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Penn State|FIN 301| World Campus Final Excel project 2022/2023
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Penn State|FIN 301| World Campus Final Excel project 2022/2023
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Penn State|FIN 301| World CampusFinal Excel project 2022/2023
0 0.5 1 2 Total
Possible
Points
No Calculations or Calculation using book values Correct Calculation using Market Correct Calculation using 2
Calculation of Weights Explanations for weights Rates with NO Explanation Market Rates with Explanation
No Calculations or Incorrect Calculation, Brief Correct Calculation based on 1
Cost of Debt Explanations Explanation, YTM with Explanation
Reasonable estimate
Cost of Equity
Reasonable Estimate of Correct Estimate of Beta based 1
Beta based on information on online data with Explanation
No Calculations or provided online (i.e Yahoo
Beta Finance) but No Explanation
Explanations
Expected Market Return No Calculations or Estimate for Market Return is Explanation of Expected Returns
Explanations not reasonable based on based on historical returns with
historical market performance reasonable estimate 1
No Calculations or Estimate not based on Explanation of Risk free rate 1
Risk-free Rate Explanations current Treasury yields but based on current T-
reasonable no explanation bond or T-bill yield
WACC Calculation Incorrect Calculation Incorrect Calculation with Correct Cacluation with
with minor errors carried minor errors carried through from Explanation of all parameters
No Calculations or through from above above assumptions with
Explanations assumptions with no explanation
2
explanation
Penn State|FIN 301| World Campus
Final Excel project 2022/2023
, Penn State|FIN 301| World Campus
Final Excel project 2022/2023
Total Possible Points from WACC calculation portion of project 8
Cash Flow Calc Total Pos
0 1 2 4
Points
No Calculations or All initial CFs properly 2
Initial Cash Flows Explanations Partially correct CFs identified with brief explanation
Few OCFs properly identified Most OCFs properly identified All OCFs properly identified 4
with no explanation with brief explanation with brief explanation of all
calculations (ie taxes & depr
No Calculations or
Operating CFs properly accounted
Explanations
for)
No Calculations or Partially correct CFs no tax All terminal after tax CFs 2
Terminal CFs Explanations adjustments properly identified with
brief explanation
No Calculations or All PV of Cash Flows correctly
Explanations calculated and Justification for
75/25 D/E Split Partial Calculations use of 2.5
NPV technique
No Calculations or All PV of Cash Flows correctly
Explanations calculated and Explantion for
25/75 D/E Split Partial Calculations underlying 2.5
assumptions of case
Total Possible Points from Cash Flow portion of project 13
0 1 2 3
Create NPV Profile for No Calculations or No Graph, Partial Graph is mostly correct with Graph is correct with all axis 3
Varying Explanations Calculations, Partial Partial Explanation properly labled with
Debt/WACC Explanation Explanation
Final Decision is Final Decision is correct Final Decision is correct with Final Decision is correct
Incorrect or Not Stated with limited or no explanation partial explanation of basis with thorough explanation
Final Decision by Case: of basis of decision and all of decision and all of basis of decision and all
Accept or Reject assumptions assumptions assumptions
3
Penn State|FIN 301| World Campus
Final Excel project 2022/2023
, Penn State|FIN 301| World Campus
Final Excel project 2022/2023
Unorganized difficult Somewhat difficult to find Very Organized, Neat, and Easy Very Organized, Neat, and 3
to follow with spelling some information and some for reader to follow with all Easy for reader to follow with
and grammar errors disorder gramar and spelling inputs and assumptions not all inputs and assumptions
Presentation errors clearly identified in one area clearly identified in one area
Total Possible Points from NPV Profiles and Presentation portion of project 9
Total Possible Points for the Final Project 30
Page 1
Minimum requirements for the Project.
1. Calculate the WACC for the company.
2. Create a partial income statement incremental cash flows from this project in the Blank
3. Enter formulas to calculate the NPV by finding the PV of the cash flows over the next four year
can either use the EXCEL formula PV() or use mathematical formula for PV of a lump sum.)
4. Set up the EXCEL worksheet so that you are able to change the parameters in B4-B12 and E9-
E highlighted in Yellow on the Blank template. Run the two cases: 75/25% split between issuing
bo 25/75% split between issuing bonds/equity. You can do this by completing one case and then
simp the worksheet and changing the numbers of the split (cells E9 and E10). Alternately, if you
are creating drop down boxes in excel, you can set the sheets up so that the user can choose this
val box and obtain the necessary solution.
Note that it is important to use the VLOOKUP function for calculating the cost of debt for
automa
5. Cells B54:64 List the Debt Fraction for New Capital varying from 0% to 100%. Using the Data
calculate the WACC and NPV for each value.
6. 5) Using the data generated using Data Tables, plot the NPV & WACC as a function of Debt Fr
plot the NPV on the primary Y-axis and the WACC on the secondary Y-axis. The Debt Fraction
s Alternately, you can also plot NPV & Debt Fraction as a function of WACC. If you do so,
ensure on the primary Y-axis and the Debt Fraction on the secondary Y-axis. The WACC should
be on th (see case for full instructions)
6. Make a clear recommendation whether the company should accept or reject the project for
each
7. If you have any discussion/explanation for any assumptions you have made or need to provide
discussion, you may do so on the worksheet titled " Answer Sheet "
8. Turn in your project in the drop box.
This sheet is provided in case yo
Penn State|FIN 301| World Campus
Final Excel project 2022/2023
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