Klopp Stars Plc is one of the top five supermarkets in UK.Although someone says it might have stock down, it has bright future development to seize more market share in the competitive market. So Klopp is going to under an expansion for its project. So it will analysis this project content, try in the first part the WACC of the firm will be calculated using evaluated data, and in the next part some techniques to analysis figures to decide whether this project should be accepted by calculating the payback period of this project and also calculating net present value as well as the internal rate of return. In the third part, the sensitivity analysis will be used to comment on whether the project is good and also gives brief suggestions in order to increase the total project value of the firm. Then a risk analysis will be explained to make a further analysis of the project. With the change of the variables, find out the results of decision. Finally, a final recommendation and suggestion of the project and company future development will be given to conclude all these analyses.
It makes an assumption that the WACC don’t change in those years. It try to set the WACC as the discount rate, always analysis the ten years data of the company and project,because it calculate the discounted cash flow is about 9.6 year.