PART 1
Assume that you are working for one of the companies you have analysed for the group coursework, and that you are required to assess the viability of a new product and service line. Briefly illustrate the scenario, i.e., new product / service line and rationale for launching it using market intelligence.
Referring to your chosen product / service line, estimate the underlying costs and initial investment alongside estimation of revenue followed by breakeven analysis. Derive the cash flows from the above estimation. Critically evaluate your results.
*The chosen company is BP.
The new service launch a new service of Auto Insurance service center compiling major auto insurance sellers’plans.
PART 2
Referring to your chosen company and product / service line, choose the appropriate discount rate considering the company’s risk appetite and support your argument with internal or external data. Complete investment appraisal of the new product / service line using NPV, IRR, Payback Period and Accounting Rate or Return and help the company to make a decision on the new product / service line.
Rationale: huge market and the growing technology of intelligence make insurance selling possible in quick time. Many BP gas stations have charging points for EV cars owners, who spent long time in sites. Promoters have more time to gain potential clients.
Cost and Initial investment.
Cash flows.
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bp-annual-report-and-form-20f-2021.pdf
