Financial Performance Analysis Task: Analyse financial performance of Aviva and Prudential Plc over the three most recent consecutive financial periods (e.g., 2021/2022, 2022/2023, 2023/2024) using 10 accounting ratios.

Assignment Tasks

SECTION A

Question 1: Financial Performance Analysis

Task: Analyse financial performance of Aviva and Prudential Plc over the three most recent consecutive financial periods (e.g., 2021/2022, 2022/2023, 2023/2024) using 10 accounting ratios.

Ratios Required:

• At least two from profitability
• At least two from liquidity
• At least two from gearing
• At least two from efficiency
• At least two from investment

Instructions:

1. Calculate the ratios : include calculations and sources of financial statements (do not copy directly).
2. Use charts to compare performance across the periods.

Interpretation:
i. What do the ratios reveal? Include strategic significance.
ii. Explain movement trends and the impact of business environment changes and internal initiatives.
iii. Justify which company is better for long-term investment, including industry insights.

Question 2 Blockchain and Financial Fraud

Task: Analyse how blockchain mitigates fraud in financial transactions. Critically evaluate the safety of a blockchain finance app of your choice.

Hints:

• Use two up-to-date scholarly or practitioner articles as references.
• Discuss benefits, limitations, and risks of blockchain applications.

SECTION B

Investment Appraisal & Financial Theories

Case Overview:
X Corp is considering a renewable energy plant investment:

• Initial investment: $5 million
• Projected cash flows over 5 years:

Tasks:

• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Payback Period
• Profitability Index (PI)
• Investment Appraisal Calculations

Decision Making

• Assess whether X Corp should proceed with the investment using appraisal theory.
• Justify using NPV, IRR, PI, and Payback results.

• Discuss market, operational, and financial risks.
• Explain how risks could impact the investment appraisal.Risk Analysis

• Explain the calculation of Weighted Average Cost of Capital (WACC).
• Discuss how changes in cost of equity and debt could affect NPV and IRR.Capital Structure Theory

Formative Feedback Opportunities

• Students may submit a one-A4 page draft plan for tutor feedback by Week 6 or earlier (if agreed).
• Distance learners: submit by email two weeks before the submission deadline.
• Feedback helps students improve independent learning skills and identify areas for improvement.
• Late submissions may not be eligible for formative feedback.

Summary of Assessment Requirements

The BUS7015 Financial Management Assignment is designed to evaluate students’ knowledge and practical application in financial management, accounting analysis, investment appraisal, and digital finance technologies.

Key Points to Cover:

1. SECTION A – Financial Analysis & Blockchain
   • Question 1: Analyse financial performance of Aviva and Prudential Plc over three consecutive years using 10 accounting ratios (profitability, liquidity, gearing, efficiency, investment).
     • Calculate ratios with proper sourcing.
     • Use charts to show trends.
     • Interpret ratios and explain movements.
     • Recommend the better long-term investment.
   • Question 2: Analyse how blockchain mitigates fraud.
     • Critically evaluate a blockchain finance app.
     • Discuss benefits, limitations, and risks.
2. SECTION B – Investment Appraisal & Financial Theories
   • Case Study: X Corp’s renewable energy project.
     • Perform NPV, IRR, Payback Period, PI calculations.
     • Recommend whether to proceed based on results.
     • Analyse market, operational, financial risks.
     • Discuss WACC and impact of changes in equity and debt on NPV/IRR.
3. Formatting & Submission Requirements
   • Title page with STU number, module name, deadline, and word count.
   • Include appendices (if relevant) and AU Harvard references.
   • Maximum word count: 3,000 ±10%.
   • Anonymous marking; do not include personal names.
4. Formative Feedback
   • Optional draft plan submission for tutor feedback (Week 6 or earlier).
   • Distance learners submit drafts two weeks prior for feedback.

Academic Mentor Guidance Approach

When guiding a student through this assignment, an Academic Mentor might approach it as follows:

Step 1: Understanding Requirements

• Review the assignment brief carefully.
• Identify learning outcomes (LOs) to focus on:
  1. Critical evaluation of financial technologies.
  2. Solution design for financial challenges.
  3. Accounting and financial management in contemporary business.
  4. Importance of Big Data analysis.