Numeracy 2 (MAII3007) Coursework Portfolio

Numeracy 2 (MAII3007)
Coursework Portfolio
Summer 2019
Student
Name
Student ID
Tutor
This is your Numeracy 2 e-portfolio which you must submit
by Tuesday 20th August 2019 via the Student Portal.
Please read this carefully
1

This is your Numeracy 2 e-portfolio for the semester commencing August
2019 (Summer 2019). Please save a copy on your computer and back it up
regularly (e.g. by saving it on your computer/ in the cloud (e.g. Google Drive)
/ emailing it to yourself). You should print a working copy and bring it to all
lectures and tutorials. However, at the end of the course, you will need to
submit a completed electronic copy.
Please read carefully the module handbook, the marking criteria and the
grade descriptors.
Academic Misconduct
You are responsible for ensuring that you understand the policy and
regulations about academic misconduct. You must:
• Complete this work alone except where required or allowed by the
assignment briefing paper and ensure it has not been written or
composed by or with the assistance of any other person.
• Make sure all sentences or passages quoted from other people’ work in
this assignment (with or without trivial changes) are in quotation marks,
and are specifically acknowledged by reference to the author, work and
page.
The portfolio’s structure
Section 1 - is worth 65% of the final mark and consists of 9 questions.
Section 2 - is an in-class task and is worth 15% of the final mark.
Section 3 - is worth 20% of the final mark and consists of three tasks
2

Section 1
9 questions 65 marks
You are required to complete this section immediately after completing the
class sessions related to each question. Answer all questions and show your
calculation and/or explain your results. Marks will be awarded for good
presentation.
You must show your workings.
QUESTION 1
[4 marks]
Which of these two numbers is bigger?
a) 5 - 3
b) 8.1 x 10-2
To answer this question, you must compare both numbers. For this purpose,
convert both numbers into decimals.
[TYPE YOUR ANSWER TO QUESTION 1 HERE]
a)5-3 b)8.1 x 10-2
= 1
53 = 1
125 = 0.008 = 8.1 x 1
102 = 8.1
100 =
0.081
Therefore, it is evident that 8.1 x 10-2 is bigger.
3
Scientific notation

QUESTION 2
[6 marks]
The car factory is considering an investment project to build a new
production line. The initial cost is £500,000. The annual cash inflows
(income) are projected to be as follows:
Year 1 Year 2 Year 3
£420,000 £180,000 £160,000
After 4 years the equipment will add no cost. The discount rate for this
investment is 7% p.a., compounded annually.
a) Work out the Net Present Value (NPV) of this investment
(5 marks)
b) Should the factory proceed with this project? Explain your reasoning.
(1 mark)
TYPE YOUR ANSWER TO QUESTION 2 HERE]
a) Discount Rate 7%
Year 0 1 2 3
Initial Investment
£5,00,000
.00
Annual Cash Inflows
£4,20,000
.00
£1,80,000
.00
£1,60,000
.00
Discount Factor @ 7%
0.9345794
39
0.8734387
28
0.8162978
77
Present Value of Cash
Inflows
£3,92,52
3.36
£1,57,21
8.97
£1,30,60
7.66
Net Present Value (PV of Cash Inflows - Initial
Investment) £1,80,350.00
b) Yes the factory should proceed with this project as its
Profitability Index is greater than 1,
4
NPV