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Evaluate the relative attractiveness of these three segments using the criteria included in your Segment Attractiveness Assessment Framework.

Overview of the Assignment

Successful companies operating in international markets must have a clear understanding of who their customers are and the factors that make that market unique. It is key for an entrepreneur and/or international marketer to understand customer segmentation and target marketing.

This individual assignment provides each learner with the opportunity to practice applying:

  1. The Customer Segmentation Framework, for Consumer Market, a customer segmentation tool that helps to identify and profile viable segments of customers in the given market. It also provides an opportunity to compare and assess segments in terms of their potential attractiveness using a…
  2. … Segment Attractiveness Assessment Framework, a decision matrix used to compare the relative attractiveness of potential customer segments.

Supported by secondary research, you will be using frameworks to complete your overall analysis of a specific geographic market. First, you will identify three potential customer segments in that geographic market, and then you will comparatively assess the attractiveness of each of these segments so you can make a recommendation of a primary target segment to pursue in that geographic market. You will be making the recommendation to the marketing manager of a Fortune 500 company.

Instructions

Your instructor will assign you one product from a large parent company for your analysis. Once you have been assigned the specific product you will be considering, you will need to complete the following steps:

  1. Identify a specific geographic location in which your assigned company could potentially market the product. As you see fit, you may choose a country, region, or city. Make your choice based on your ability to reasonably identify and find information on three distinct potential customer segments in that geographic market. In your actual paper, you do not need to explain your choice of geographic location.
  2. Identify and develop a profile for each of three distinct potential customer segments within that geographic market. You will describe the different segments using the four customer segmentation variables. (The geographic variable will be the same for all your segments, but the other three customer segmentation variables will differ by segment.) You will provide a concise but comprehensive summary of these segments and their attributes in the body of your paper, and you will provide a “Customer Segmentation Framework, for the Consumer Market” in the appendix of your paper that provides more detail on each segment. To learn enough about your chosen market such that you can identify appropriate customer segments and find uniquely relevant information to help you profile them, you will need to do secondary research.

Make sure you are using sources that are credible, relevant, and published within the last two years. Where you need to make some reasonable assumptions, state your assumptions clearly and explicitly, and provide solid rationale for these assumptions.

  1. In the next part of your paper, evaluate the relative attractiveness of these three segments using the criteria included in your Segment Attractiveness Assessment Framework. You will provide a concise but comprehensive summary of your analysis comparing the attractiveness of these segments in the body of your paper, and a “Segment Attractiveness Assessment Framework” in the appendix of your paper that provides more detail. Here, too, you will need to justify your analysis with information from your research.
  2. Based on your analysis of their relative attractiveness, you will recommend to the parent company of your assigned product which of the three segments you believe is the most appropriate as the primary target market, followed by the secondary market, and then tertiary market. To justify this recommendation, you will include your insights from your segment attractiveness analysis.

A suggested outline for your paper (not including your cover page, table of contents, reference page(s) and appendices) is as follows:

  • Brief introduction to your paper, and your assigned company and product
  • Customer Segment Descriptions
  • Segment Attractiveness Analysis
  • Recommendation(s)

Based on your application of the life cycle to the initiative, analyze how the life cycle will help you infer predictability, performance, quality, and security of your initiative and its results.

Company is Amazon

For this milestone, submit Sections A–D of the proposal portion of the final project (Part II).
Specifically, the following critical elements must be addressed:
II. Proposal
A. Goals: What are the goals of this initiative? How do they align with the organizational mission? And how do you plan to measure success? Be sure to consider the progress and pathway for data analytics projects of the type you chose to propose.
B. Data Analytics Life Cycle: Apply the data analytics life cycle to your proposed initiative, and walk your audience (management) through the life cycle as it applies to the initiative.
C. Value of Life Cycle: Based on your application of the life cycle to the initiative, analyze how the life cycle will help you infer predictability, performance, quality, and security of your initiative and its results.
D. Data: Evaluate the existing or desired data for its applicability to your proposed data analytics initiative. In other words, what are the benefits and limitations of the current data for the use you have in mind, including potential collection and security implications?
Guidelines for Submission: Milestone Two should be submitted as a formal report or presentation, as chosen in Module One. Make sure to address all of the critical elements in the prompt.

Discuss how the chosen standards and problems build student understanding of plane geometry or measurement of plane figures across the three K–6 grade levels selected in part A1.

A. Study the plane geometry or measurement of plane figures content standards for your state and do the following:

1. List three content standards from your state that apply to plane geometry or measurement of plane figures for grades K–6. The three selected standards must represent three different grade levels.

2. Write a sample problem for each of the three standards to illustrate the evolution of student understanding.

3. Provide a solution for each problem that demonstrates each step or explains the thinking process involved in determining the solution.

4. Discuss how the chosen standards and problems build student understanding of plane geometry or measurement of plane figures across the three K–6 grade levels selected in part A1.

B. Watch the “A Table for 22” video and do the following:

1. Describe one instructional strategy the teacher successfully incorporates in the geometry lesson and explain how it helped students develop a deeper understanding of plane geometry.

2. Explain how you could incorporate one strategy from this lesson into your own instructional practice.

3. Describe how you would modify this lesson for students with special needs.

C. Prepare to create an original lesson plan on plane geometry or measurement of plane figures by doing the following:

1. Describe an evidence-based instructional strategy that will be incorporated into your original lesson plan.

a. Explain why the chosen instructional strategy would be beneficial in a lesson on plane geometry or measurement of plane figures using evidence from a credible source to support your selection.

D. Using the attached “Direct Instruction Lesson Plan Template,” design an original lesson plan for elementary (K–6) mathematics that addresses the topic of plane geometry or measurement of plane figures. Submit the lesson plan as a separate document from parts A–C.

Note: The lesson plan should be detailed, complete, descriptive, and reflective. As a general rule, include enough detail so that a non-mathematics substitute teacher could teach the lesson using your plan.

1. In the “Instructional Strategies and Learning Tasks” section of the lesson plan template, identify the instructional strategy that was selected in part C1 and explain how it was incorporated into the lesson.

E. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.

F. Demonstrate professional communication in the content and presentation of your submission.

In view of current and potential future privacy concerns, do computer scientists and engineers have a responsibility to consider users’ privacy when developing software and hardware products?

Discuss the extent to which, as a result of technology use and data-gathering, individuals today can be said to enjoy privacy.

How will forthcoming developments in technology impact individual privacy? In view of current and potential future privacy concerns, do computer scientists and engineers have a responsibility to consider users’ privacy when developing software and hardware products?

What specific strategies will you use to provide universal access to learning? How will you design your lessons to meet their needs?

(3RD GRADE)
Imagine that 15 children are at different stages of literacy development in your primary classroom.

What specific strategies will you use to provide universal access to learning?
How will you design your lessons to meet their needs?
Respond.

What are the importance weights of the different attributes for the average customer based on the results in Table 7?

Product Design and Sales Predictions (45 points)

CleanAir Controls is evaluating the opportunity to enter the US air pollution control system market with one or more offerings. Tighter environmental regulations have created this opportunity. There are currently three major competitors in the US that differentiate themselves along four major attributes: efficiency, delivery time, price, and delivery terms (see Table 3). The challenge for CleanAir is to determine what new product(s) to offer, to which market segment(s), and with what selling proposition(s), in order to achieve success in the US market. You will need to justify the recommended entry strategy by demonstrating forecasted marginal contributions in excess of $4 million per year to support the new offering(s).

Through other divisions, the firm has good access to US distribution channels. Most importantly, through some closely related divisions, it has an extensive network of US-based service representatives who can be called upon to provide a higher level of service to their customers and prospects in this marketplace. CleanAir also has reason to believe that its product is less likely to need costly service than those of competitors. In fact, some of its product development engineers and managers have been urging CleanAir to consider a warranty of up to 2 years. However, the company has little understanding of how much customers would be willing to pay for such a warranty (60 days was industry standard).

The most popular size and capacity for a system is 50,000 SCFM (Standard Cubic Feet per Minute); it is a basic design decision across all offerings. Market research indicated that there would be annual demand for about 300 units of that size in the US over the next decade or so. Thanks to new technical developments in Germany, CleanAir is able to credibly offer a system that exceeds regulation specification by up to 9%.

Initially, it was thought that a “Base Model” was the best way to begin understanding how the US market operated. Some team members, however, argued that an even more rudimentary product but with a 2-Year warranty (Servair DX) could be more profitable. It would also open the possibility for a product to compete with Thermatrix, using CleanAir’s service network (Premier LX). This option would be considerably more expensive and launching more than one product would result in an additional fixed cost of $3 million. In the end, CleanAir settled on three options for consideration to be launched in the US market (see Table 4).

To help guide its market entry decisions, the company decided to conduct a conjoint analysis study to understand the important tradeoffs that potential customers make in purchasing such air cleaning systems. The objective of the conjoint study was to identify attractive target segments and the kinds of features that customers in those segments would prefer to have in the new system. It was to be a main source of information support for the business case that the team was asked to make (see Table 5 for the different attribute levels used in the study). The estimated cost implications of different attribute options relative to the base option of the “Base model”, which was estimated to cost $500,000, are shown in Table 6.

The conjoint study collected data from 31 companies, a representative sample of the target industries for the offering, focusing heavily on the food and energy sectors. Their responses could be used to make volume and profit estimates. Table 7 shows the part-worth estimates for the entire sample. Tables 8 to 10 show the predicted market shares for different options based on the conjoint analysis results.

Using the individual part-worths, the market research company segmented the respondents and identified two clear segments. Most firms in Segment 1 are in the Energy industry (35% of customers); many of those in Segment 2 are in the Food industry (65% of customers). Segment 1 firms are much larger (in terms of sales and number of employees), and more profitable, with the purchasing decision process dominated by Finance and Purchasing. In contrast, Segment 2 firms are faster growing, and the purchasing decision process is dominated by Top Management and by Engineering. The part-worths for the two segments in Table 11 show shows that Segment 2 firms seek a system that clearly exceeds EPA requirements and values having it installed quickly. Segment 1 firms are far more concerned about financial issues. The predicted market share for a targeted approach with different products for the two segments are shown in Table 12.

Questions

  1. What are the contribution margins for the three different options shown in Tables 4 and 6? (3 points)
  2. What are the importance weights of the different attributes for the average customer based on the results in Table 7? (5 points)
  3. The market research company used a ‘first-choice rule’ to predict market shares from the conjoint results. Given the type of product market, is this rule appropriate or not? Explain. (5 points)
  4. How would you use the market share results shown in Table 8? (3 points)
  5. If CleanAir launched only one option of the three under consideration, which one should it launch, given the results in Table 9? Why? (7 points)
  6. Would it make sense for CleanAir to launch both Servair DX and Premier LX, given the results in Table 10? Why? (5 points)
  7. Is a targeted approach preferred to launch either just one option (part e) or two options without segmentation (part f) given the results in Table 12? Why? (5 points)
  8. Given the results in Table 11, what is the $-value of 2-year warranty over a 1-year warranty for segment 1 and segment 2 customers, respectively? Should CleanAir offer a 2-year warranty, a 1-year warranty or no warranty (service contract only) in any of the options? Why (7 points)
  9. As Thermatrix, how would you react to your proposed entry strategy for CleanAir? Why? (5 points)

 

 

 

Table 3: Current Products in the US Market

Competitor Efficiency Delivery
Time
Price Delivery
Terms
Wastewatch Exceeds Specs
by 5%
9 Months $600K FOB
with Service Contract
Thermatrix Exceeds Specs
by 9%
12 Months $900K FOB
with Service Contract
Advanced Air Meets Specifications 9 Months $600K Installed
with Service Contract

FOB = “Free on Board” and means the buyer pays for delivery. “Installed” means the supplier pays for delivery.

Table 4: Considered New Product Options for US Market

Model Efficiency Delivery
Time
Price Delivery
Terms
Servair DX Meets Specifications 15 Months $900K Installed
with 2-Year Warranty
Premier LX Exceeds Specs
by 9%
12 Months $900K Installed
with Service Contract
Base Product Exceeds Specs
by 5%
12 Months $700K Installed
with Service Contract

Table 5: Attribute Levels for Conjoint Study

Efficiency Delivery
Time
Price Delivery
Terms
Exceeds Regulation Target
(Specification) by 9%
6 Months $600K Installed
with 2-Year Warranty
Exceeds Regulation Target
(Specification) by 5%
9 Months $700K Installed
with 1-Year Warranty
Meets Regulation Target
(Specification)
12 Months $800K Installed
with Service Contract
Short of Regulation Target
(Specification) by 5%
15 Months $900K FOB,
with Service Contract

Table 6: Incremental Cost Estimates of Different Attribute Levels

Efficiency Incremental Cost Delivery Time Incremental Cost Delivery Terms Incremental Cost
Exceeds by 9% +$170K 6 months +$40K Installed,
2-Year War.
+$300K
Exceeds by 5% Base
Product
9 months +$20K Installed,
1-Year War.
+$100K
Meets Specs –$70K 12 months Base
Product
Installed,
w/Contract
Base
Product
Short by 5% –$90K 15 months –$10K FOB –$100K

Table 7: Part-Worth Results of Conjoint Study

Attribute Attribute Level Average Std dev. Minimum Maximum
Efficiency Exceeds by 9% 27.3 13.2 6.0 52.0
  Exceeds by 5% 16.9 10.9 2.0 40.0
  Meets specifications 8.4 7.6 0.0 40.0
  Short by 5% 0.0 0.0 0.0 0.0
Delivery 6 months 31.2 13.3 10.0 55.0
Time 9 months 19.1 10.5 5.0 45.0
  12 months 9.2 5.6 2.0 20.0
  15 months 0.0 0.0 0.0 0.0
Price $600K 18.6 12.6 2.0 50.0
  $700K 12.6 10.3 0.0 38.0
  $800K 6.4 5.8 0.0 25.0
  $900K 0.2 0.6 0.0 3.0
Delivery Installed, with 2-year warranty 20.4 11.1 3.0 45.0
Terms Installed, with 1-year warranty 13.9 9.0 3.0 40.0
  Installed, with service contract 5.6 3.7 0.0 16.0
  FOB, with service contract 0.0 0.0 0.0 0.0

Average:                Average part-worth for all respondents

Std.Dev.:               Standard deviation of part-worth over all respondents

Table 8: Market Share Results for Current Options

Wastewatch Thermatrix Advanced Air
Predicted 48.9% 5.4% 45.7%
Actual 50.0% 5.0% 45.0%

Table 9: Predicted Market Share Results with New Products Added

Wastewatch Thermatrix Advanced Air New product
Base predictions 48.9% 5.4% 45.7% N/A
…with Servair DX 44.6% 4.3% 38.2% 12.9%
…with Premier LX 43.8% 0.8% 34.1% 21.2%
…with Base model 45.7% 5.4% 39.2% 9.7%

 

 

Table 10: Predicted Market Share Results with Two Products Added

Wastewatch Thermatrix Advanced Air Servair DX Premier LX
Prediction 39.8% 0.0% 30.1% 12.9% 17.2%

Table 11: Part-Worth Results by Segment

Attribute Attribute Level Population Segment 1 Segment 2
Efficiency Exceeds by 9% 27.3 15.6 32.1
  Exceeds by 5% 16.9 6.1 21.3
  Meets specifications 8.4 4.2 10.0
  Short by 5% 0.0 0.0* 0.0*
Delivery 6 months 31.2 17.3 36.8
Time 9 months 19.1 10.1 22.8
  12 months 9.2 6.4 10.3
  15 months 0.0 0.0* 0.0*
Price $600K 18.6 28.6 13.6
  $700K 12.6 20.3 8.8
  $800K 6.4 5.8* 6.7*
  $900K 0.2 0.0* 0.4*
Delivery

Terms

Installed, with 2-year warranty 20.4 29.3 16.8
  Installed, with 1-year warranty 13.9 19.6* 11.6*
  Installed, with service contract 5.6 4.33* 6.09*
  FOB, with service contract 0.0 0.0 0.0

* not significantly different between segments

Table 12a: Predicted Market Share Results for Segment 1

Wastewatch Thermatrix Advanced Air Servair DX
Prediction 5.6% 0.0% 61.1% 33.3%

Table 12b: Predicted Market Share Results for Segment 2

Wastewatch Thermatrix Advanced Air Premier LX
Prediction 53.8% 0.0% 17.4% 28.8%

Demonstrate self-direction and originality in tackling and solving problems, and act autonomously in planning and implementing tasks at a professional level.

NOTTINGHAM TRENT UNIVERSITY

SCHOOL OF ANIMAL, RURAL AND ENVIRONMENTAL SCIENCES

MSc & MRes, Biodiversity Conservation

LEVEL 7

Protected Species Surveying ARES40110

Assignment Title: Principles of wildlife surveys

Your summative assessment must only be submitted electronically, as a Word document to the Dropbox in NOW on or before the date for submission

Aims

Analyse the data from one of the wildlife surveys listed below and use the results to draw appropriate conclusions about the survey giving a critical evaluation of the survey method.

Tasks (objectives)

  1. Select one of the following surveys:
  • Multi-species mammal monitoring with cameras
  • Great crested newt population monitoring
  • Bird territory mapping (yellowhammers)
  1. You will be given data from previous years (for camera trapping and great crested newt monitoring) or that has been created for the purposes of this task (yellowhammer territory mapping).
  2. Working individually, introduce the chosen survey and research question to be answered.
  3. Describe the methodology used and justify the method, timing and survey effort used.
  4. Analyse the data.
  5. Report your findings in the style of a scientific report, highlighting the limitations of your study, including a critical evaluation of the survey method used, and compare your findings with the literature.

Further guidelines

Critically evaluate the importance of the survey method in relation to the validity of the survey results. The advantages and disadvantages of the survey method and the quality and types of data it produces should be discussed in context of the aims of any survey. You are also required to produce firm conclusions about the importance of your topic to produce accurate or precise survey data.

Suggested reading and sources of information (A full and comprehensive reading list can be found on the Resource List on NOW)

Sutherland W.J. (2006) Ecological Census Techniques: A Handbook. 2nd Edition. Cambridge University Press.

Assessment Scheme

Equal weighting will be given to each of the sections listed in the assessment grid. The report contributes 100% of the module grade.

Module Learning Outcomes Addressed

  • Demonstrate in-depth knowledge of most recent developments in wildlife survey techniques and methods used to survey and protect wildlife.
  • Critically evaluate current survey methods and techniques for wildlife surveying used in population monitoring.
  • Communicate scientific information to a wider audience
  • Carry out surveys of specific faunal taxa.
  • Communicate scientific information to a wider audience.
  • Collect and integrate information from a variety of sources with a multidisciplinary approach and apply knowledge gained in practice.

Course Specific Learning Outcomes

  • Demonstrate a systematic comprehensive knowledge of taxonomic and survey techniques used by conservation practitioners.
  • Analyse current biodiversity conservation issues and priorities at local, national,

European and global level and critically assess law and policy relating thereto in terms of its doctrinal and practical coherence.

  • Critically evaluate techniques used to survey specific taxa and extrapolate from

existing research and scholarship to identify new or revised approaches to surveying and the analysis of data.

  • Evaluate the rigour and validity of published research and assess its relevance to new situations.
  • Demonstrate the ability to recognize, apply and address ethical dilemmas and

corporate social responsibility issues, applying ethical and organizational values to situations.

  • Deal with complex issues both systematically and creatively, make sound judgements in the absence of complete data, and communicate conclusions clearly to specialist and non-specialist audiences.
  • Demonstrate expertise in advanced research, technical, communication and professional skills.
  • Demonstrate self-direction and originality in tackling and solving problems, and act autonomously in planning and implementing tasks at a professional level.

Extenuating Circumstances

If you believe that you are not going to meet a deadline due to exceptional circumstances beyond your control, then you may apply for an extension through the Notification of Extenuating Circumstances (NEC) procedures (https://www4.ntu.ac.uk/current_students/resources/student_handbook/notification_of_extenuating_circumstances/index.html). Extensions to deadlines due to extenuating circumstances can only be authorised by one of the School’s NEC Contacts. Documentary evidence is required to support claims. Please note that Course and Module Leaders CANNOT authorise extensions.

Specific Penalties

  • Assessments that are submitted up to five working days after the submission deadline will be entitled to a maximum grade of a low pass.
  • Assessments that are submitted more than five working days after the submission deadline will be awarded a grade of zero.
  • The submission deadline relates to both the submission of a paper copy and the submission of an electronic copy of the assessment, if required.
  • Failure to acknowledge sources, both in the text and in the reference list, may incur a penalty. For further details, see the University’s guidance on referencing (https://now.ntu.ac.uk/d2l/lor/viewer/view.d2l?ou=6605&loIdentId=25435).

Identify a major possible uncertainty or risk event with potential major positive or negative impact on selected objective, e.g. technical, safety, commercial, etc.

Task: Project Risk Management Plan (RMP) Development

Overview:

Sydney Metro is one of Australia’s biggest public transport project in 2018. The new standalone railway will deliver 31 metro stations and more than 66km of new metro rail. Sydney Metro, together with signalling and infrastructure upgrades across the existing Sydney rail network, will increase the capacity of train services entering the Sydney CBD – from about 120 an hour today to up to 200 services beyond 2024.

As part of the team working on the project’s Final Business Case (FBC) for funding purposes, you have been assigned to develop the Risk Management Plan (RMP) for the defined scope of project below from either government or general Design and Contract (D&C) contractor perspectives. You are required to research and find more details of this major project in order to successfully complete the assignment. The selected scope of project for this assignment are three parts of Victoria Cross Station, Barangaroo Station and the connecting tunnels between these two stations.

Objectives:

  • Demonstrate the significance of Risk Management Plan (RMP) to construction projects
  • Develop and implement a proactive risk management process in construction projects aligning with risk management standards of AS/NZS ISO 31000, ISO 31010, and Risk Engineering Society (RES) Contingency Guideline 2019
  • Follow risk assessment process including selection and application of appropriate risk analysis
  • Address the different key aspects of risk management within the project team including risk culture, risk appetite, risk perception, risk communication, risk threshold and risk exposure
  • Apply a variety of risk treatment techniques and address optimum action plan decision making
  • Identify, interpret and analyse stakeholder needs and expectations
  • Identify constraints, uncertainties, risks and opportunities of the project (commercial, social, cultural, legislative, safety, environmental, business, etc.)

Instructions:

  • Establish an appropriate risk management context, including likelihood and consequence criteria, escalation table, etc.
  • Identify a major possible uncertainty or risk event with potential major positive or negative impact on selected objective, e.g. technical, safety, commercial, etc.
  • Prepare a Risk Management Plan (RMP) in accordance with AS/NZS ISO 31000:2018
  • Define the project boundaries and objectives carefully; you may need to simplify and define the boundaries of your report (for example “looking only at commercial risks” only) in order to achieve the word limit.
  • Include relevant literature review.
  • Show evidence of consideration of alternatives for risk management.
  • Clearly state the risk tolerability criteria employed
  • Reference correctly – not referencing sources correctly can lead to a mark deduction, and not referencing sources at all (including pictures, diagrams, and photographs) can be seen as plagiarism and can lead to disciplinary action.

Calculate the time constant of each circuit and use the graph to determine two points separated by RC value.

RC Circuits

https://phet.colorado.edu/en/simulation/legacy/circuit-construction-kit-ac-virtual-lab

Press the down arrow on the picture

Then open the file

Connect the circuit shown on the white board or the attached picture

Notice that there are two switches S1 is in series with the 18 volt battery

S2 is in series with  a 100 ohm resistor ( which you can set).

Make the capacitance 0.2 or maximum

Leave S2 open connect a voltmeter across the capacitor and notice that it will record 18 volts as the capacitor will charge quickly.

Bring a timer the (yellow stopwatch shown), or use the stopwatch on your phone

Open S1 and notice that the voltage remains at 18 volts as long as S2 is open because the capacitor keeps the charge on the capacitor,

Close the switch S2 and start the timer as soon as possible and record the value of the voltage at that time and then every 5 second.

Make a table of the voltage across the capacitor as a function of time

Get around 12 readings or more.

Plot a graph of Vc on the y axis with time on the x-axis. You can ignore the first or the second reading and start the graph making the third reading represents the voltage at t=0 (if it is difficult for you to get the value of Vc and time together for the first or second points) practice or cooperate with your partner first.

Repeat the above using a resistor of 60 ohms.

Plot the two graphs on the same graph paper or screen if you can

Choose two voltages on the first graph and calculate the time between them from the graph.

Use the discharge equation to find the value of the capacitor and compare it with the value you have.

Repeat  the above procedure using R = 60 ohms and draw a second graph.

Find the average value of the capacitor and compare with value you have. Find percentage error.

Calculate the time constant of each circuit and use the graph to determine two points separated by RC value and look at the difference in voltages that correspond to RC on the graph and find the ratio of

Final voltage/initial voltage

Do this for the second graph.

Look at the example on the white board.

Submit individually or in groups of two

Explain what the entrepreneur’s financial restructuring AT- WACC (% Debt and % Equity) need to be in order to create a positive ROI.

Instruction Attached at bottom.
Assessment: The Angel Investor

This Competency Assessment assesses the following outcome:

MT480M6: Incorporate the combined attributes of debt and equity given a cost of capital model.

The concept of after-tax Weighted Average Cost of Capital (WACC) is a common issue when studying finance at all levels. The impact of taxes, applicable to most forms of financing is a key component of studies in the field of finance. The Assessment questions will present the opportunity to assess and build upon your knowledge of and ability to calculate the after-tax WACC and the cost of debt and equity.

Read the fictional scenario and respond to the checklist items in this written Assessment.

Scenario: As an Angel Investor you have been asked to assess an entrepreneur’s product and financing options. In your role as an Angel Investor you focus on one year at a time. The entrepreneur asks for $100,000 immediately to purchase a diagnostic machine for a healthcare facility. The entrepreneur hopes to be financed with 60 percent debt and 40 percent equity. As the entrepreneurs’ venture capital partner, you assign a cost of equity of 15% and a cost of debt at 10%. You require a Return on Investment (ROI) of 8%. You are using an After Tax Weighted Average Cost of Capital (AT- WACC) model. A 35% marginal tax rate is applied Address the following checklist items:

Checklist:

Explain the tax benefits of debt financing.
Calculate the AT- WACC with a 60% debt and 40% equity financing structure.
Apply the calculated AT-WACC to explain why this is or is not a viable investment for you as the Angel Investor.
Explain what the entrepreneur’s financial restructuring AT- WACC (% Debt and % Equity) need to be in order to create a positive ROI.
Explain why you as the Angel Investor would require more or less debt versus equity financing. Be sure to note the nature of the claims on assets in times of a bankruptcy.
Submit your response in a minimum of a 2-page APA formatted Microsoft® Word® document to the Dropbox with additional title and references pages.
Access the rubric

Minimum Submission Requirements

Address all the checklist items.
Include a strong thesis statement, introduction, and conclusion. The main points of the response should be developed and explained clearly in the denial letter with appropriate financial and accounting terminology.
Your content should follow proper APA citation style. For assistance with APA formatting, go to the Writing Resources accessed through the Academic Success Center within the Academic Tools area of the course. APA formatting dictates that your paper includes a cover sheet (i.e., title page), the paper is double spaced, in Times New Roman 12-point font, with correct citations, uses Standard English with no spelling or punctuation errors.
If work submitted for this competency assessment does not meet the minimum submission requirements, it will be returned without being scored.