Code and Title
FINA2006: Principles of Finance
Assessment 3: EXCEL Practice
Learning Outcomes demonstrated by successful completion of the task below
apply financial mathematics to investment
apply concepts of risk and return to project
apply spreadsheet techniques to financial analysis.
Due by 11:55pm AEST/AEDT Sunday
end of Week 9.
assesses students’ understanding of time value of money, capital budgeting and
spreadsheet applications. These are examined using a combination of EXCEL
practice tasks and a 250-word summary outlining the steps involved in using
EXCEL spreadsheet to apply financial mathematics. Students are required to
conduct independent research on how to use Microsoft EXCEL to complete the
You will use
Microsoft EXCEL to complete the two independent tasks for Assessment 3. Working
individually, you are required to prepare solutions to all tasks using solely
Microsoft EXCEL. You are also required to prepare a 250-word summary explaining
the EXCEL commands/functions/operations you have used to solve the calculation
Assessment 3 tasks (including the 250-word summary) as a single EXCEL file via
the Assessment submission link in the main navigation menu in FINA2006:
Principles of Finance. The Learning Facilitator will provide feedback via the
Grade Centre in the LMS portal. Feedback can be viewed in My Grades. You will
answer each task on a separate worksheet using EXCEL. Before submitting, name
the EXCEL file using only your student number. Do NOT submit any other types of
files, only submit one single EXCEL file containing answers to all tasks.
Failure to adhere to these requirements will result in a deduction of 20 marks.
Excel Practice Task 1 (Time Value of Money): (40 marks)
Ronald Trump has
just inherited a commercial building that is expected to produce the following
cash flows for the next 8 years:
Year 1: $100,000; Year 2: $200,000; Year 3: $300,000; Year 4: $400,000;
Year 5: $500,000; Year 6: $600,000; Year 7: $700,000; Year 8: $800,000.
Trump would rather receive the same cash flow each year and as such, he
approached a bank to sell the commercial building in return for a fixed cash
flow each year for the next 8 years. The bank has agreed to this arrangement,
based on an interest rate of 12% p.a. compounded monthly applied to the
valuation of the commercial building. If this arrangement goes ahead, how much
will Ronald Trump receive each year?
To answer Task 1, you MUST use EXCEL
commands/functions to do ALL calculations.
Task 2 (Capital Budgeting): (40 marks)
Gold Digger is
considering a major investment in a new gold mine in South Australia. According
to initial estimates, the investment outlay would be $3,000,000 and the project
would generate incremental cash flows of $600,000 per year for 9 years. The required
rate of return by the investors is 14% p.a. compounded annually.
Calculate the Accounting Rate of Return (ARR) (10 marks)
Calculate the Net Present Value (NPV) (10 marks)
Calculate the Internal Rate of Return (IRR) (10 marks)
Based on (b) and (c) above, should this project be accepted? Why? (10 marks)
To answer Task 2, you MUST use EXCEL
commands/functions to do ALL calculations.
Procedure Summary Task: (20 marks)
250-word summary detailing the EXCEL commands/functions/operations you have
used to solve Task 1 and Task 2. In your summary, you must explain clearly each
step you performed in using EXCEL to arrive at the final answers, including the
purpose of each calculation and the inbuilt EXCEL commands/functions employed.
It is essential that you use the APA 7th Edition Referencing
style for citing and referencing. Please see more information on referencing
here in the Academic Writing Guide found via the Academic Skills website.
All students are
responsible for ensuring that all work submitted is their own and is
appropriately referenced and academically written according to the Academic
Writing Guide. Students also need to have read and be aware of Torrens
University Australia Academic Integrity Policy and Procedure and subsequent
penalties for academic misconduct. These are viewable
Students also must keep a copy of
all submitted materials and any assessment drafts.
for Assessment Rubrics please check attached file in need high quality work. please read instructions carefully and follow rubric