Business Decision Making

Business Decision
Making

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Business decision making and discussion of different factors that are taken into consideration
while formulating decisions.........................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
In all the large as well as small business entities all the managers are required to be
focused with business decision making. It can help to analyse that all the decision that are
formulated previously are able to result positively or negatively for business. It is very important
for all the businesses to make sure that they are analysing actual position of business and then
formulating the decisions for controlling and other activities (Black, 2019). This assignment is
upon A&B restaurant which is planning to invest in one of the projects for services that are
outsourced by it. Various factors that will be discussed in this report for the purpose of
formulating decision are net present value, payback period and different types of financial and
non-financial factors.
MAIN BODY
Business decision making and discussion of different factors that are taken into consideration
while formulating decisions
Business decision making is the process which is followed by all the companies for the
purpose of formulating decision for future so that all the predetermined objectives could be
attained. A & B Restaurants is a food chain which is operating business in different locations
around the world. It is currently outsourcing different services including dishwashing and
software. Both the projects require different investments and in order to select best option from
all of them it is very important for the enterprise to use different types of techniques and also pay
attention towards different financial and non-financial factors. Discussion of all of them along
with the calculation of all the investment appraisal techniques is as follows:
The information which is already provided for both the projects included investment for
project A and B is 120000 and 150000 respectively. Discount rate for the projects is 14%.
Payback period is very simple and essay to understand method which is used by all the
companies to analyse the tie period in which total amount of investment could be recovered
(Buckley and Casson, 2019). Apart from this, while planning to select best project from both the
alternatives the managers in A&B restaurants can use to evaluate the projects. The calculation of
them is as follows:
Calculation for project A:
1