Reno Ltd invests £150,000 at 2.5% compound interest for three years. What will be the value of the investment after three years?
20231226 13:57:56
BPP Coursework Cover Sheet
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Programme

BSc Accounting & Finance

Module name

Mathematics and Business Finance

Schedule Term


Student Reference Number (SRN)


Report/Assignment Title

Mathematics and Business Finance

Date of Submission
(Please attach the confirmation of any extension received)


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BPP School of Business and Technology

BSc Accounting & Finance
Mathematics and Business Finance
Coursework Assessment Brief
Submission mode: Turnitin online access
1. General Assessment Guidance
· Your summative assessment for this module is made up of this coursework submission which accounts for 100% of the marks
· Please note late submissions will not be marked.
· You are required to submit all elements of your assessment via Turnitin online access. Only submissions made via the specified mode will be accepted and hard copies or any other digital form of submissions (like via email or pen drive etc.) will not be accepted.
· For coursework, the submission word limit is 2,500 words. You must comply with
the word count guidelines. You may submit LESS than 2,500 words but not more.
· Do not put your name or contact details anywhere on your submission. You should only put your student registration number (SRN) which will ensure your submission is recognised in the marking process.
· A total of 100 marks are available for this module assessment, and you are required to achieve minimum 40% to pass this module.
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· You should include a completed copy of the Assignment Cover sheet. Any
submission without this completed Assignment Cover sheet may be considered invalid and not marked.
2. Assessment Brief
You work as a junior accountant for Metro Ltd. Your line manager has been pleased with your work and is looking to assign you more responsibilities. He has asked you to complete a series of tasks to test what you can do.
All your solutions are to be done on one excel file. Please download the “MBF
Summative data.xlsx” excel file from the summative assessment area of the Hub. Please complete your details on the first tab of the spreadsheet and then answer the questions. For the written tasks (Tasks 1, 2 and 6) please just type your answer into the relevant tab. For the remaining tasks (Tasks 3, 4, 5, 7 and 8) the data is already preloaded onto the relevant excel tab and you need to use Excel to complete your answer below the data given. Rename your excel file as “student number – MBF
Summative.xlsx” e.g. “BP0123456 – MBF Summative.xlsx”. Upload this file via the link on the Hub before the submission deadline
a) i) Reno Ltd invests £150,000 at 2.5% compound interest for three years. What will be the value of the investment after three years?
(1 mark)
ii)Mukesh Ltd has received £65,661 after investing for 6 years at an annual interest rate of 6.5%. What was the original amount they invested?(1 mark)
iii) Alpha Ltd invests £45,000 and after 9 years it has received £62,300. The interest rate the bank applied to the deposit changed each year. Using the geometric mean method, calculate the average annual interest rate.(2 marks)
b) Link Bank is deciding whether to grant a loan application to a new customer. As part of the analysis, calculate the percentage change for each of the headline numbers on the table below.

30th June 2021

30th June 2020

£`s

£`s

Sales

3,420,000

2,745,000

Gross profit

1,825,000

1,365,000

Overheads

770,000

630,000

Net profit

1,055,000

735,000




Overdraft

42,000

57,000

Long term
loans

600,000

835,000

(3 marks)
c) The government has released the latest retail price index which suggests inflation was 1.62%. A typical basket of food at the supermarket this week costs £52.67. Calculate the cost of that typical basket:
i) a year ago
ii) one month ago (assuming inflation occurs evenly throughout the year)(2 marks)Total: 9 marks
a) Kwik supermart has ordered the following supplies over the last year from various suppliers:
1,200 units of product Alpha costing £9,480

1,350 units of product Beta costing £2,824.50

3,100 units of product Gamma costing £1.85 each

A new supplier has approached them offering them the same items at 11% less than the overall average price per unit they have paid in the previous year. What will be the average price per unit charged by the new supplier?(3 marks)
b) Expand and simplify the following expression: (6a – 5b) (2a + 7b)(1 mark)
c) Factorise the following expression 25a3b2 +10a2b315ab (1 mark)Total: 5 marks
The data in Sheet “Task 3 Data” of the Excel file “MBF Summative data.xls” relates to the weight (in grams) of a sample of 80 items produced by a machine.
You are required to:
a) Aggregate this data into a suitable frequency table using the COUNTIFS function and using an interval of 1.5(2 marks)
b) Plot a histogram of the data..(6 marks)
c) Calculate the statistics below for the given items:
i. Range
ii. The mean
iii. The median
iv. The mode
v. The standard deviation (5 marks)
d) The production manager is concerned that the machine is not working properly as the items of output vary in weight. The item should ideally weigh 25 grams and a variance of 3 grams of each side is acceptable. Comment briefly if the production manager is right to be concerned. Use the statistical data calculated in part ‘c’ above to support your answer.(4 marks)Total: 17 marks
Tourists seeking a luxury tour on the ‘Palace on rail’ in India can opt for either the ‘Luxury service’ or the ‘Maharajah service’.The manager of the ‘Palace on rail’ has produced the following table to show the bookings she received last season:

Type of Booking

Tourist`s home country

Maharajah Service

Luxury Service

France

13

44

Germany

29

36

Holland

24

19

England

8

27

The data is also provided in the “MBF Summative data.xlsx” file under the “Task 4 – Data” tab.
Required;
a) Produce a stacked bar chart to show the number of bookings by home country and type of booking.(3 marks)
b) Produce a pie chart to show the number of bookings as a whole by home country. Ensure the data labels on the pie chart are expressed in percentage form to 2 decimal places
c) Interpret your results
(3 marks)(2 marks)Total: 8 marks
A major car manufacturer has collated data on three of its main competitors – BMW,Cadillac and KIA.An extract of the data is provided in the “MBF Summative data.xlsx” file under the “Task 5 – Data” tab. Using this data, complete the following tasks:
ai) Use the "COUNTIF" function to count the number of cars manufactured by Cadillac(1 Mark)
ii) Use the "COUNTIFS" function to determine the number of Kia cars that are sold only in Russia.
(2 marks) bi) Using the VLOOKUP function, determine what the body type is for the 8Series model manufactured by BMW(2 marks)
ii) Using the VLOOKUP function, determine what the production years were for the STS model manufactured by Cadillac(2 marks)
c) Apply a filter to the data set and select filters to show only Large MPV`s produced by Kia and display it separately.(2 marks)
di) Copy all the main headings and the details for the first five Kia cars on the list. Transpose this data.(1 mark)
Using this data, conduct the following search:
ii) Run a "HLOOKUP" search to determine the body type for the Kia Pride model(1 mark)Total: 11 marks
a) Explain 2 differences between bonds and shares.(4 marks)
b) Homeshare rents out various newly built properties to lowincome families. It has recently rented a flat to a client for £9,000 per year.
A discount rate of 4% is used by Homeshare. Calculate the present value of this rental income assuming it is expected to continue in perpetuity and there will be:
i) No growth in annual rental income(1 mark)
ii) 1.5% growth in rental income. (2 marks)
c) Explain what is meant Market Risk and by Specific risk. How can an investor reduce these risks?(6 marks)Total: 13 marks
Supera Ltd are looking to invest in a new 4 year project with an initial outlay of£575,000. The project is in a line of business where Supera Ltd. has limited previous experience. All cash inflows occur at the end of each year.
Year 
Net cashflows 
0 
(575,000) 
1 
£125,000 
2 
£248,000 
3 
£176,000 
4 
£146,000 
i) Calculate the IRR of the project by discounting the cashflows by 4% and 8% and then applying the IRR formula – perform your workings on excel including formulas. A copy of the data above is provided in the “Task 7  Data” tab of the Excel file “MBF Summative data.xlsx”.There is also a present value table on the last tab of the same excel file.(8 marks)
ii) Check your answer using the IRR function in excel (1 mark)
iii) Supera Ltd has a set hurdle rate of 7.5% for projects. Assess whether or not it should accept the project based on your calculations and other information provided.(4 marks)
iv) Explain one advantage and one disadvantage of the IRR technique of investment appraisal.(4 marks)Total: 17 marks
Show full workings for all parts of the task. Use either of the two methods discussed in class for calculating percentage changes in part b.
Task 8
Goldie clothes are planning to expand their clothing business by opening a factory overseas.The initial investment will be £12,500,000. It is expected to generate net revenues of£6,500,000 each year if the project goes ahead. Additional costs for the project will be
£3,000,000 per year. [Cashflows occur at the end of each year]
The company’s weighted average cost of capital is 11% and the project will have a lifetime of 5 years.
(a) Calculate the net present value (NPV) of the above proposal showing your workings in an excel spreadsheet including formulas.You should complete your answer on the “Task 8 – Data” tab of the “MBF Summative data.xlsx” excel file.(10 marks)
(b) Calculate the Payback period of the above proposal in years and months. Round up to the next month.(4 marks)
c) Describe two advantages of using the NPV method over the Payback method and conclude whether it is still worth using the Payback technique as part of the investment appraisal process.(6 marks)Total: 20 marks
Show the stages of your calculations for parts a and b. For part c however, just the final answer can be shown
3. Marking Guide
Assessment Marking Scheme (Student Version)
The assignment is marked out of 100. The following table shows the mark allocation and the approach required.
Assignment Part

Mark

Approach

Task 1

9

Show full workings for all parts of the task. Use either of the two methods discussed in class for calculating percentage changes in part b.

Task 2

5

Show the stages of your calculations for parts a and b. For part c however, just the final answer can be shown

Task 3

17

You will need to produce a frequency table and a histogram. Ensure to include a chart title and label your x and y axes for the graph.
For part d – you can comment on what the mean, median, mode and standard deviation show. Also make a final point re whether production manager is correct in his assessment about the machine.

Task 4

8

For part a, the stacked bar chart needs to be in vertical column form. Ensure to include a chart title and label your x and y axes for each of the graphs.
For part b you will need to calculate percentages first using the data provided and then use the figures to produce the pie chart. Ensure the percentage figures are also included on the pie chart as data labels and also include a chart title.

Task 5

11

The cells in excel showing your solutions must include the full formulas used e.g. vlookup, countif etc. Ensure to label all parts of the question clearly e.g. ai), aii) etc.

Task 6

13

Ensure to show your workings for part b. For answers to written sections, ensure to develop your points fully to show your understanding and write in short paragraphs, avoid bullet points.

Task 7

17

For part i) you need to in effect do a manual calculation for IRR however you can use excel as a calculator. Each cashflow needs to be discounted using the relevant discount factor at 4% and then at 8%.
Note for part ii) the IRR per excel will be slightly different to the answer in i) but both IRR figures



should be within 0.2% of each other

Task 8

20

For part a, show all the main columns and rows in a table e.g. year, cash inflows, cash outflows, discount factor etc. You can use formulas within your spreadsheet to perform calculations.
For part b, again show your workings.Ensure you answer both parts of the question in part c – i.e. two advantages of NPV over payback and also explaining whether it is still worth using Payback as part of the investment appraisal process.

Total

100


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