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Business Decision Making: Payback Period and NPV Comparison

   

Added on  2023-06-05

9 Pages1178 Words162 Views
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Business decision making
Business Decision Making: Payback Period and NPV Comparison_1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1
Business Decision Making: Payback Period and NPV Comparison_2

INTRODUCTION
Business decision-making refers to step by step process that are help for allowing
professionals to solve different types of problems by weighing evidence then examining
alternatives with the help of choosing path from here. Also, this is define process that provide an
opportunity by helping for review and making decision accordingly. In the present report it is
help for comparing key aspects which are related to payback period, financial and non financial
factor which are help for decision-making (Diel, Loddenkemper and Nienhaus, 2019).
MAIN BODY
Calculation of NPV for project A
Year Cash inflows PV
factor
@ 11%
Discounted cash inflows
1 60000 0.901 54054.05
2 68,000 0.812 55190.33
3 82,000 0.712 58365.98
4 109,000 0.659 71801.68
5 155,000 0.593 91984.96
Total discounted cash inflow 331397
Initial investment 185000
NPV (Total discounted
cash inflows - initial
investment)
146397
Business Decision Making: Payback Period and NPV Comparison_3

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