Business Decision Making: NPV, Payback Period, Financial and Non-Financial Factors

Essay on Business
Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Compute NPV and Payback period and also explain the financial and non-financial factors....3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Decision- making is most important term of any firm or organization. This involves
determines an objectives and essential details and measuring the alternatives in regards to
creating a decision. The content sounds ease, yet various people seen of an important phases and
uncertainty that happens when making decisions. Moreover, its essential to make the best
decisions in the situations. In this report various content will be describe just as, business
decisions making, pay back factors. Further it will analyse the financial and non-financial
statements (Gil-Barragan, Belso-Martínez and Mas-Verdú, 2020).
MAIN BODY
Compute NPV and Payback period and also explain the financial and non-financial factors.
Year Project – A
Vegan Chocolates
Net Cash flow
Cumulative Cash
low
Project – B
Vegan Spread Net
Cash flow
Cumulative Cash
Flow
1 52000 52000 46000 46000
2 58000 110000 60000 106000
3 82000 192000 72000 178000
4 105000 297000 89000 267000
5 118000 415000 108000 375000
Initial Investment of Project – A Vegan Chocolates = 140000
Payback Period of Project – A Vegan Chocolates = 2 years + (Initial Investment – Cumulative
Inflows) / Inflow of the next year
Payback Period of Project – A Vegan Chocolates = 2 + (140000 – 110000) / 82000
Payback Period of project – A Vegan Chocolates = 2 + (30000 / 82000)
Payback Period of project – A Vegan Chocolates = 2 + 0.365
Payback Period of project – A Vegan Chocolates = 2.365