low overhead allows them to provide these services at a cost thatsmall organisations can afford.SBFC grew through mergers and acquisitions of other small companies in those markets where theirclients intended to expand. Most of the companies they acquired usually employed fewer than 10employees and often only two or three. Typically, the owners of those acquired firms become partnersin SBFC.Currently clients are invoiced by the local office that has the contract with the client. That local officecoordinates all the resources assigned to the project and reports the accumulated time and expenses tothe client in the client’s chosen currency.Accurate time and expense reporting and timely invoicing are essential to SBFC’s profitability. The factthat each SBFC office generally follows the format that the acquired company had been successfullyusing prior to joining SBFC is becoming quite a problem. Every office uses a different spreadsheet, andoften contracted consultants have their own too. As SBFC’s clients and offices have grown so have theinconsistencies in time and expense reporting practices by the SPFC offices. The number of differentlanguages and currencies in which SPFC operates has also led to confusion, inconsistencies, andinaccuracies.The partners at SBFC have decided to implement a new system for time and expense reporting that willconsolidate time and expense reporting, better manage currency conversions, and improve theconsistency of project tracking. They will keep the current ERP system in place that is used for invoicingand other financial applications.Current Business: AS-IS ModelCurrently employees and contractual consultants record their time and report their expenses in the localcurrency and language of the local office dealing directly with the client. Each SBFC office is responsiblefor keying in expense costs, time, and invoicing data into the ERP system that SBFC’s headquarters inNew York uses to track overall corporate financial data. Each office converts its accounts into U.S. dollarsbefore reporting to the ERP system. However, because most local offices joined as SBFC throughacquisition, the local SPFC offices generally follow the processes for expenses and invoicing that theacquired company had been successfully using Prior to joining SPFC.Individual project managers are required to approve invoices before they are generated by the ERPsystem. However, because many projects span multiple countries and different systems are used forexpense reporting, project managers currently do not have the capability of approving time andexpenses before employees are reimbursed. Also, project managers must rely on the ERP system totrack project time, which means there are often reporting delays because some local offices are not onlytimely or accurate when keying project data into the system.1. Business Case (Project package): Create a business case using the PRINCE2 Business Casetemplate provided. Call the project “TE Reporting System” project. TE stands for Time andExpense.Assignment The purpose of the Assignment 2 is to see how well a student understood the business caseanalysis material.Submission Method Each student will post Assignment 2, via the Assignment 2 section on Moodle.Due date and time 5:00 p.m. PST Wednesday, June 2, 2021 No late assignment will be accepted.File Naming To be more consistent, please use below naming convention for your following assignment:o Assignment2_[Lastname]_[First letter of firstname].pdfAssignment Questions1. Part 1: 50 points2. Part 2: 50 pointsTotal: 100 points = 10% of the course

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