Business Decision Making

BUSINESS DECISION
MAKING
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Calculation of payback period for XYZ plc projects...................................................................4
Calculation of NPV for XYZ projects.........................................................................................4
Final decision...............................................................................................................................4
Financial factors...........................................................................................................................4
Non financial factors....................................................................................................................4
CONCLUSION................................................................................................................................4
REFRENCES...................................................................................................................................4
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INTRODUCTION
Business decision making is a part of managerial activities which used by every business
organization. Manager takes decision for future growth and expansion of business entities. This
report is prepared on the basis of solving case study of XYZ plc which is situated in UK and
provides hospitality services to their reliable clients. In this report use of payback period and net
present value method is used for determining to solve the problem of the organization. This
report also contains use of financial and non financial factors during taken business decision.
TASK 1
Calculation of payback period for XYZ plc projects
Payback period is a time period which an alternative takes to recover the origin cost inured
during the establishment of the project. Higher pay back period show that project takes more
time end cash inflow activities are not in a high range (Cooper, 2017).
Benefits of payback period
It is one of the most easy method of capital budgeting.
Manager can easily recognize within short time period which alternative s more beneficial.
Payback period is used mainly for small business enterprises.
Software project A
Year Cash inflow in £ Cumulative cash inflow
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