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FM202 1


(10% of course grade)
Semester Two, 2014
OFFICIAL (HARDCOPY) DUE DATE: October 15, Wednesday, Beginning of Lecture
Softcopy: Submit on Moodle no later than 3 hours after it is due
(Deadline for Clarifications: Wednesday October 8)

Part I. Financial Analysis and Executive Summary (60 marks)

Your group has decided to team up as business partners to start a new business. Study
various lines of small businesses in Fiji. Select your groups preferred line of business.
[Relevant discussions will be conducted during tutorials.]

For this part of your assignment, you will be required to conduct relevant financial analysis
and to write a one-paged Executive Summary.

Executive Summary (20/60 marks)

Finance: Estimation of monthly cash flows (10/60 marks)
This is to be done in Excel. Present relevant figures from Excel in Table 1 of your report.
Below the table present the justification for each estimate; refer to relevant sources where

Project Evaluation and Scenario Analyses (30/60 marks)
What is the Net Present Value for your proposed business (use a five-year projection of cash
flows with an estimated terminal value for the business. (Hint: Review calculations of cash
flows. You will need to estimate all relevant values to calculate net income and cash flows.
Some assumptions may be made.)
Other relevant issues: _______________________

This is to be done in Excel. Label all headings and items clearly. On the bottom of each table,
clearly explain which figures are changed under the Optimistic and Pessimistic scenario.
Present estimations from Excel in Tables 2, 2A and 2B for the expected, optimistic and
pessimistic scenarios, respectively. Justify the estimated changes; present the justifications
below each table.

Is this a profitable project? In the Executive Summary, briefly comment on your investment
decision based on the NPV estimates.

Part II. Lessons learned from a small business owner-manager (30 marks)

With the intention to help your group increase the success of your new business, you have
decided to conduct an interview with a small business owner/manager to obtain more insights
into your selected line of business. Write a one-page report highlighting what you have
learned from the owner-manager. Present other details during your group presentation.
FM202 2

(Note: Your group must first seek a small business owner/manager who is willing to be
interviewed. Preferably that business is in the same line of business you intend to operate in.
If possible, do not interview family of any of the group members so that you have a broader
exposure to the real world. Start early because this search can be time consuming.)
1. Pre-draft all the interview questions and come up with a list before the interview. Discuss
with your group members about the roles of each member during the interview and
organize the order of questions to be asked.
2. Try to meet at the company so that you can observe their daily operations. All group
members must be present for the interview and take your own notes so that you can
contribute in the write up.
3. Make sure that you arrive at the company at least 5 minutes before the interview time to
show your respect and that you value this interview. [Being on time also shows your time
management skills and professionalism (two of the USP Graduate Attributes).]

Guideline on questions:
Your interview questions should include but not limited to the following:
i. How to run a small business effectively?
ii. What is the owner-managers financial advice?
iii. How to minimize costs?
iv. What are the possible problems/challenges and how to solve these problems?
v. How to be profitable?
vi. How to be successful?
vii. Any other advice?

Report writing and presentation (10 marks)

This assignment must be typed and all work is to be presented professionally.
Limit your entire report to no more than 3 pages, double-spaced with Time New Roman
Font size 12 (a smaller font size will not be accepted). The page limit excludes tables, cover
page, declaration of originality and reference page.

Bullet points may be used to highlight or summarize ideas or findings where appropriate.

Important: In this course, you are expected to write in proper and formal English. Although
this is not an English course, a university student is expected to write and communicate
fluently in English (see the USP Graduate Attributes). Make sure you edit all your written
work carefully and do a spell check on the final version of your assignment before handing it
in. Any typos, incomplete sentences or grammatical errors may cost you marks.

FM202 3
Your checklist:
1. Before submitting the report, edit your report for clarity, presentations (organisation,
flow) and do a spell check on the final version. Please write in proper English. Poor or
unclear writing will cost you marks.
2. References (not counted in the page limit). List all websites and resources in which you
obtained or quoted information. Remember NOT to keep copy and paste written
materials from elsewhere without referencing. Paraphrase whenever possible.
3. The order of your hard-copy report should be organized as follows:
I. A Cover Page (names of all members, sorted by alphabetical order: last name, first
name; ID number).
II. Declaration of Originality (all members must sign for the report to be acceptable for
III. Content
IV. References.
V. Appendices.
Penalty applies for not following instructions.
Note: In order to be fair to every student in this paper, please do not show your answers to
your lecturer for feedback prior to the due date. You may clarify with your lecturer (please
note the deadline for Questions-and-Answers period) if the questions are not clear but please
do not ask for specific hint or if your approach or answer is correct prior to handing in your
Late submission of assignments
The hardcopy of the assignment must be handed in on time as specified in the deadline.
Note that failure to submit an assignment on time will lead to a penalty. Ten percent of total
possible (assignments) marks will be deducted from the mark the work merits for each day,
or part of a day, that the assignment is submitted after the due time. Any assignment
submitted after a model answer has been made available will automatically be awarded a zero
Plagiarism and Dishonest Practice in Coursework:
No plagiarism, please! All cheating and dishonest practices (copying, plagiarism, collusion,
etc) in relation to assignments, tests and examinations will be awarded a 0 grade to ALL
parties involved.
This write up should be the original creation of your group. If any part of your write
up is similar to any other sources without proper quotations, the assignment will
automatically be given a zero. Any assignments from different groups that share any
similar write-up or analyses will all be given a zero. The case will also be referred to the
Student Disciplinary Committee for disciplinary action.