Net Present Value

Question 1

Students will use Excel to analyze the NPV of a capital project using provided inputs and three potential scenarios. Based on the calculated NPV, students will determine if the firm should pursue the project. Tasks: Using the provided information students must calculate the appropriate class flows associated with the project.

These include:

1) cash flows from fixed assets;

2) cash flows from changes to operating capital; and

3) cash flows from operations. Remember to consider the impact of taxes on cash flows.

Calculate the base case scenario NPV. After calculating the base case NPV, the next step is to calculate the changes to cash flows and net present value for the worst case and best case scenarios. The overall expected NPV can then be estimated using the assumption of a 50% likelihood of the base case, 25% likelihood of the worst case, and 25% likelihood of the best case occurring.

Question 2

Discuss on the prospects of Islamic Crowd Funding in Malaysia taking into account :

1.  The suitabilty as well as acceptance by Malaysian Enterpreneurs and Business of Crowdfunding, and
2.  The two types of Licences issued by the Securities Commission – namely Equity Crowd Funding and Peer-To-Peer (P2P) Financing Crowdfunding is not specifically linked to Islamic / Shariaah compliancy