Explain the assumptions you make in the estimation of project cash flows. For example, if you estimate revenue on the basis of a constant growth rate, you have to explain why the rate is not expected to change over time
Apply at least two appraisal methods to the analysis of a real – life project
Choose and apply at least two of the three appraisal tools in your analysis. If you decide to apply all of them, you might get up to 5% bonus marks if the analysis is soundly conducted.
Review the literature associated with the two appraisal tools (preferably, 3- 5 academic journal papers for each approach).
Explain the assumptions you make in the estimation of project cash flows. For example, if you estimate revenue on the basis of a constant growth rate, you have to explain why the rate is not expected to change over time.
Explain how you choose the project discount rate in the analysis of project NPV and IRR.
Compare the results obtained from different approaches. If there is any disparity between them, explain the reason and assess which result is more reliable. For example, you can compare the the range of NPV from Monte Carlo Simulation with the results from NPV.