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International Financial Management: Investment Appraisal Techniques

This assignment is for the course International Financial Management (LCBB6002) at the University of Wales: Trinity Saint David. It is a report assignment with a weightage of 30% and a word count of 1500 words. The assignment is focused on applying and critically evaluating various theoretical frameworks and models of international financial management, as well as discussing methods and techniques related to the financing of an international business.

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Added on  2023-01-09

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This document discusses the evaluation of financial viability of investments using investment appraisal techniques, critically appraises different methods of investment appraisal, and explores non-financial factors to be considered in investments appraisal. It covers topics such as payback period, accounting rate of return, internal rate of return, and the importance of non-financial factors in investment decisions.

International Financial Management: Investment Appraisal Techniques

This assignment is for the course International Financial Management (LCBB6002) at the University of Wales: Trinity Saint David. It is a report assignment with a weightage of 30% and a word count of 1500 words. The assignment is focused on applying and critically evaluating various theoretical frameworks and models of international financial management, as well as discussing methods and techniques related to the financing of an international business.

   Added on 2023-01-09

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INTERNATIONAL FINANCIAL
MANAGEMENT
International Financial Management: Investment Appraisal Techniques_1
TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
QUESTION.....................................................................................................................................1
a) Evaluating financial viability of the investment using investment appraisal techniques........1
b) Critically appraising the use of different methods of investment appraisal............................4
c) Non Financial Factors to be considered in the investments appraisal.....................................5
REFERENCES................................................................................................................................8
International Financial Management: Investment Appraisal Techniques_2
QUESTION
a) Evaluating financial viability of the investment using investment appraisal techniques.
Initial Invest-
ment 1000000
Life 7 years
Annual cash
flow 190000
Residual Value 150000
Cost of Capital 8%
Hurdle Rate 12%
Payback Period
Computation of Payback period
Year
Cash in-
flows
Cumulative cash
inflows
1 190000 190000
2 190000 380000
3 190000 570000
4 190000 760000
5 190000 950000
6 190000 1140000
7 190000 1330000
Initial invest-
ment 1000000
Payback pe-
riod 5
0.3
Payback pe-
riod
5 year and 4
months
Accounting Rate of Return
Computation of Average rate of return
Year Cash inflows
1 190000
1
International Financial Management: Investment Appraisal Techniques_3

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