FINANCIAL STRATEGY ASSESSED ESSAY COURSEWORK 2021 A new Chief Executive Officer, Joss Duwitt has been appointed to the board of Complex Solutions plc. , a large publicly listed corporation, owned by diversified investors, that carries no debt. You are the assistant to Joss who has tabled two items for the agenda of the next board meeting.
1. The appropriate discount (hurdle rate) to be set for the year for new investment projects by Complex solutions.
2. Getting agreement on conflicting views between managers as to which methods of capital investment appraisal should be used. Joss hopes for a well informed debate at the board and has requested a concise, clearly worded and structured advisory report of maximum length 3000 words with roughly equal parts for (1) and (2). For (1) you should deal with four sub-questions: (i) Conceptual background for non-specialists (ii)
The standard approach to risk used by financial specialists (iii) Implementation including required data collection (iv) Reliability of any estimates For (2) you should provide information on NPV, IRR, Payback and
Sensitivity analysis. The intention is to prepare board members to make intelligent contributions to the discussions. In addition, you may, if you wish, recommend and very briefly summarise (within the word limit) ONE useful SHORT article to increase understanding of one of the topics of interest; if so please embed the link in your report. In addition to your course material you may use the following to make critical remarks: https://hbr.org/2012/07/do-you-know-your-cost-of-capital