Business Decision Making: NPV vs Payback Period

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business decision-making refers to the process of that allows professional in solving the
problems by examining alternatives, choosing a right path and weighing evidences. It is a
process that also offers an opportunity of reviewing whether the decisions made are right or
not, in the end. There are different approaches for making decisions namely: model of
creative decision-making, model of intuitive decision-making, model of bounded rationality
and model of rational decision-making. The right decisions of the company are taken by
analysing the financial statements as, this is a decision taken after determining what will be
the best suit for the company. Here the company, S&P is a UK based company indulged in
cloth bags and leather bags. This essay will comprise a decision-making based on the
investment in the production of clothes and leather bags. The essay will also provide
comparison between key aspects of NPV and payback period. It will also focus on non-
financial and financial factors that are used in decision making.