The company of your choice is considering a few investment opportunities. Some initial forecasts
have been gathered, but specific analysis has yet to be undertaken. The Finance Director wishes
to communicate the potential usefulness of specific finance models as tools for analyses.
However, the Director also wishes to emphasise the limitations of such model applications to the
market environment. It is when these two focuses are understood that decision-makers are best
prepared.
You have been asked to prepare a report that discusses these focuses in the context of a few
investment opportunities for your chosen company. You should select three relevant finance
models to form the basis of your discussion. The forecast data provided should be used to conduct
an illustrative initial valuation. This should be presented as an appendix to your report and used
as supporting evidence to the main body text.
The report will be presented by the Finance Director to the Senior Management Committee
responsible for the investment decision-making.