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Page 1 XXXXXXXXXXKaplan Business School Assessment Outline Assessment 3 Information Subject Code: MBA643 Subject Name: Project Initiation, Planning and Execution Assessment Title: Individual Report...

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Page 1 XXXXXXXXXXKaplan Business School Assessment Outline

Assessment 3 Information


Subject Code: MBA643
Subject Name: Project Initiation, Planning and Execution
Assessment Title: Individual Report
Assessment Type: Report
Word Count: 1000 Words (+/-10%)
Weighting: 40 %
Total Marks: 40
Submission: Via Turnitin,
Due Date: Monday, Week 13, 23:55pm AEDT
Your Task
This assessment is made up of two parts:
• Part A students are asked to imagine they have been engaged by a Renewable Energy (utilities)
company to develop a report on key aspects of project risk management and how they might be
used in proposed future projects in order to manage and limit risk.
In Part A you are asked to write a report based on one of the below companies:
Infigenergy: https:
www.infigenenergy.com/
Tilt Renewables: https:
www.tiltrenewables.com/
The company you will analyse will depend on the LAST digit of your student number:
o 0 and 5 = Infigenergy
o 6 and 9 = Tilt Renewables
• In Part B you are asked to conduct a capital budgeting analysis for the second company Tilt
Renewables. Answer the short answer questions.


https:
www.infigenenergy.com
https:
www.tiltrenewables.com

Page 2 XXXXXXXXXXKaplan Business School Assessment Outline
Assessment Description.
PART A (20 marks)
The report should begin with a short executive summary and conclude with several, short general
ecommendations. The content you include in the report should link the project management principles
detailed below with the practices of the renewable energy company you have been allocated.
The topics on which students need to make recommendations in their report include:
i) Project selection – How should the company you select determine what projects to undertake and
what ones to avoid? What tools, measures, and practices are available to project analysts in this
industry?
ii) Cost management – What is the role of project cost management for your chosen company? Why is it
important? What strategies or approaches should the company you have chosen adopt in order to
effectively manage project costs?
iii) Funding – What funding measures or options are generally available to assist companies like the one
you have chosen to fund proposed new projects? The report should include reference to any
implications associated with different funding types or models.
iv) Implementation and winding up – Are there any particular issues associated with commencing a
project that your company must consider? Why are they important? Who do they impact or affect?
What happens when the project finishes? How are projects wound up? Do they just end or are there
esource or infrastructure considerations? Are there environmental issues associated with the end of
a project?
Where possible, students should relate each section back to the renewable energy company they have been
allocated. The executive summary should
ing together general recommendations for the student’s chosen
company relating to i)-iv).
Students should provide between XXXXXXXXXXwords per topic, together with approximately 200 words in total for
the executive summary and final recommendations.
Page 3 XXXXXXXXXXKaplan Business School Assessment Outline
PART B (20 marks)
Consider the following three sources and answer the following questions directly. You do not need
to write a lot for each question and for some you will need to use excel calculations. Submit you
excel spreadsheet together with your report in the separate submission inbox on the
assessment table.


Source 1: Tilt Renewables Snowtown North Solar Energy Farm
https:
www.tiltrenewables.com/assets-and-projects/Snowtown-North-Solar-Energy-Farm/
Source 2: Tilt Renewables (TLT.NZ) Yahoo Finance
https:
au.finance.yahoo.com/quote/TLT.NZ/
Source 3: Tilt Renewables Financials
https:
au.finance.yahoo.com/quote/TLT.NZ/financials?p=TLT.NZ
You have been employed as a project manager by Tilt Renewables and asked to evaluate a solar
farm project at Snowtown run by Tilt Energy (See Source 1).
You have been asked to evaluate whether Tilt Renewables should undertake the Snowtown North
Solar Energy Farm based on the above sources. Assume this project has not yet been approved.
• Assume this is a twenty-five-year project.
• Consult source 1 for the estimated initial outlay/investment today (year 0)
• The investment will be depreciated on a straight-line basis over twenty five years to 0 book value.
It is estimated that the solar farm can be sold at the end of year 25 for $10 million.
• The solar farm will sell $10,000,000 worth of electricity each year into the grid from year 1-25
• Operating expenses for 25 years are $5 per solar panel per year (see number of solar panels
from Source 1)
• The tax rate is 30%. All cash flows are annual and are received at the end of the year. The
discount rate is 10%.
a) Based on the above information calculate the FCFs of the project. (10 marks)
) Calculate the NPV for the solar farm. Should Tilt Renewables undertake this project? (5 marks)
c) Does the NPV take into account the CO2 emission reductions that the project will lead to (See
Source 1)? Should it take this into account? Why or why not? (2 marks)
d) What is the debt to equity ratio in 2019 of Tilt Renewables according to source 3? How does this
compare to other utility companies? What is the cu
ent share price according to Source 2 and
when were shares first issued? (3 marks)
https:
www.tiltrenewables.com/assets-and-projects/Snowtown-North-Solar-Energy-Farm
https:
au.finance.yahoo.com/quote/TLT.NZ
https:
au.finance.yahoo.com/quote/TLT.NZ/financials?p=TLT.NZ

Page 4 XXXXXXXXXXKaplan Business School Assessment Outline
Assessment Ru
ic (Part A)

The following ru
ic will be used for Part A. Part B will be marked based on your responses to each
question.


Integrate project management theory with real-world company practices to make
actionable recommendations on below topics
Criteria Requirement Marks Available
i) Project Selection Describe tools and practices
used to select a project for the
chosen company.
Analyse an example of the
practices used by your chosen
to company to select between
projects.
XXXXXXXXXXwords
3 marks
ii) Cost Management Describe the role and
importance of a cost manager
and strategies to manage
project costs.
Recommend cost management
strategies that your company
should undertake with reference
to theory and real-world data
XXXXXXXXXXwords
4 marks
iii) Funding Describe the sources of funding
for projects and the benefits or
costs of that funding (see topic
8).
Evaluate what funding options
are available to your chosen
company and determine the
implications of these options.
XXXXXXXXXXwords
4 marks
iv) Implementation and
winding up
Outline the process and issues
associated with starting and
finishing a project.
Evaluate resource,
infrastructure and environmental
issues to do with your
company’s project
implementations and make any
elevant recommendations.
XXXXXXXXXXwords
4 marks
Page 5 XXXXXXXXXXKaplan Business School Assessment Outline

Summarise recommendations for project risk management for your company with reference
to the analysis conducted in the relevant topics
Executive Summary, Conclusion
and Recommendation
The summary should
iefly
describe the main issues you
identified in each section BUT
MOST IMPORTANTLY
ecommend to your chosen
company the main things they
MUST consider when
managing/limiting risk in a
project.
This is about applying what you
have learnt to ADVISE what key
things they need to focus om
3 marks
Conduct relevant research of project management literature and market data and
information relevant to your company. Acknowledge your sources.
Appropriate in-text Harvard
Referencing and reference list
You must reference in text and
have a reference list at the end
of your assignment.
See Harvard referencing guide
on Academic Success Centre
portal page.
2 marks
Page 6 XXXXXXXXXXKaplan Business School Assessment Outline


Important Study Information


Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.

What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?

Click here for answers to these questions:
http:
www.kbs.edu.au/cu
ent-students/student-policies/.


Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.


Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the
esources on the MyKBS Academic Success Centre page. Click here for this information.
http:
www.kbs.edu.au/cu
ent-students/student-policies
https:
elearning.kbs.edu.au/course/view.php?id=1481
Answered Same Day Jun 09, 2021 MBA643

Solution

Tanmoy answered on Jun 13 2021
143 Votes
Project Initiation, Planning and Execution – Infigen Energy
PART A
Executive Summary
Infigen is one of the fastest growing intermittent renewable energy and electricity Generator Company with fast start firming assets providing the customer with reliable and clean energy at affordable prices. It was founded in the year 2003 and is headquartered in Sydney, Australia. Most of Infigen’s energy is through wind farm portfolio. Almost 95% of the energy supplied by Infigen is renewable in nature and serves the growing energy demands of the customers. Infigen supplies energy through its owned assets as well as through long term power purchase agreement with third parties. They have the capacity to generate more than 670 megawatt of electricity through their assets. Some of their project portfolios consist of battery installation of 25 megawatt battery capacity in Lake Bonney, South Australian Gas Tu
ines with a 120 megawatt of dual fuel peaking capacity, a 123 Megawatt gas speaker in New South Wales known as Smith OCGT. It has generated revenue of $229.3 million as of June 30th 2019. It has grown by more than 9% compared to the previous year which was $210 million. The total amount of electricity generated by Infigen is 1775 gigawatts annually. It has risen by 20% compared to the previous year. The Net Profit of Infigen was $41 million in 2019 compared to $46 million in 2018 and was down by 10%. We will do a research analysis of how Infigen is performing in terms of its resources, projects and cost management.
Project Selection
Tools and Practices
Infigen is renewable energy based generator and retail electricity distribution organization located in Australia. The ultimate objective of Infigen is to provide the various businesses in Australia dealing with firm supplies with clean, renewable and competitively priced energy. It began its operations with a portfolio of three fast begin firming assets which are the Smithfield Open Cycle Gas Tu
ine (OCGT), the South Australian Battery and the recently underway South Australian gas Tu
ines. These are Infigen’s owned and contracted renewable energy assets. All three of these assets helps Infigen to administer the intermittency risks related to supply of renewable energy production process.
The main business of Infigen is focused on the providing generator services to the Commercial and Industrial customer of Australia. About 95% of Infigen’s energy supply is renewable in nature. The three assets acts as a backup to the disruptions and risks associated with the solar and wind energy production process. There are various industries where Infigen supplies its generator energy facilities. They include telecommunication providers, manufacturers, food and beverages processors, commercial organizations, realty sectors, schools and universities and many more. Infigen provides services in South Australia, New South Wales and in Victoria. They facilitate their customers with green products and clean electricity on agreed terms.
Infigen works meticulously with their customers by entering into supply contracts with clauses which are reasonable, simple, and cost effective and solution oriented. Infigen provides its customer with after sales services which are responsive and personal in nature. Customer’s expectations are met as Infigen charges bill for the supply of electricity accurately and free from any hidden charges. (Infigen; ESG Report 2019; Customers; Pg 37)
Analysis
The electricity supply and generator retailer company Infigen has entered into a $38 million project with Lake Bonney Wind Farm in South Australia. The project is a 25 megawatt, 52 megawatt hour Tesla power pack battery which will be installed neighbouring the 278.5 megawatt wind farm in South Australia’s south-east of Mount Gambier. This project will help Infigen to expand the business and provide opportunities for stabilization of the grid system in the area and minimizing the cost of frequency control services. Previously Infigen had already conducted a feasibility study in South East Australia for installation of fast start gas production and pumped hydro-storage facilities which will act as back up for wind production. But, finally it was analysed and concluded that the best solution was installation of battery which was a purely renewable supply of energy. This will help to boost the supply of electricity at competitive prices and will help the consumer of South Australia with sufficient electricity supply. (Financial Review; Infigen energy to install $38m battery in South Australia; By Angela MacDonald-Smith; 15th Aug 2018)
Cost Management
Role and Importance of Cost Manager and strategies to manage project cost
Role
The role of a cost manager is to plan, implement and manage the cost and projected budgets of an organization. It helps the cost manager to determine and estimate the cost of project and will set plans and mechanism through which the actual costs don’t overshoots the budgets....
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