Financial Analysis and Management of Rio Tinto

FINANCIAL ANALYSIS
AND MANAGEMENT
RIO TINTO

Contents
Introduction...............................................................................................................................2
Background of the company and the business environment...........................................2
Analysis of the capital structure and dividend policy of the company.............................3
Methods of capital investment appraisal..............................................................................4
Net Present Value (NPV)...................................................................................................4
Internal Rate of Return Method (IRR)..............................................................................5
Profitability Index Method (PI)...........................................................................................6
Pay Back Period..................................................................................................................6
Accounting Rate of Return Method (ARR)......................................................................7
Conclusion................................................................................................................................7
References...............................................................................................................................9