Business Decision Making

Business decision making

Table of Contents
INTRODUCTION...........................................................................................................................3
Main BODY.....................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Decision-making is perhaps a big part of today's corporate administration. The primary
responsibility of management is really to make rational or well-informed decisions. A choice is a
plan of treatment chosen from a collection of alternatives with the intention of achieving
organisational or management objectives. Any business or firm's decision-making mechanism is
also a continuous and necessary aspect of its operations. The thesis addresses important market
decision-making strategies such as the net present value (NPV) process and payback times.
Furthermore, the report discusses both financial and non-financial considerations that can
influence management decisions (Ruzakova, 2020).
Main BODY
NPV: A company's estimate of the expected gain (or loss) from either a project is called the net
present value (NPV). Major corporations must weigh the benefits of introducing programmes
even against benefits of capital preservation. Net present value may be used to calculate amounts
of revenue or to budget for capital spending.
Project A - Belt Project
Year Net Cash-flows Discount Factor @
14%
Present value of net cash
flows
1 45000 0.877 39474
2 45000 0.769 34626
3 35000 0.675 23624
4 70000 0.592 41446
5 82000 0.519 42588
Total Present value
=
181758
Initial Investment = 170000
NPV = 11758
Project B - Trainers
Year Net Cash flows Discount Factor @
14%
Present value of net cash
flows