Assignment Task: Case study and Literature Review
The Case Study - Baxil Electronics
This case study will assess your knowledge of key content areas of SBM1203.You are required to read analyze the case study "Baxil Electronics". This case helps you to apply various capital budgeting concepts and techniques and to investigate how sensitive our estimate of NPV is to changes in that one variable. You are also required to review any four publications related to the topic as part of this assignment and critique them for relevance to case study. You will find the case study and related reading material on Canvasna and answer the questions. You can access this case when you click on assessment 3
Baxil Electronics- A Case Study
Question 1: What are the factors they may influence producing PDA?
Question 2: What are methods available to evaluate the project? Discuss in detail? (Answering this question may require some research)
Question 3: What is the payback period of the project ?
Question 4: What is the profitability index of the project?
Question 5: What is the IRR of the project?
Question 6: How sensitive is the NPV to changes in the price of the new PDA applying required return 12%?
Question 7: How sensitive is the NPV to changes in the quantity sold of the new PDA applying required return 12%?
Question 8: Would you like to proceed with this investment during the corona virus period ? Discuss in support of your answer.
Attachment:- Case Study-Baxil Electronics.rar