Shared Practice Evaluation Methods Part II - Assignment Example

Shared Practice Evaluation Methods Part II Lecturer: Shared Practice Evaluation Methods Part II Response to Maureen Hi Maureen, one thing that I particularly like about your alternatives with the decision making tools is how you focused not just on how much the company will be worth in the future but also on the value of the company in the present state. This is because quote (year) explained that the real future value of a company should be determined not just based on quantitative measure of its returns.

Rather, it should be measured based on the extent of growth referred to from the point where the investment was started. As far as your selected project of selling soda is concerned, I strongly believe that you could have chosen at least two of the alternatives instead of wanting to use all of them at one point or the other. This notwithstanding, it is a good thing that you recognized that there will be different stages of decision making and thus the need to diversify your decision making tools.

ReferenceBrigham, E., & Houston, J. (2013). Fundamesntals of financial management (13th ed.). Mason, OH: Cengage Learning.Response to John Hello John, it is great to read about how you identify instances where each of the decision making tools is relevant and the advantages and limitations that come with each of them. I have always believed that companies have failed in the implementation of decision making on investments because they refuse to weigh out their options very well. This is because in most cases, the companies overly rely on the advantage that a particular decision making tool would bring without looking at possible disadvantages.

But as stressed by quote (year), it is very important that at every point in time, decision making will be made around whether the company’s priority is with time value of money or with the quantitative outcomes from investment. Regarding your current project, I believe it is a very good thing that you decided to select only two methods which are discounted payback and NPV. With such specification, you will be able to stay focused on the monitoring of your investment.ReferencesZimmerman, J. (2014). Accounting for decision making and control (8th ed.). New York, NY: McGraw-Hill.