MTAT.03.244: Software Economics (Fall 2015)
Homework 2: Business Case Analysis (15pts)
This assignment is based on the case study: B&K Distribution
Copies of this case study were distributed during the lecture. We cannot distribute this case study online due to copyright reasons. If you did not get a copy of the case study during the lecture, please drop an e-mail to Fredrik Milani (lastname at ut dot ee).
Perform a business case analysis for the project described in the case study. The following results are expected in your submission.
- Calculation of NPV, IRR, Payback and ROI.
- Discussion and Recommendation: The discussion should cover at least the following questions:
- Would you recommend moving forward with this project? Why/Why not? Support your recommendations with the calculations and the points you have discussed.
You will be required to present the case as if you really wanted to "sell it" to a manager at this company. This means you should describe the business, the challenges, the project and numbers and measures (NPV, IRR, payback period) and present it in a way that a business person understands it.
For the presentation, you are asked to;
- Clearly write the names of your group on the first slide
- Give a brief introdcution
- Summarise the main issues and the structure of value for the upside scenario
- Concluding remarks and your recommendation
- Limit the presentation to 8 minutes and be prepared for questions.
- Submit your calculations (excel or equivalent file as the calculations and the formulas used need to be accessible).
- Submit (word of pdf file) of max 2 pages where you answer the questions listed above.
The above documents are to be submitted using the "submit" button no later (firm deadline) than 26th of October 12:00 am.
Grading will be based on
- Structure, logic and clarity of your calculations. NOTE: Submissions over 2 pages will result in reduction of time (only for the discussion part of the assignment).
- The oral presentation, taking into account specifically the delivery (understandability of the presentation), structure and clarity (such as the strength of the arguments put forward during the presentation), content (the quality of the slides), how well your presentation is adapted for "the managers" and length (presentations exceeding 8 minutes will result in reduction in points).
- 26 October at 12:00 (Excel table, to be submitted using the "Submit" button)
The above deadlines are very strict.
The assignment must be completed in teams of 4 or 5 members.