Instructions on Assessment: The assignment should be word processed and the maximum word length for the assignment is 3,000 words (excluding appendices, references and bibliography). Work which exceeds this word limit will be penalised. It is advisable to retain a copy of your assignment for your own records. Assessment Requirements ‘In finance we assume that the objective of the firm is to maximize shareholder value. Put simply this means that managers should create as much wealth as possible for the shareholders. Given this objective, any financing or investment decision expected to improve the value of the shareholders’ stake in the firm is acceptable’. Pike R. & amp; Neale, B. (2006) Corporate Finance and Investment (5th. Edition) p.10 REQUIRED Suggest a possible long term investment opportunity* for a company of your choice and in the context of the above quotation, undertake the following: A) Capital Investment Appraisal Methods Critically evaluate techniques which may be used to assist in the decision making process**. (50%) * Your chosen company should be a real one. It is not necessary to provide extensive detail of either the company or the investment in question but merely to provide an example to give your work a context. ** You should not merely explain how various measures are calculated but rather should critically evaluate their potential usefulness in the context of wealth creation B) Behavioural Aspects of Decision Making ‘It is often forgotten that CI (Capital Investment) decision-making is a human activity rather than an objective, mechanical procedure. There are people behind the “process”. It is this human appreciation of CI decision making which appears to be missing from the rational, economic models which have driven normative CI theory.’ Northcott, D. (1992) Capital Investment Decision-Making, Academic Press p.124 Required Critically assess the potential impact of behavioural issues on the decision making process in respect of the investment opportunity identified in part A. (50%) Note that this assignment accounts for 100% of the overall mark for the module. References to relevant academic theory and research should be provided and referenced appropriately. The assignment should be word processed and there is a strict limit of 3,000 words (excluding appendices, list of references and bibliography). Work which exceeds this word limit will therefore be penalised as shown overleaf. The word count must be stated in the assignment. A disc containing your work must be submitted. Referencing your work The Harvard (alphabetical) system of referencing should be used in your work as follows: Within the Text The Harvard method of referring to publications and of arranging references uses the author''s name and the date of the publication in brackets within the text of the work. Eg It has been argued that the chances of success are significantly enhanced by well developed planning systems (Smith 1999) At the End of the Work In addition, a full list of references is provided at the end of the text in alphabetical order by author''s name. The general format of a journal reference is shown below: Smith, J. (1999) How to succeed! Journal of Entrepreneurs, 1(2), p. 34-56 Author/s name and initials are listed first, followed by year of publication in brackets. Then there is the title of article and the journal where article appears, which is underlined. Finally, state the volume and issue Number (in brackets) along with the pages where article can be located. For further information, including advice on how to cite information from the web, you should refer to the University’s ‘Cite them Right’ publication which can be accessed from the University website using the following link: http://northumbria.ac.uk/sd/central/library/ir/orginfo/ Plagiarism Your attention is drawn to the University''s stated position on plagiarism. The University''s regulations will be invoked where there is evidence of collusion between individuals or a failure to reference work appropriately. THE WORK OF OTHERS WHICH IS INCLUDED IN THE ASSIGNMENT MUST BE ATTRIBUTED TO ITS SOURCE. (A full bibliography and a list of references must be submitted). Learning Outcomes This assessment will address the following learning outcomes for the module: 1. Critically evaluate alternative methods of capital investment appraisal. 2. Critically evaluate methods for incorporating risk into investment decisions. 3. Critically discuss how behavioural issues may affect decision-making. The assessment will also assist in the development of the following transferable skills Literacy X Numeracy X Communication X Use of ICTs X Working with Others