Business Decision Making

Business Decision Making

Table of Contents
Business Decision Making....................................................................................................................1
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Business decision making..................................................................................................................3
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Business decision making is denoted as taking the best level of decision in favour of
the organisation. This project will project case study on XYZ Plc Company. Henceforth,
report will emphasis on the payback period of investment decision making technique and net
present value method of investment decision making technique. Impact of financial and non
financial factors over company’s decision making will also understand in this project.
MAIN BODY
Business decision making
Business decision making is all about making the best level of decision in favour of
the organisation (Maxwell, 2016). Payback period, net present value and certain tactics are a
part of investment decision.
Payback period method
Payback period is a term that denote the time taken in recovering the overall
investment amount of the company. This is the least amount of time that is needed to recover
the overall investment company has done in a certain project. This is the at which level
company will generate a amount of revenue out of the certain project that will be able to
collect the overall amount of investment company has incurred in a certain project. This is the
minimum amount any project should generate out of the operations of organisation. The time
of payback period is minimum will get the preference in the investment decision in this
project (Chai and et.al.,2020). Whatever inflow company generate post payback time is the
profit of the company against a certain project. The inflow taken in this projected are all
expected as company expect inflow and income every year that it will entertain out of a
certain project. On the basis of the expected company’s cash inflow investment decision is
making in this method.
Project A= Software Project
Total investments = £ 100000
Cash inflow
Year Cash Inflow (£) Total cash inflow (£)
1 28000 28000