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    Financial Analysis for Next Plc and Marks & Spencer

    Brief :

    Section A (2,000 words)

    You are required to evaluate the financial statement of a Marks and Spencer Conduct you research on the basis of annual reports which is published on company;s website. Also, highlight the financial soundness of the your chosen company since last four accounting year. You must compare the performance of the company with its competitors.

    Required

    • Overview of the company, its nature and financial position over the last four accounting years.
    • Evaluate the liquidity, activity, debt, profitability and market ratios.
    • Produce a trend analysis which highlight the financial performance of the business over last four financial years.
    • Identify overall conclusions and recommend the steps which must follow for increasing the financial performance in the future.  

    Structure format

    • Executive Summary
    • Contents page
    • Introduction
    • Main body (with section headings)
    • Conclusion & Recommendations
    • Reference List
    • Appendices

    Section B

    Answer any one of the below questions.

    Problem 1

    What is the NPV for a project if its cost of capital is 12 percent and its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and ($1,300,000) in year 4?

     

    Picture3 

    Problem 2

    Calculate the future value of $4,600 received today if it is deposited at 9 percent for three years.

    Picture2.png 

     

    FVn = future value at the end of period n

    PV = initial principal, or present value

    r = annual rate of interest paid. (Note: On financial calculators, I is typically used to represent this rate.)

    n = number of periods (typically years) that the money is left on deposit

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