Business Decision Making

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
.........................................................................................................................................................5

INTRODUCTION
Business decision making is the important aspect that includes ascertainment of different
nature of information to made decisions and strategies. The importance of same is ascertained
from the point that help in attainment of large amount of benefits such as high productivity,
employee engagement, optimum utilisation of resources etc. The main aim of this essay is related
to ascertaining investment information through use of different financial and non financial
techniques (Black, 2019). The organisation considered is named as X Plc., having operations in
UK and Europe. The main aim of an organisation is about attainment of growth through
investing in new businesses.
The aspects covered in essay includes attainment of business decisions through the use of
Payback period, NPV, financial and non-financial.
MAIN BODY
Net preset value is the technique that help to ascertain the time period within which an
organisation is able to recover their amount of investment. This is also understood as time value
of money that can be gathered from the performance of any specific project. The method which
is basically used to calculate NPV includes subtraction of predicted cash inflows from overall
outflows of cash related to project (Collier, 2015). In the present case, NPV will going to be use
for evaluation Project A and B to determine the future profitability and viability attached with
the projects. Project A is Technological and B is Mechanical. Use or application of NPV
provides an opportunity to determine the profitability along with the viability of project which is
presented below:
Formula of NPV
Calculation of NPV:
PROJECT A: TECHNOLOGICAL PROJECT
Formula Calculation Result
Net cash flow for year 1 (Cash flows) / ( 1 + r)t (8000) / (1+10%)1 7272.727273
1