As friends of Anna you have been asked to assist her in the preparation of a recommendation.
You are to prepare the following:
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1. Identify the cash flows for this project and perform a capital budgeting analysis (That is,
produce a spreadsheet of the cashflows for capital budgeting analysis clearly indicating
the net cash flow for each year). (9 marks)
2. Write a brief executive summary making a firm recommendation to accept or reject the
project. The executive summary must clarify potential issues, present concise reasons
for your recommendation and a summary of your financial analysis supporting your
recommendation. (Maximum 1000 words). (8 Marks)
3. What other factors should PPL consider including workings if needed (Maximum 500
words). (3 marks)