NPV and IRR Analysis for Informed Decision Making

Net Present Value (NPV) is a financial metric used to evaluate the profitability of a project or investment by calculating the present value of expected future cash flows. In business decision-making, NPV helps clients determine whether an investment is worthwhile by comparing its potential returns to the cost of the investment. The Internal Rate of Return (IRR) is another important metric that calculates the rate at which the NPV becomes zero. IRR indicates the rate at which the project's profitability grows and can help clients make informed decisions about investments. By combining these metrics, businesses can make data-driven decisions about whether to invest in a particular project or opportunity.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...............................................................................................................3
TASK.1................................................................................................................................3
1.1. Create a plan for collecting data from students across all campuses:......................3
1.2 Survey methodology and sampling frame:...............................................................4
1.3.Questionnaire for collecting the data:.......................................................................6
TASK.2................................................................................................................................8
2.1 & 2.2 Summarizing and analyzing the data:.............................................................8
2.3 Analyze the information utilizing measures of dispersion:.......................................9
3.4 Quartiles, percentiles and coefficient of correlation:..............................................10
TASK.3..............................................................................................................................14
3.1Produce graph:.........................................................................................................14
3.2 Trend lines in spreadsheet diagrams to help with deciding any example in
understudies reactions:..................................................................................................15
3.3 covered in PPT:.......................................................................................................17
3.4 formal report for presentation to QAA....................................................................17
TASK 4..............................................................................................................................18
4.1 How operational tools assist in decision making:...................................................18
4.2.project plan and determine the critical path:...........................................................19
4.3 Financial tools for effective decision making:........................................................20
CONCLUSION..................................................................................................................22
REFERENCES..................................................................................................................23

INTRODUCTION
Nowadays business decision making is required in every business organization. As this is
required for the sustainable development for the firm. Now, this has been essential for the
firm to make the strategy so that the long term objectives of the firm could be achieved.
Business could perform better if they could do better decision making in the firm. With
the help of effective decision, company can attain the objectives. Senior managers and
the higher authorities of the firm are the key persons in the association who are making
their business decision in a most effective manner in order to attain the pre determined
objective and this could also help to get the competitive advantage. For incorporating any
business plan, there is also need to gather the data and information and analyze those data
so that the firm would able to understand the need of the market(Vercellis, 2011). This
has been developed in the senior managers’ mind and they will implement those business
plan in an effective manner. To lead the students in a college, the leaders will have to
know the the need or complaints of the students whom you have been represent in front
of the student representative committee and try to resolve the quarries.
TASK.1
1.1. Create a plan for collecting data from students across all campuses:
The strategy or plan to gathering information from the students are as follows:
1. Establishment of retention planning team from various parts or course and various
existing committee, such as students affairs, finance, arts, commerce, etc.
2. each group of team should contain at least 15 members and they should be
charged with the data informed strategy.
3. framing some data persons a part of retention planning team in order to get the
accurate information easily(Tzeng and Huang, 2011).
4. identifying PPRC measures which are relevant to the colleges:
p=persistence, persistency of the students shows the willingness of the students to attend
the lectures and concerned to the college.
P=Progression, this shows the improvement of the students and then gather data for
framing strategy.

R=Retention, this will help for displaying the retaining capacity of the students and then
make the strategy.
C=complaints, complaints of the students also need to identifying the problems.
5. To organize “sweep data” within the classroom, with the official data which are
gathered with the PPRC standards and mixing the data into universities database.
The above mentioned information collected from the students, helps for making the plan
or useful strategies.
We can ask data based questions in many ways by ask questions from an individual,
students or classroom(Shouzhen and et. al., 2014). Questions about student academic
performance and both problematical and grade-appropriate activeness can be answered
by gathering data systematically. We have to ask questions by this way:
6. Is the course plan which they are study is too difficult for some students or not?
7. They are happy by doing independent work tasks?
8. They can do large no of assignments by having time and receive reinforcement?
9. New classroom management strategies accompanying to decreases in student
misbehaviour?
10. Is there a difference in mark sheet on in mid term exams when students complete
an assignments a day before?
11. Has the student involved in more social interactions with their buddies?
12. Which subject do you like in the class?
13. Do you like your online attendance system?
14. Which faculty do you like and why is it so?
15. what do you like in your campus and why?
16. Is the quality of food is good which you are eating in the mess?
17. The library of your college is good?
18. Which types of book do you like?
19. The security system of your college is good?
20. Is there is any type of sports activity which do you like?
21. The infrastructure of your college is better according to you?
22. If you like to add on some rules in the college which types of rules do you like?
Under this exploration, the scientist utilize irregular testing strategies keeping in
mind the end goal to gather the information. This will assist to settle on the business
choices in a viable way. There are 40 respondents chose who are prepared to address
questions. The understudies delegate need to make the study as needs be and under this
such a large number of things are have to included. The length of the study is 50 days.
The overview is fundamentally conduced on the refered to school's three grounds. Which
are in particular: Crickwood campus, WTH campus, Park royal campus. Under which
students and the staff will take part.

1.2 Survey methodology and sampling frame:
Sampling frame is done before an online survey is prepared. It is the listing of
information within a group of crowd, students or population(Shepherd, 2011). The
databases of the universities of entire students who are currently enrolled is considered as
a sampling frame. For example- the regular and irregular students in the university
campus.
A sampling framing could be incorrect if:
The frame does not have information or data of crucial or important individuals or
persons or information in the group to be gathered.
A particular information or person can be inappropriate the demographic picture that the
institute is targeting to gain.
Sample surveying process:
Definition of population- the term population is defined for surveying the mass such as
students in a particular college or professionals in the particular field to which the
question asked for their works, problems or habits so that the question asked to them have
a relative kinds of answers, such as internet users, android users, Microsoft users(Provis,
2010).
The population in the University are the students of different courses, batches. Or the
student who are staying in university hostel. Or the students staying outside the campus
etc.
Development of Sample Frame: It provides a source or a list of all information with in the
population. E.g The upper class and median class person as that shows there income
figure and show tax are in public information.
The team will make different groups for gathering information such as Cultural
information, science information,Activity information , problem information , Health
information etc of the university students.
Determination of Sample size :
As the size of the sample is dependent upon the factor like
1. The purpose of the survey.

2. Type of Question to be asked.
The purpose of this information is to collect information of the health, problem faced by
the new comer ,teaching quality in the university to make the university quality better.
Accessing sample Method :This is the last or final step in sample methodology, in this
case the sampling may only require some answer from the experts in the relevant
field(Nielsen and Nielsen, 2011).
For sampling individual need to appoint the highly qualified staff so that the So that a
perfect data of information required.
There are so many sampling tools which can be used while conducting survey. Some of
them are: cluster sampling, simple random sampling,etc.
Cluster sampling: there are different cluster available form which respondents are
selected on random basis who represents the entire students.
Simple random sampling: under this sampling method, the respondents are selected
without any specified standard they are chosen randomly form the total data.
1.3.Questionnaire for collecting the data:
A survey can be set up keeping in mind the end goal to get the data which is connected
with the exploration. Lead students illustrative of college has drafted the under said
survey for getting data which is connected with them :
Name of students :
Class :
field :
Subject :
Area :
1. Duration of the students in a college.
(a.) Not as much as a year
(b.) One to two years
(c.) Over two years

2. Fulfillment level of students connected with study
(a.) Exceedingly fulfilled
(b.) Tolerably fulfilled
(c.) Not fulfilled
(d.) Profoundly disappointed
3. Fulfillment level related with the comforts which are given by the college to its
understudies
(a.) Profoundly fulfilled
(b.) Modestly fulfilled
(c.) Not fulfilled
(d.) Profoundly disappointed
4. Happy with the workforce or staff which are showing them
(a.) Profoundly fulfilled
(b.) Modestly fulfilled
(c.) Not fulfilled
(d.) Exceptionally disappointed
5. Condition of college
(a.) Moral
(b.) Unscrupulous
6. Canteen facility which is given by college administration is
(a.) hygienic
(b.) Unhygienic
7. Security facilities that are given by the college administration to their students
(a.) Exceptionally fulfilled
(b.) Reasonably fulfilled
(c.) Not fulfilled

(d.) Exceptionally disappointed
8. Would they like to propose this college to their companions or relatives
(a.) Yes
(b.) No
9. Criticism if any..............
TASK.2
2.1 & 2.2 Summarizing and analyzing the data:
Mean:
Mean is the average or normal of the considerable number of numbers and values given.
The mean is the thing that individuals for the most part relate with the normal of the
considerable number of numbers(Muindi, 2011). The mean is computed by doing
aggregate of the considerable number of numbers and jumping the quantity of aggregate
arrangement of numbers. It is the sum average of all the observations. it is calculated by
adding the total of all observation and then dividing it by the no. of observations. Here in
this case the value of mean is 13845.4545454545 of all the students and 7000 for the
experienced and satisfied students
Median:
Median is the center number of all the numerical numbers. On the off chance that the
numbers are in an odd number than the focal piece of the number will be the median of
that arrangement yet in the event that the numbers are given in a considerably number
than the normal of two focal number will called the median of that arrangement.
Mode:
The number which regularly rehashes commonly in a series of number is known as the
method of that arrangement Like mean and median mode is a device of measurements. It
is the number in the mid of the values given , here median value of total students is 13900
and experienced and satisfied student is 7200. it is the highest frequency number that is

occurred in the series. It is called mode . This number has the most likely possibility of
being selected.
2.3 Analyze the information utilizing measures of dispersion:
dispersion helps in depicting information in measurements and furthermore how
the information is shifted from the other information. There are different measures of
dispersion accessible in statistics like range,standard deviation and difference. Normal
deviation ,inter- quartile are the basic measures of dispersion.
Data of dispersion:
It aides in concentrate the unwavering quality of data(Milovic and Milovic, 2012).
Progressively the information will solid more it will help in finding more precise solution
of the review less dependable the information will brings about finding not exact
solutions. So to use any sort of information in a review the dispersion helps in checking
the dependability of the information .
Level of dispersion:
Level of dispersion aides in ascertaining the fluctuation between two factors. An
incredible measure of scattering will indicate absence of homogeneity between two
factors while then again low measure of scattering will demonstrate high measure of
homogeneity between two factors. Level of Dispersion is a measure of computing
changeability or homogeneity between two factors or to know how the two factors or
same or scraper not quite the same as each other.
Measures of Dispersion
Measures of Dispersion is utilized as a part of ascertaining changeability between two
factors when information is circulated in Frequency or when information is given with
the likelihood(Maxwell, Jeffrey and Lévesque, 2011). Standard deviation is one of
measure of scattering which is utilized for knowing the connection between two factors
when the information accompanies the likelihood. Range and change are likewise used to

knowing the inconstancy between the factors when the concocts the recurrence or with
the likelihood.
3.4 Quartiles, percentiles and coefficient of correlation:
Quartiles are of three types i.e. 1st quartiles, 2nd quartiles and 3rd quartiles. 1st quatiles
shows the 1/25th value of the factor, second shows 50th values and the the third quartiles
shows 75th value and the last quartile shows the 100% value of the factor. Coefficient of
corelation shows the relationship between 3rd and 1st quartiles. Here, 1st, 2nd 3rd and 4th
quartiles values are 13100, 13900, 14600 and 15600. percentile shows the value in
percentile. For examples- if there is to know the 1/20th percentiles then the value will be
of 1/20th percentile. Coefficient of correlation shows the relation between one percentile
to another. All are defined underwith:
Total number of stuents Experienced & satisfied students
2006 12000 5600
2007 12500 5800
2008 13000 6200
2009 13200 6400
2010 13600 6700
2011 13900 7200
2012 14100 7400
2013 14400 7600
2014 14800 7800
2015 15200 8100
2016 15600 8200
Quartile 1 25th Percentile 13100 6300

Quartile 2 50th Percentile 13900 7200
Quartile 3 75th percentile 14600 7700
Quartile 4 100th percentile 15600 8200
Total number of students Experienced & satisfied students
Mean
13845.45454545
45 Mean
Standard Error 338.5433063109 Standard Error
Median 13900 Median
Mode #N/A Mode
Standard Deviation
1122.821122319
7 Standard Deviation
Sample Variance
1260727.272727
27 Sample Variance
Kurtosis -0.7828900712 Kurtosis
Skewness -0.0574347865 Skewness
Range 3600 Range
Minimum 12000 Minimum
Maximum 15600 Maximum
Sum 152300 Sum
Count 11 Count
Confidence Level(95.0%) 754.3214938713 Confidence Level(95.0%)

28/06/1905
29/06/1905
30/06/1905
01/07/1905
02/07/1905
03/07/1905
04/07/1905
05/07/1905
06/07/1905
07/07/1905
08/07/1905
0
10000
20000
Bar Chart- no. of students
28/06/1905
29/06/1905
30/06/1905
01/07/1905
02/07/1905
03/07/1905
04/07/1905
05/07/1905
06/07/1905
07/07/1905
08/07/1905
0
4000
8000
Bar chart - experienced and Satisfied students

TASK.3
3.1Produce graph:
1 0.9888817359

3.2 Trend lines in spreadsheet diagrams to help with deciding any example in
understudies reactions:
Trend Line
Trend line fundamental utilized as a part of share market and other organization like trade
quick. Trend line is utilized in each organization to compute their benefit and loses. trend
line expanding and diminishing the organization gainfulness. trend line is an essential
examination and specialized investigation. Specialized investigation break down the
market late trends. trend line make the product cost. Trend line decided the present
market cost. Incline line impact the regular routine of ware. Trent line is a line which is
characterized the item cost . Trend line affirm the organization quality and also perceive
the many shapes. Trend line of the line characterized the expanding and diminishing of
item cost. Here, it has been mentioned.
Research Analysis:
Explore examination look into the information of the organization. Look into
examination is a factual strategy. Look into investigation characterized the organization
13845.4545454545338.5433063109139001122.8211223197
1260727.27272727
0.7828900712
0.0574347865
3600
12000
15600152300
11 754.3214938713

profile and position of the organization(Hwang and Yoon, 2012). Inquire about
investigation look into the organization information ,organization profile ,number of
representatives. Any field look into examination utilized like advertising field, fund
field ,and human asset administration and so forth some investigation of research like
subjective investigation ,quantitative investigation research is likewise utilized as a part
of study . Examine examination is utilized the item naming ,pressing and item quality.
Research is a perception , narrative and meetings of the organization and firm. The
general population look into the organization information.
28/06/1905
29/06/1905
30/06/1905
01/07/1905
02/07/1905
03/07/1905
04/07/1905
05/07/1905
06/07/1905
07/07/1905
08/07/1905
0
4000
8000 f(x) = 273.636363636364 x − 543282.727272727
R² = 0.987584477872253
Trend Line- experienced and Satisfied students
28/06/1905
29/06/1905
30/06/1905
01/07/1905
02/07/1905
03/07/1905
04/07/1905
05/07/1905
06/07/1905
07/07/1905
08/07/1905
0
10000
20000
f(x) = 337.272727272727 x − 664410
R² = 0.992507931929623
Trend Line

3.3 covered in PPT:

3.4 formal report for presentation to QAA
TO
Chief executive director of QAA
Date : 22nd April 2017
Abridge the information of number of students in school and collection. We review and
get the quantity of students around 1400. this students has a place the undergraduate and
postgraduate students. Some students stream are science ,some students foundation
commerce and arts(García-Peñalvo and Conde, 2014). Look into led the subject are
human science, human administration, business bookkeeping ,measurements, culture
expressions ,science and political. investigate directed numerous area like London,
Birmingham , joined kingdom and some other area (Vercellis, 2011). There are a few
purposes behind students fulfilled and disappointed like security office, flask office,
condition, personnel and staff administration and so forth investigate led the students
were intrigued the security office and container office. Fifty five rate profoundly
fulfilled the security office and sixty five rate students fulfilled container office. students
were fulfilled the review.

TASK 4
4.1 How operational tools assist in decision making:
` The information system is a bundle of procedures and various factors which work
together so that the task can easily completed. And then connected this on information
system. There are so many factors which supports to get the task done(Gabrielsson and
Gabrielsson, 2013). The information system assist the information as per the need of the
consumers. presently is a perfect time to assess modernized decision support projects,
particularly DSS. In the initial time, numerous product sellers concocted new terms
connected with decision support. For a few sellers, DSS was excessively broad; for
others, DSS was connected with fizzled ventures, unreasonable desires, and painful
memories. On a certain time, organizations kept on building modernized data frameworks
to assist the managers who make the decision in the firm. Company’s managers have
figured out how to distinguish and deal with consumers desires. DSS vary and innovation
can bolster an extensive variety of decision making work. There are two key premises
related with automated decision support. In the first place, PCs and information
technology can help individuals settle on critical decision. Second, computerized DSS
help and bolster chiefs and keep them associated with the basic leadership circle(Frey,
Schulz-Hardt and Stahlberg, 2013). The superseding objective is enhancing basic
leadership viability and productivity, not robotizing decisions. There are almost all the
associations which applied in their routine operations the computerized support system.
Decision support system supports the managers or the higher authority to collect and
assess the sales information, frame reports, assess, and assess the estimating results. It
also assist to play tasks, like- comparing budget with actual and identifying the variance
if any.
Information system also support the firm to collect and manage the data and
information so that the firm would able to frame the plan for the development of the firm.
Basically, information systems are categorized as: the ready made and the other is a type
of customized and this is designed as per the requirement of the users. However, there are
mainly four types of information systems which assist the association to effectively
operate the operation of the firm and also helps to frame a sound decisions fro the
benefits of the firm(Fernando and Chowdhury, 2010). These are: transaction processing

system, consumers relationship management system, organization intelligence system,
and the knowledge management system. The main crux of these system are to gather the
input and also assist to process them so that the outcome could be get(Craft, 2013).
1. transaction processing system: this system helps the firm for processing the
tasks for firm’s core operations.
2. customer relationship management: this system supports
4.2.project plan and determine the critical path:
Before going make a project, the individuals need to make the planning of the
project and also required to understand in details about how much capital needed to
make the project, and also need to know the how many days are required ?. Individual is
required to know the answers as well of the questions about what, why, how, when,
where, and how much? Answers must satiate the questions what user need to ask. Here,
How these questions are responded:
1 what?-what is idea?, what will you call this project?,
2.How? how this project will benefit the community or individuals?
3. Why? Why should the investors will make investments in this project?
4. What? What will happen if project doesn’t proceed?

Critical path: 1-2-3-7-8
; 2+4+6+3+2
= 17 days
This Gantt chart shows that, to complete the project, 17 days is minimum required.
Exploring the idea to other community so that to get ideas and suggestion of different
peoples.
Briefing the ideas in different community meeting, to explore the concept.
To inquire if anybody else is already in this business or in the similar project, With whom
he can work with.
4.3 Financial tools for effective decision making:
years
Cash
flow
PV@10
%
0 -15000 1 -15000
1 8000 .909 7272
2 10000 .826 8260
3 5000 .751 3755
4 5000 .683 3415
NPV 7702
As per the above calculation report, company invest 15000, and in the succeeding
years project is able to generate the Net Present Value is 7702. it reveals that by
investing 15000, company is able to make the net additional inflow of 7702 hence, the
firm’s project should be accepted as it represents the positive sign in the project.This
might be characterized the connection sheep between money inflow and present esteem.
net present value is strategy for the capital planning. This technique demonstrate the
organization gainfulness .NPV is organization is net present value
Internal rate of return is the situation where present value of cash inflow is equal
to the present value of cash outflow. This is the interest rate where the present value of

cash inflow =present value of cash outflow and the net present value is zero. This is the
actual rate of return. If interest rate of return is greater than the cost, then in that case
project should be accepted. But when internal rate of return is less than the cost, the
project should be ignored(Brynjolfsson, Hitt and Kim, 2011). Internal rate of return is
calculated by the trial and error method. Internal rate of return: IRR is a strategy for
capital planning. This technique compute by rate. This technique is characterized the
organization's inward rate of return. Inward rate of return is an inner element not an
outside component. Interior rate of return computed the marked down income.
-15000
cost of the
machine
8000 1
10000 2
5000 3
5000 4
35%
internal rate
return
The internal rate of return of the company is 35%%. Hence, it has been revealed
that the net flow of the company is zero, when the company’s interest rate is 35%. If the
company’s interest rate is 35% then, the net present value of cash inflow is equal to the
present value of cash outflow. At this point of time net present value of the firm is zero.
CONCLUSION
From the above reports and analysis, it has been found that the there are a few
strategies through which a firm can build up its execution through settling on specific
choices which depend on the information gathered through which they can investigate the
information which have been gathered through different sources which are solid and
trustworthy. According to a few data about different scenario have been given through
utilizing overview technique and lead students agent additionally gave the net present

value and internal rate of return of a specific information through which a client can take
solid and fruitful decision.

REFERENCES
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Online