Investment Appraisal and Cost of Capital

The assignment involves analyzing the investment appraisal of Tender A and Tender B using Net Present Value (NPV) and Internal Rate of Return (IRR) methods. It also explores the concept of cost of capital, including the calculation of debt and equity costs. The study further examines sources of finance available to Plaggio Ltd, such as borrowing, share issue, lease, and retained earnings. A detailed analysis of the results provides recommendations for investment decisions.