AUDITIZZ ELECTRONICS REPORT ON BUSINESS FINANCE [Enter YOUR name here]

BUSINESS FINANCE
[ENTER YOUR NAME
HERE] [ENTER YOUR
STUDENT ID HERE]
REPORT ON AUDITIZZ ELECTRONICS
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Contents
INTRODUCTION........................................................................................................... 2
CALCULATIONS AND ANSWERS..................................................................................4
1. Non-Discounted Payback Period.......................................................................4
2. Accounting Rate of Return................................................................................ 5
3. Net Present value and IRR of the Project..........................................................5
4. Sensitivity Analysis of NPV................................................................................ 6
5. Feasibility of the investment to the company...................................................6
6. Positive NPV and efficient market hypothesis...................................................6
7. Positive NPV and market value of the firm........................................................7
CONCLUSION & RECOMMENDATION...........................................................................7
APPENDIX................................................................................................................... 8
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INTRODUCTION
Every business organisation invests some amount of fund in long-term fixed
assets. Long term fixed assets are also known as the capital assets. Before
investing funds into long term fixed assets, every organisation must evaluate
the feasibility and profitability of such investment. There are various
investment appraisal techniques or assets valuation methods which can be
used for such investment analysis and project appraisal.
Auditizz Electronics is an electronic components manufacturer in Australia.
They are having core competencies in producing various integrated and
innovative electronic devices. Now they are planning to expand their
business operation by entering into a new segment by manufacturing a new
device. For doing so, they need to invest some fund into the capital assets.
This report is aimed at analysing all those investment opportunities and
evaluating the feasibility of such investment. This report also aims at
analysing and understanding various methods and processes of assets
valuation and investment appraisal. This report also shows the sensitivity
with respect to change in certain parameters in the net result of the
business.
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