Capital Investment Methodologies and NPV Analysis for Ang Thong

This report provides a comprehensive analysis of capital investment methodologies, focusing on the application of Net Present Value (NPV) to evaluate different options for Ang Thong Pty Ltd regarding the launch of an anti-snoring device, No-Snore. The report details four potential strategies: manufacturing and marketing in surplus space, manufacturing and marketing in rented space, contracting with a specialist company, and selling patent rights. It explains the NPV method, its assumptions, and considerations relevant to the Ang Thong case. The analysis includes detailed calculations of NPV for each option, incorporating factors such as production costs, sales revenue, fixed costs, marketing expenses, and opportunity costs. The report also discusses other factors influencing capital investment decisions and concludes with a recommendation for Ang Thong Pty Ltd based on the NPV analysis, offering insights into the best course of action for maximizing the company's financial returns. The report also covers the importance of capital budgeting and the various techniques involved.