MBA Assignment

Running head: MBA ASSIGNMENT
MBA Assignment
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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MBA ASSIGNMENT
Table of Contents
Executive Summary:........................................................................................................................2
Part A:..............................................................................................................................................2
i) Project Selection:..........................................................................................................................2
ii) Cost management:.......................................................................................................................3
iii) Funding:.....................................................................................................................................3
iv) Implementation and winding up:................................................................................................4
Conclusion and recommendations:..................................................................................................5
Part B:..............................................................................................................................................5
a. Indicting why do companies raise equity capital, while indicating what has happened to
Apple’s share price in 2019 and why has this happened:................................................................5
bi. Indicating the FCFs for this project:...........................................................................................7
bii. Calculating the NPV of the project:..........................................................................................8
biii. Depicting whether Apple should invest in the project with proper explanation:.....................9
biv. Indicating whether funding the project with ordinary shares is the cheapest way to finance
the business, while indicating what will happen if bond was used to finance the project:.............9
References and Bibliography:........................................................................................................10

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MBA ASSIGNMENT
Executive Summary:
The relevant analysis has been conducted on the process of project selection, cost
management, funding, implementation and winding. The in-depth information about each of the
project measurement and selection process has been discussed, which can be used by companies
like Apple Inc. for improving their productivity and revenue generation capability.
Part A:
i) Project Selection:
The relevant ways in which organization such as appealing can used to adequately select
and determine the projects that should we take Undertaken or avoided. From the relevant
evaluation, it could be identified that investment appraisal techniques such as net present value,
internal rate of return, discounted payback period, profitability index, and equivalent annual
annuity can be used for identifying the viable investment option for Apple Inc. Investment
appraisal techniques are relatively able to identify the current financial value of the project by
effectively implementing the time value of money on the future cash inflows and outflows. the
comparison of the current cash flow conditions of the project with the future cash flows is
essential to understand the level of income and benefits that could be generated by Apple Inc. in
future use. Technology industry is based on futuristic assumptions and products, which need
relevant evaluation of customer demand and customer, need where the investment appraisal
techniques would be beneficial for identifying the financially viable project for the company
falling under the technology sector. Companies such as IBM, Samsung, and Canon uses

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MBA ASSIGNMENT
investment appraisal techniques for determining the capability of their designated projects, which
intern improve their investment scope and uses losses incurred from time value of money
(Burtonshaw-Gunn 2017).
ii) Cost management:
The major role of Cost Management in a project is to identify all the relevant expenses
and cash outflows, which has been anticipated by the organization. Cost management is an
effective tool for reducing the level of expenses and maximizing the overall cash inflows of the
project. The major components or strategies that can be used by Apple Inc. are budget planning,
cost tracking, and time management, as it eventually helps in smoothing the process of project
competition. With the help of adequate budget planning, organizations are able to identify all the
relevant of expenses and resources that are needed by a particular project at a particular time,
which mainly reduces the damages that is conducted from excessive wastage of essential
resources. Moreover, with the help of cost tracking for the Apple Inc. can adequately detect all
the relevant details regarding the expenses incurred in each product and the segments in the
overall production process. Lastly, with the help of time management relevant task that is
essential for applying to complete can be adequately monitored. Hence, with the adequate cost
management tools Apple Inc. can boost the financial viability of a project and select the best
investment option that can improve their revenues in the long run (Sadgrove 2016).
iii) Funding:
Generally, there are two types of funding that is available to the organization for assisting
with the relevant projects. From the element analysis, it could be identified that companies like