Corporate Finance

Answer the following question:

Write a report for top management explaining the theoretical rationale for the NPV (Net Present Value) approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches.

Each individual student is required to write an essay on this topic. The essay must be typed with double space and 12 fonts size (Times New Roman). It must not exceed 2000 words or 5 A4 size single pages excluding references, footnotes and appendices. The deadline for submission is ~1V~~a.Il (end of Week 6).

Students need to hand in their assignment (hard and soft copy!) to the coursework room in Marry Burton building (MB), 1st floor next to the university reception at (or before) 3pm on the day of the deadline. Earlier submission is fine. Late submissions which have not been agreed in advance by the lecturer will incur a penalty of 30% of the mark awarded.

The purpose of the coursework is to assess students' ability to critically analyse the contestable issues learned in the module. Particularly it is designed to assess learning outcomes. The course work will be assessed on:

1. The introduction clearly lays out the issues and arguments to follow.

2. The answer addresses the specific question.

3. The answer shows a clear and critical understanding of the subject.

4. The answer shows appropriate use of evidence and illustrative examples.

5. There is a good, appropriate conclusion.

6. Consistency and coherency.

7. Citations and bibliography are accurate and appropriate.

8. Writing style(sentence construction, paragraphing,