Investment Appraisal Assignment example
High school
Assignment
Finance & Accounting
Pages 9 (2259 words)
Download 0
Tyneside gravel organizations are an organization that is in the growth stage in the development cycle.This is especially because it’s in the growth stage that an organization is characterized with a need to expand in terms of its size…

Introduction

The growth stage is also evidenced by the existence of sufficient resources that will be enough for the organization to open up to new opportunities. Tyneside gravel organization is currently faced by three main decisions. The first decision that Tyneside organization needs to consider is the need to expand as a way of meeting the demand of more customers. Through expansion it will be possible for the organization to open up to more opportunities. The organization needs to make a stable decision on the need to expand especially because one the area they seek to move in doesn’t have enough sand and gravel which would only add to the inconveniences (McEvoy, 2012). Tyneside gravel organization also needs to make a decision about having a similar stand especially for the autocratic managing director who fears taking into new and innovative methods which are mostly useful in adding to the success of any business. Tyneside organization is also faced by a third and very important decision of choosing between the most viable expansion site between Cleadon Hill and Burdon Farm through a consideration of various factors such as market and cost of leasing. Market is one of the major factors that affect the success of a particular organization because it affects both internal and external efficiency thus making it necessarily for Tyneside Gravel to put it into consideration. ...
Download paper
Not exactly what you need?

Related papers

Investment Appraisal Techniques
Some of the investment appraisal techniques used range from Net Present Value (NPV), Accounting Rate of Return (ARR), Internal Rate of Return (ARR) and Payback Period. Net Present Value (NPV) As one of the investment appraisal techniques, net present value (NPV) method ensures that the value of all the expected future cash flows is calculated into the present values (Droms, & Wright, 2010). More…
Investment Appraisal and NPV Analysis
It is required for the profitability and sustainability of the company. More often than not every enterprise has to invest in assets, mainly capital assets, so that they get returns out of it which they can utilize either to reinvest again or to pay back its owners (Peterson & Fabozzi, 2002, p.3). Investments in assets can be of both short-term and long-term types but every firm is primarily…
Investment Appraisal: The Zeta plc. Case
This article aims at carrying out an investment appraisal activity for a company named as The Zeta plc. The company has found an opportunity to manufacture a series of exclusive sailing boats over a period of four years and it is intended to dispose of the project after four years. However, the company needs to evaluate this investment opportunity as to whether it would be viable for the company…
Investment Appraisal Project
WACC=wdkd(1-T)+wpkp+wsks Where  Kd = interest on debt  Kp = cost of preference shares  Ks = cost of shares and retained earnings.  WACC is calculated by multiplying the cost of equity by the market value of the equity and cost of debt by the market value of the debt. Cost of equity can be defined as the minimum rate of return that a company must generate and offer to their investors in order…
Investment appraisal under uncertainty
Literature review Real option valuation calls for an elaborate and a firm strategy to form a conceptual tool to make the decision for the company (Kim & Sanders 2002). The most appropriate tool to be used in uncertainty cases is using real option as a technique to assess investments for contexts with high market, technical and technological uncertainty (Billington, Johnson & Triantis 2002). This…
Investment Appraisal: Matero Corp
The management will have to evaluate the projects which will generate stable cash flows for Matero PLC for at least 1 year. From the onset, we consider the possible consequences of Matero accepting or rejecting the project of procuring the machinery and plant. For this reason, we emphasise on the determination of the cost of capital whether there will be any form of financial leverage or not. If…
Investment appraisal
This analysis has been conducted based on several financial theories related to equity valuation. 1 Introduction 1.1 History of Google Google, a name synonymous with world leader in specializing in internet related services and product. The product and services offered by Google are vast and its operations are expanding at a rapid pace. The primary services offered by this giant corporation…