Non-financial factors that may play a role in your decision

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Reference no: EM13965703

Review the financial data below.

The company has narrowed the choice to the following two alternatives, with the following cash flow information being available.

Use the following data in your analysis: Year Property 1 $(000s) Property 2 $(000s) 0 (2,500) (2,750) 1 1,000 900 2 500 700 3 600 800 4 1,000 600 5 900 600

Note 1: The company's current cost of capital is 10%. Note 2: Ignore taxation.

To complete this Shared Activity:

Post an explanation of the tools that you believe would help you to reach a decision.

If you were a decision-maker in this organisation, which calculations and measures would you want at your disposal before making your choice?

Are there other, non-financial factors that may play a role in your decision? Additionally, include your recommendation to the company which option it should take.

Support your decision with an interpretation of any calculations you performed, as well as an explanation of any other factors you considered.

Reference no: EM13965703

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