Capital Budgeting, Financial Ratios, and APN Outdoor Analysis

This report is divided into two parts, Part A focuses on capital budgeting techniques, discussing approaches beyond best-case and worst-case projections to manage risk in estimated cash flows, with a specific analysis of an investment proposal using Net Present Value (NPV), Profitability Index (PI), and Internal Rate of Return (IRR) methods. The report recommends accepting the proposal based on positive returns. Part B analyzes APN Outdoor, a listed Australian company, examining its financial ratios, capital structure, and key performance indicators. The analysis includes calculating the required rate of return using the Capital Asset Pricing Model (CAPM), comparing the company's debt-equity ratio with industry peers, and evaluating changes in earnings per share and cost of capital. The report concludes with a positive outlook for APN Outdoor and its shareholders.