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Business Decision Making: Payback Period and Financial & Non-Financial Factors

   

Added on  2023-06-07

8 Pages1210 Words133 Views
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Business decision
making
Business Decision Making: Payback Period and Financial & Non-Financial Factors_1

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Heading 1.....................................................................................................................................3
Heading 2.....................................................................................................................................3
Heading 3.....................................................................................................................................3
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4
Business Decision Making: Payback Period and Financial & Non-Financial Factors_2

INTRODUCTION
Business decision-making is refers to the step by step process which are help for allowing
professionals in order to solve problems by weighing evidence then examining alternatives by
choosing a path from there. This is considered as define process which are help to provide an
opportunity and also help for review all the decision accordingly. In the presents report will
comparing the key aspect of the payback period and financial and non- financial factors that can
be used for decision making.
MAIN BODY
Calculation of NPV for project A
Year Cash
inflows
PV
factor
@
11%
Discounted cash inflows
1 60000 0.901 54054.05
2 68,000 0.812 55190.33
3 82,000 0.712 58365.98
4 109,000 0.659 71801.68
5 155,000 0.593 91984.96
Total discounted cash
inflow
331397
Initial investment 185000
NPV (Total discounted
cash inflows - initial
investment)
146397
Business Decision Making: Payback Period and Financial & Non-Financial Factors_3

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