BTEC LEARNER ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each learner must sign a declaration confirming that the work is their own.
| Learner Name: | |
| Assessor Name: | |
| BTEC Programme Title: | Pearson BTEC Level 3 National Extended Diploma in Business |
| Unit or Component Number and Title: | Unit: 13 – Cost and Management Accounting |
| Assignment Title: | 2. Investment Appraisal Methods |
| Date Assignment Submitted: |
Please list the evidence submitted for each task. Indicate the page numbers where the evidence can be found or describe the nature of the evidence (e.g. video, illustration).
| Task ref. | Evidence submitted |
| 1.1 | Presentation – to include explanation of investment techniques plus calculations |
| 1.2 | Presentation – to include explanation regarding how financial and non-financial/quantitative factors may influence final investment decisions |
| 1.3 | Presentation – covering (1) analysis of capital investment calculations, and (2) Evaluation of investment appraisal calculations and other factors to judge the long-term capital investment and to determine appropriate recommendations |
| Learner declaration I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Learner signature: Date: |
BTEC Assignment Brief
| Qualification | Pearson BTEC Level 3 National Foundation Diploma in Business Pearson BTEC Level 3 National Extended Diploma in Business |
| Unit or Component number and title | Unit 13 – Cost and Management Accounting |
| Learning aim(s) (For NQF/RQF only) | D Undertake investment appraisal of long-term capital investment. |
| Assignment title | Assignment 2: Investment Appraisal Methods |
| Assessor | |
| Hand out date | |
| Hand in deadline | |
| Vocational Scenario or Context | Your line manager at Spex Ltd was impressed with your reports and wants you to now expand your knowledge into other areas. Investment appraisal is an integral part of capital budgeting, and is applicable to areas even where the returns may not be easily quantifiable such as personnel, marketing, and training. You are to look into investment appraisals and specifically the appraisal of long-term capital investment. Your manager will provide a relevant case study and data. Your findings should be included within a presentation which includes detailed speakers notes or voiceover. |
| Task 1 | Task 1.1: Explain with at least three examples the purpose of long-term capital investments and the importance – to include definitions – of the following investment appraisal methods for strategic planning by management given the time-value of money: payback accounting/annual rate of return net present value internal rate of return You should then apply the following main investment appraisal techniques to alternative capital investment proposals using the data provided in Appendix 1: net cash flows (undiscounted) payback period accounting rate of return net present value. Task 1.2: Explain how financial and non-financial considerations and factors may influence the final decision. Examples of non-financial and qualitative factors could include some or all of the following: time risk social responsibility the environment and sustainability business ethics (e.g. impact on stakeholders) brand/reputation potential impact elsewhere in the company Your analysis should also include a reference to opportunity cost and the implications of depreciation. Relate this to an analysis of your results from Task 1.1. Task 1.3: Based on the results of your investment appraisal calculations as well as other factors such as the analysis of the financial and non-financial considerations, evaluate the long-term capital investment proposal. From this, formulate a set of appropriate and relevant recommendations including your preferred option. Your recommendations should take into account internal and external stakeholder needs and reflect the business’s social responsibilities. Provide your findings and recommendations in the form of a presentation. |
| Checklist of evidence required | Calculations Presentation |
| Criteria covered by this task: | |
| Unit/Criteria reference | To achieve the criteria you must show that you are able to: |
| D.D3 | Evaluate the long-term capital investment proposal, taking into account both financial and non-financial considerations and formulate a set of appropriate and relevant recommendations. |
| D.M4 | Analyse the results of the capital investment appraisal for decision making. |
| D.P7 | Explain how non-financial considerations affect capital investment proposals. |
| D.P6 | Apply investment appraisal methods to alternative capital investment proposals in given scenarios. |
| Sources of information to support you with this Assignment | Structure: Please ensure you have thoroughly reviewed all the assignment resources provided and refer to the assignment brief regularly, when writing an assignment to reduce errors and omissions. Your introduction to a task should refer to the task and should also outline all the topics you will discuss and the order in which you will do this. You should always provide referenced examples to illustrate your points. Providing evidence like this can be the difference between a Pass and a Merit/Distinction. In text citations should be used in your work. This page will show you how to do it well. https://www.librarydevelopment.group.shef.ac.uk/referencing/harvard.html Use www.mybib.com for your bibliography- there is an add on for Google chrome. Please provide a full conclusion summing up what you have previously listed in the introduction and discussed/described/assessed/ evaluated in the main body of your assignment. Investment appraisal – list of topics (Tutor2u) Evaluating investment appraisal (Tutor2u) Investment appraisal Quantitative Skills: Investment Appraisal Advanced Investment Appraisal Investment Appraisal (Kaplan) Payback period example (Tutor2u) Accounting Rate of Return example (Tutor2u) Payback Period (Tutor2u) Net Present Value (Tutor2u) Present value discount tables | |
| Other assessment materials attached to this Assignment Brief | ||
| FOR 2012 L1/2 FIRSTS ONLY: If you have not achieved the Level 2 criteria, your work will be assessed to determine if the following Level 1 criteria have been met. | ||
| To achieve the criteria you must show that you are able to: | Unit | Criterion reference |
Appendix 1
Case Study
Scenario
A business specialising in the production of collectible ornaments is considering the following three investment options:
- purchasing a used lorry (to transport products to more wholesalers and retailers)
- upgrading/expanding the warehouse
- purchasing new machinery
The cost of the used lorry is £23,000 and the cost of upgrading the warehouse is £52,000. The third option of purchasing new machinery is £30,000.
The estimated annual returns (net cash flows) for each project are provided in the table below:
| Year | Estimated Annual Returns | ||
| Used Lorry* | Upgrading the Warehouse | Purchasing new machinery | |
| 0 | (£23,000.00) | (£52,000.00) | (£30,000.00) |
| 1 | £11,000.00 | £18,000.00 | £15,000.00 |
| 2 | £11,000.00 | £18,000.00 | £15,000.00 |
| 3 | £10,000.00 | £16,000.00 | £10,000.00 |
| 4 | £10,000.00 | £13,000.00 | £9,000.00 |
| 5 | £10,000.00 | £12,000.00 | £8,000.00 |
| 6 | – | £12,000.00 | – |
| 7 | – | £10,000.00 | – |
*2017 Renault Range D26 Wide
Based on the predicted cost of borrowing over the next five years at least, the business plans to use a discount factor of 5% as follows:
| Year | Discount Factor (for 5%) |
| 0 | 1.00 |
| 1 | 0.952 |
| 2 | 0.907 |
| 3 | 0.864 |
| 4 | 0.823 |
| 5 | 0.784 |
| 6 | 0.746 |
| 7 | 0.711 |
| ASSESSMENT RECORD SHEET | |||
| Programme | Pearson BTEC Level 3 National Foundation Diploma in Business Pearson BTEC Level 3 National Extended Diploma in Business | Learner name | |
| Assignment title | Assignment 2: Investment Appraisal Methods | Assessor name | Ganesh Persaud |
| Unit no. & title | Unit 13 Cost and Management Accounting | Targeted learning aims/ assessment criteria | D |
| First Submission | |||
| Deadline | 23/05/2022 | Date submitted | |
| Targeted criteria | Criteria achieved ? Y=Yes N= No NYA = Not Yet Achieved NA= Not Attempted | Assessment comments | |
| 13/D.D3 | Evaluate the long-term capital investment proposal, taking into account both financial and non-financial considerations and formulate a set of appropriate and relevant recommendations. | ||
| 13/D.M4 | Analyse the results of the capital investment appraisal for decision making. | ||
| 13/D.P7 | Explain how non-financial considerations affect capital investment proposals. | ||
| 13/D.P6 | Apply investment appraisal methods to alternative capital investment proposals in given scenarios. | ||
| General comments | |||
| Please ensure that you read all the feedback comments made regarding your work carefully, considering that they may be placed throughout the text. You should then target any repeated issues, so that they do not occur again in any future work. Also consider that not all instances of Spelling, Punctuation and Grammar errors may have been highlighted, as it is your responsibility to address these. To improve work in future please read the following recommendations, turn them into SMART targets entered on ProPortal and achieve them. | |||
| Learner Declaration | I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. | ||
| Learner signature | Date | ||
| Assessor declaration | I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. | ||
| Assessor signature | Date | ||
| Date of feedback to learner | |||
| Resubmission authorisation by Lead Internal Verifier* | Date | ||
| * All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per assignment, providing: ● The learner has met initial deadlines set in the assignment or has met an agreed deadline extension. ● The tutor considers that the learner will be able to provide improved evidence without further guidance. ● Evidence submitted for assessment has been authenticated and accompanied by a signed and dated declaration of authenticity by the learner. **Any resubmission evidence must be submitted within 15 working days of receipt of results of assessment. |
| Assignment title | Assessor name | ||
| Unit no. & title | Targeted learning aims/assessment criteria | ||
| Retake | |||
| Deadline | Date submitted | ||
| Targeted Pass criteria | Criteria achieved? Y=Yes N= No NYA = Not Yet Achieved NA= Not Attempted | Assessment comments | |
| General comments | |||
| Learner Declaration | I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. | ||
| Learner signature | Date | ||
| Assessor declaration | I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. | ||
| Assessor signature | Date | ||
| Date of feedback to learner |
| RETAKE ASSESSMENT RECORD SHEET | |||
| Programme | Learner name |
| Resubmission | |||
| Deadline | Date submitted | ||
| Targeted criteria | Criteria achieved? Y=Yes N= No NYA = Not Yet Achieved NA= Not Attempted | Assessment comments | |
| General comments | |||
| Learner Declaration | I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. | ||
| Learner signature | Date | ||
| Assessor declaration | I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. | ||
| Assessor signature | Date | ||
| Date of feedback to learner |
