Business Decision Making: Net Present Value and Payback Period

Essay

Table of Contents
Introduction......................................................................................................................................3
Net present value..........................................................................................................................3
Payback period.............................................................................................................................4
Financial sector............................................................................................................................6
Non financial factors....................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The entire report focuses on business decision making (Halkiopoulos and et.al 2020). Business
decision making States about certain decisions which the management of the company has to
take for the Welfare and development of the company. Business decision helps the management
to solve any kind of problem in tissue which arises in the organisation and bring certain solution
so that company do not have to suffer from profitability. This report provides detailed
information about net present value and payback period.
Net present value
Year Project A – Belt Project
Net cash flow £
Initial investment £ 170000
1 45,000
2 45,000
3 35,000
4 70,000
5 82,000
NPV for project A is £11757.58
Year Project B – Trainers Project
Net cashflow £
Initial investment £ 1900000