Question (1):
Evaluate the relative arguments for a firm choosing between internal and external sources of
long-term finance. Illustrate your answer with analysis of at least four examples of finance
sources; two as internal finance sources and two as external.
Question (2):
Investment decisions and investment appraisal are critical issues to any business, do research
and write an essay of 750 words in total, covering the following 3 topics.
1. Critically discuss the nature and importance of investment decision making and why
the long-term investment decisions are crucial to businesses.
2. Explain the four major investment appraisal methods with referring to the advantages
and disadvantages of each.
3. How to apply each of the four investment appraisal methods to accept or reject a
project? What is the acceptance rule of each?
Marking and Feedback:
Marking will be done in accordance with the marking criteria grid below and the University
of Portsmouth grading criteria for UG level 5. Marks will be released on 2nd July in line with
the 20 working day policy.
Standard level 5 marking criteria applicable to the assessment:
80+% As below plus:
• Excellent work which contains relevant material & shows analysis, originality or
creativity of approach and a clear, well- articulated understanding of the subject
matter
• Wide research incorporating up to date, relevant original material. Accurate citation
and use of references.
• Excellent with few or no errors in organisation, structure, grammar, spelling,
punctuation, use of diagrams & tables
70-79% As below plus:
• Very good work which is clearly written, well-argued and covers the subject matter in a
thorough, thoughtful and competent manner. Contains some originality of approach,
insight or synthesis.
• Good evidence of research and good use of source material. Good use &
presentation of references
• Very good presentation, presentation, organisation, grammar, spelling, punctuation,
diagrams and tables
60-69% As below plus:
• A very good, well presented piece of work covering much of the subject matter and
which is clearly and lucidly written. Good attempt to consider and evaluate the
material presented
• Evidence of research in the topic area and satisfactory use of sources and
references
• Good organisation, structure, use & flow of language, grammar, spelling, format,
diagrams, tables etc
50-59% As below plus:
• Work that demonstrates understanding of the topic area with some attempt to
discuss material
• Evidence of research in the topic area extending beyond key texts
• Satisfactory presentation &/or use of references/bibliography according to
convention
• A satisfactory attempt to follow directions regarding organisation, structure, use &
flow of language, grammar, spelling, format, diagrams, tables etc The majority of
students would normally be expected to fall within this range
40-49%
• Adequate work that attempts to address the topic & demonstrates some
understanding of the basic aspects of the subject matter
• Topic is researched using mainly books & Internet. Attempts to use &/or present
references/bibliography according to convention
• A basic attempt to follow directions regarding organisation, structure, use & flow of
language, grammar, spelling, format, diagrams, tables etc
30-39% FAIL
• Work in this range attempts to address the question/problem but is substantially
incomplete and deficient. Serious problems with a number of aspects of language use
are often found in work in this range and the work may be severely under/over- length
and/or fails to grasp the nature of the topic matter. Content, analysis, expression,
structure and use of sources will be very weak or missing
0-29% FAIL
• No serious attempt to address the question or problem, and/or manifests a serious
misunderstanding of the requirements of the assignment. Acutely deficient in all
aspects.