FSA Fall 2023 Group Project Requirements
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School
New York University *
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Course
MISC
Subject
Finance
Date
Jan 9, 2024
Type
Pages
2
Uploaded by DoctorCrownGoat30
Project
Overview:
The
Financial
Statement
Analysis
(FSA)
Class
Project
(the
“Project”)
is
designed
to
help
you
integrate
and
synthesize
what
you
learn
in
FSA
during
the
semester
into
real
world
analysis.
Below
is
a
summary
of
the
Project.
You
are
an
intern
working
as
an
analyst
at
an
asset
management
firm.
One
of
our
clients
has
engaged
our
firm
to
provide
an
investment
recommendation
as
to
where
they
should
place
a
$40
million
investment
of
excess
cash.
You
have
three
investment
options
to
choose
from,
but
you
must
pick
only
one.
Therefore,
please
pick
one
of
the
following
three
companies
to
analyze
as
part
of
this
project:
1.
Paramount
Global
(Ticker
—
“PARA”)
2.
Walt Disney
Co
(Ticker
—
“DIS”)
Our
client
is
interested
in
learning
more
about
a
particular
company
and
its
historical
financial
performance
and
position.
Deliverables:
The
Project
has
three
specific
deliverables.
Given
that
time
is
of
the
essence,
all
due
dates
must
be
strictly
adhered
to
in
accordance
with
the
terms
of
the
engagement
letter
with
our
client.
Any
late
submissions
are
legally
considered
a
default
of
the
engagement
letter
in
its
entirety
and
thus
allows
our
client,
at
their
sole
discretion,
to
nullify
the
terms
of
the
engagement
which
would
result
in
no
fee
paid
to
our
firm.
Below
are
the
specific
deliverables
that
have
been
set
forth
in
the
engagement
letter.
Financial
Model
(Excel):
1.
Tabs
T2
through
T4
on
the
excel
template—Prepare
in
auditable
form
(see
“Important
Note”
below)
a
model
of
the
historical
financial
statements
of
the
company
for
the
most
recent
fiscal
years
as
called
for
in
each
tab.
2.
Tabs
T5
through
T9
on
the
excel
template—Prepare
a
set
of
concrete,
actionable
analysis
for
how
the
company’s
leadership
could
improve
their
operational
and
non-operational
performance.
The
analysis
should
consider
the
company
on
all
dimensions
covered
in
our
FSA
class.
3.
Tab
T10
—Prepare
an
income
statement
forecast
for
the
next
fiscal
/
calendar
year
(a
12-month
forecast).
Group
Presentation:
4.
Investment
Recommendation-
Prepare
a
concise
recommendation
to
be
presented
in
PowerPoint
to
our
firm’s
Senior
Investment
Committee.
In
arriving
at
your
recommendation,
the
Investment
Committee
is
looking
for
you
to
determine
those
metrics
(e.g.,
financial
ratio,
financial
/
market
comparisons,
and
comparative
financial
analysis)
that
highlights
the
strengths
and
weaknesses
of
the
company
you
have
selected
for
a
potential
investment
opportunity.
The
structure
of
the
presentation
should
follow
the
following
format,
but
given
the
confidence
the
investment
Committee
has
in
your
technical
capabilities
and
creativity,
you
are
permitted
to
have
leeway
in
your
specific
presentations
if
you
think
there
is
a
more
effective
way
to
support
your
overall
recommendation.
Details:
General
presentation
structure:
1.
Strengths
2.
Weaknesses
3.
Opportunities
4,
Threats
5.
“Next
Year”
income
statement
forecast
6.
Conclusion
Our
client
is
a
professional
with
a
strong
understanding
of
financial
reporting.
In
supporting
your
overall
recommendation,
you
must
provide
analysis
details
in
the
multi-tab
excel
spreadsheet
that
our
firm
has
developed.
As
outlined
above,
each
tab
in
T5
through
T9
must
include
BRIEF
conclusions
about
your
analysis
in
the
columns
labeled
“Analysis”.
You
can
embed
graphics
or
charts
in
each
tab,
as
relevant
if
that
hel
ps
support
your
analysis.
Below
are
specific
details
what
your
final
excel
workbook
should
include:
Tab
1:
Cover
sheet
with
Company
name
that
you
have
chosen
to
analyze,
team
number
and
names/contact
information
of
each
team
member.
Tab
2:
Balance
Sheets
-Four years
of
financial
statements,
along
with
a
vertical
and
horizontal
analysis.
Tab
3:
Income
Statements
—
Four
years
of
financial
statements,
along
with
a
vertical
and
horizontal
analysis.
Tab
4:
Statements
of
Cash
Flows
—
Four
years
of
financial
statements.
Tab
5:
Operating
Performance
(profitability)
Tab
6:
Operating
Performance
(efficiency)
Tab
7:
Debt
financing
metrics
Tab
8:
Equity
and
market-based
metrics
Tab
9:
Operational
and
financial
improvements
Tab
10:
2023
Income
Statement
Forecast
Important
notes:
1.
A
key
part
of
this
project
is
for
you
to
expand
your
spreadsheet
skills
as
it
relates
to
financial
modeling.
As
such,
each
value
in
your
spreadsheet
needs
to
be
“auditable”,
and
therefore,
needs
to
be
linked
within
the
excel
template
so
that
a
reviewer
of
the
information/data
can
precisely
follow
the
source
of
each
number
without
having
to
inquire
of
the
preparer.
This
is
just
one
component
of
financial
modeling
and
is
a
very
important
“real
world”
skill
to
develop.
This
project
will
provide
you
the
opportunity
for
you
to
demonstrate
your
financial
modeling
skills.
Your
group
will
select
a
company
for
analysis
during
our
third
class
session.
You
must
download
the
financial
data
from
the
Securities
and
Exchange
Commission
(“SEC”)
website
(SEC.gov).
a.
Caution:
Do
not
use
investment
sites
for
your
financial
data.
You
can
use
these
sites
for
analysis,
but not
for
the
original
data
in
Tabs
2-4.
Use
the
company’s
submissions
to
the
SEC,
per
instructions
above.
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- Suppose you are the financial manager of a firm considering the following five projects. Show formulas and work, without the use of excel or a financial calculator. Project A Project B Project C Project D Project E Initial Investment -$10,000 -$15,000 -$14,000 -$6,000 -$1,500 Year 1 $5,000 $5,000 $6,000 $4,000 $1,000 Year 2 $4,000 $5,000 $4,000 $2,000 $250 Year 3 $2,000 $5,000 $3,500 $2,000 $100 Year 4 $1,000 $5,000 $2,500 $2,000 $100 Year 5 $5,000 $2,000 $100 Year 6 $2,000 $100 Calculate the NPV for each project, assuming a discount rate of 11%.arrow_forwardYou are a project manager for your company and you are faced with five potential projects that you can invest in. Free cash flow projections and additional relevant data are given for each project in the table below. Assume that there are no cash flows after year 3. Assume that you can only take each project once and that you can only choose one project. Which project would you invest in? Select the best answer. Project Project A Project B Project C Project D Project E O I. Project A II. Project B III. Project C IV. Project D O V. Project E FCF Forecasts by Year (in $1,000) 0 2 1 500 (400) (400) (300) (250) (300) 75 60 75 135 115 175 3 650 210 190 200 Interest Rate (EAR) 8.0% 10.0% 10.0% 12.0% 12.0% IRR 25.00% 17.57% 15.92% 17.81% 19.96%arrow_forwardGive an example of a qualitative factor that should be considered in a capital investment analysis related to acquiring automated factory equipment. Please respond to these two parts with a full paragraph for each part (150 words per paragraph) and respond to 2 or more of your classmates with full paragraph responses.arrow_forward
- Below are four cases that you will have to solve using Excel spreadsheets. 1st case The company COMERCIAL SA has two investment alternatives that present the following information: PROJECT A B It is requested Initial investment. $25,000 $22,000 Cash flows year 1 1. Determine the internal rate of return. 2. Determine the present value. $7,000 $12,000 The discount rate for the project will be 10% and the MARR will be 20%. 3. Determine the recovery period. 4. Define which is the most viable project. Year 2 cash flows $15,000 $8,000 Year 3 cash flows $18,000 $12,000arrow_forwardhelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!arrow_forwardHelp please, 2. Perform a financial analysis for a project using the format provided in Figure 4-5 in your textbook (attached business_case_financials template). Assume that the project costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Using the attached business case financials template, calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.Business case financial spreadsheet for Task 2 and paragraphexplaining your recommendations for investing or not in the project.arrow_forward
- Required information. [The following information applies to the questions displayed below) The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 4,500,000 1,500,000 800,000 Average Assets $ 20,000,000 12,500,000 10,000,000 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Cameras Phones Computers Income $ 4,500,000 $ 1,500,000 800.000 Average Assets 20,000,000 12,500,000 Return on Investment % % 10,000,000 %arrow_forwardFinancial Accountingarrow_forwardTopic: Part A (Essay): (15 marks) Critically discuss the various aspects of capital investment appraisal and explain how you could evaluate an investment proposal in a technology startup. In your discussions, you should also assess the cashflow generation, its financial viability, performance and non-financial considerations of the startup. You are expected to use relevant literatures and real business examples to support your discussions. In choosing your business examples, please do not use examples provided in class, textbooks or other sources. The report is worth 25% and has a maximum 1,500 words limit (excluding the title, tables, headings/sub-headings and references) and is to be completed individually. To successfully complete the report, students are required to provide references within the report to at least four (4) relevant scholarly articles if secondary data are used. A mark out of 100 will be awarded, which will in turn be converted to a score out of 15. Hints: In making…arrow_forward
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