Calculate the npv is elevated for project hk, Business Management

Assignment Help:

a) Students will require to carry out a full quantitative investment appraisal:

	Project HK	Project UK
Payback	2 years, 7 months	2 years
ARR	22.5%	20.83%
NPV	$21,141	$19,990

Based on the financial data, Project UK has a shorter payback (by just over 6 months), so if liquidity is an issue, then the firm should choose for this venture.
However, the ARR is higher if the firm opts for Project HK; although both are considerably higher than any return from savings at a bank
The NPV is elevated for Project HK (by a $1241 or 6.23%)
Overall, on financial grounds, Project HK seems the improved option if the business is prepared to wait a further 6 months or so before it accomplish payback.

In addition, investment assessment methods should consider the qualitative factors (the PORSCHE mnemonic) that affect the business and the investment. For example, there needs to be a consideration of organizational the views of stakeholders and objectives.

Related Discussions:- Calculate the npv is elevated for project hk

What are the benefits of effective business communication, QUESTION 1 a...

QUESTION 1 a) Explain the seven elements involved in a Communication Process b) With reference to the 7C's and 4S's, explain how communication can be improved in a business

Research activities included in marketing research, What is the research ac...

What is the research activities included in marketing research? Marketing research includes all research activities involved in marketing problems:- a. Recording, analyzing

Describe resource based view, Nicholas Carr suggests that the "technology's...

Nicholas Carr suggests that the "technology's potential for differentiating one company from the pack - its strategic potential - inexorably declines as it becomes accessible and a

What is a digital certificate, QUESTION At the heart of Public Key Infr...

QUESTION At the heart of Public Key Infrastructure (PKI) is encryption. Encryption is the process of scrambling data in such a way that it is difficult, expensive, or time cons

Organizational goals, outline benefits of organizational goals?

outline benefits of organizational goals?

#SWOT, Rate, from best to worst, each of the sources you indicate in Questi...

Rate, from best to worst, each of the sources you indicate in Question 1 above as being sources you will use in your analysis in terms of its probable reliability. Discuss the ste

Definition of liquidity problem, An examination of up to three reasons is a...

An examination of up to three reasons is adequate for maximum marks. a) Cash Flow estimate for Cottam Stationers Aug Sep Oct Nov

Purchasing and supply management, steps in the process of evaluating the pu...

steps in the process of evaluating the purchasing and supply

Markitting, business management

business management

What is video-conferencing and what are its requirements, QUESTION An a...

QUESTION An area where telecommunication is gaining ground among businesses and academics is video-conferencing. However Video-Phone systems have existed for years, but have no

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages