International Financial Management

International Financial
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluating financial viability of investment project:...................................................................3
Critical appraise use of Payback Method, ARR and IRR as methods of investment appraisal:..5
Discussion about several non-financial variables a company should regard in investment
appraisal:......................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Faster globalization, financial turmoil and an ever-changing market climate combined to
make current financial management problems more important than before. And these same
factors make effective financial controls quite necessary, as international financial management
(IFM) works, through decisions of financial nature made, at the time of global business (Madura,
2020). In this regard, the study covers critical evaluation of multiple techniques of investment
appraisals along with practice task. Further this study cover comprehensive discussion about
non-financial factors in organisational context.
MAIN BODY
Evaluating financial viability of investment project:
Initial Investment 1000000
Life of Project 7 Years
Estimated annual cash flow 190000
Residual Value 150000
Net Present Value (Using Cost of Capital):
Year Cash Flows PV@8%
0 -1000000 1.0000 -1000000.00
1 190000 0.9259 175925.93
2 190000 0.8573 162894.38
3 190000 0.7938 150828.13
4 190000 0.7350 139655.67
5 190000 0.6806 129310.81
6 190000 0.6302 119732.23