Business Decision Making

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION: ..............................................................................................................................4
REFERENCES ...............................................................................................................................5
.........................................................................................................................................................6

INTRODUCTION
Business decision making is a systematic process of selecting best course of action
among other course of actions. In other words it is a method of taking strategic decision by
managers. Organisation use this framework for achieving their predetermine goal through
optimum utilization of their resource. To understand the concept of decision making ABC plc
has been taken. The company is established in united kingdom (Jankowski Lotov and Gusev,
2019).
They choose united kingdom and various countries of Europe as their target market area in
which they sell their software products. In this report uses of various financial accounting
technique in decision making . And importance of financial and non financial factors in decision
making has been identified.
TASK
Computation of Payback period of project A (Motor Software Project)
Years Net Cash Flow Total
1 8000 (40000)
2 12000 (32000)
3 16000 (20000)
4 20000 (4000)
5 30000
Payback period = Years before full recovery + Uncovered cost at starting of the year / Cash flow
during the year (Linder and Williander 2017 ).
Payback period = 3 + 4000 / 20000 = 3.2
Computation of Payback period of project B( Hardware Project)
Years Net Cash Flow Total
1 10000 (60000)
2 20000 (50000)
3 25000 (30000)
4 30000 ( 5000)
5 40000
1