In order to determine the feasibility of a project and to allow for comparisons between those that are mutually exclusive several very useful and highly recognised techniques are available. They include: I. Net present value (NPV) II. Internal rate of return (IRR) III. Accounting Rate of Return (ARR); and IV. Simple payback There are three (3) machines that the firm is considering as an investment. They are the Alumier which it currently uses; Big EZ and Cial. The objective of evaluating these investments is to determine which would be more beneficial to the firm. Evaluating Capital Budgeting Tools The NPV, IRR, ARR and simple payback. The advantages and disadvantages of using these methods are noted weaknesses and the relevant calculations to aid in the decision process are noted. Net Present Value (NPV) The net present value takes the time value of money into account and so the cash flows are discounted over the useful life of the asset. A NPV of zero means that the cash flow from the project would be sufficient to repay the initial investment only but would not contribute anything extra. ...

Download paper
### Related Essays

maths coursework
The Laplace transforms formula is given below: L[f(t)]= here f(t) is piecewise continuous and the derivative of f(t) should exist in the domain of t (t?0) Q2. L[]==, s>k. Q3. The following are the Laplace transforms for the given S.No. Function y(t) Laplace Transform L{y(t)} Region of Convergence (ROC) 1 y(t) Y(s) n/a 2 a (=a constant) a/s Re(s)>0 3 t 1/s2 Re(s)>0 4 t2 2/s3 Re(s)>0 5 tn[n>0 n?N] [n(n–1)(n–2)….1]/sn+1 n!/sn+1 Re(s)>0 n>–1 6 e–at 1/(s+a) s>a 7 e–attn n!/(s+a)n+1 Re(s)>0 8 H(t–a) e–as/s Re(s)>0 9 ?(t) 1 For all s 10 ?(t–a) 1 For all s 11 cos(?t)…

Investment Analysis Coursework 2001
‘Herd’ implies a social grouping of people, who have similar understanding or perception about anything. Here ‘herd’ implies the people, who have the same viewpoint within the stock market. The above statement briefs that market movements are dependent on individuals. If a person buys a particular stock and he is a popular figure in the community and society, then every individual intends to purchase this stock and this is simply because the first person has bought it, not because of the market value of the stock. “Perhaps 100 people were simply imitating the coin flipping call of…

International Finance Coursework
A firm therefore needs to keep the exchange rate risk at bay. Most firms do so by determining the specific type of exposure to risk, the hedging approach and they also find available instruments to deal with these currency risks. The international transactions the British Venture Capitalist is involved in, exposes them to exchange rate risk. They therefore have to plan in advance and take measures that will protect them against these risks to avoid incurring great losses. There are different types of risks or currency exposures the British Capitalist faces: Transaction risk or simply known as…

Financial Information: Coursework Assignment
The company has also recently initiated its telecom and data manager and distributions business lines (Bloomberg 2012). The company sells its products and services through its physical stores and also online ecommerce solutions to its millions of customers worldwide. The company operates for achieving its visions that is “to create value for customers to earn their lifetime loyalty” (Tesco Plc., 2011) and deliver its values “no one tries harder for customers and treat people how we like to be treated” (Tesco Plc. 2011). Auditors Report and its Importance The auditors of Tesco Plc are…

Financial Accounting coursework
Thus the accrual method of accounting measures the position and performance of the company based on the transactions made in the course of business irrespective of the cash receipts and payments done for the business transaction. The accrual method of accounting combines the current and expected cash inflows and outflows to determine the consolidated financial position of the company (Sofat and Hiro, 2008, p.36). Marks and Spencer has used the accrual method to determine the expected value of the cash flows based on the historical sales returns so that the accrued figures could be allocated…

Financial Accounting coursework
References….7 1. Executive Summary This report includes some of the basic principles and conventions that must be adhered to while preparing the financial statements. It includes analysis and evaluation of some of the accounting practices and conventions. This report also analyses and evaluates some of the accounting practices in Marks & Spencer Plc. 2.1 Accrual Accounting Accrual concept includes recognition of revenue when earned while expenses are only acknowledged when they are suffered or incurred. This accounting concept needs creation of an extra account that records the variance…

PMM Coursework
(d) If John would have produced dressings in house, the net loss would have been less as compared to outsourcing. He would have incurred a net loss of ?25,600 rather than ?30,000 leading to an eventual profit of ?74,000 (the working for this is shown in table 2 below). In house production would have not damaged the costs like it did with outsourcing and the prime reason for this could be the quality control. Above this whether the product was being made in house or was outsourced, it is a product, either way, that is lowering the adversely affecting the profits of the company. Question 2…