logo

Investment Appraisal Techniques | Financial Analysis | Assignment

   

Added on  2022-08-14

9 Pages1396 Words17 Views
Running head: INVESTMENT APPRAISAL TECHNIQUES
Financial Analysis
Name of the Student:
Name of the University:
Author’s Note:
Investment Appraisal Techniques | Financial Analysis | Assignment_1
INVESTMENT APPRAISAL TECHNIQUES1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................6
Question 4........................................................................................................................................7
References........................................................................................................................................8
Investment Appraisal Techniques | Financial Analysis | Assignment_2
INVESTMENT APPRAISAL TECHNIQUES2
Question 1
a) Project A
Period Year 0 1 2 3 4 5 6 7 8 9 10
CashFlows 5,000.00-£ 700.00£ 800.00£ 900.00£ 1,000.00£ 1,100.00£ 1,200.00£ 1,300.00£ 1,400.00£ 1,500.00£ 1,600.00£
Discount Factor 1.00 0.96 0.92 0.89 0.85 0.82 0.79 0.76 0.73 0.70 0.68
Discounted Cash Flows 5,000.00-£ 673.08£ 739.64£ 800.10£ 854.80£ 904.12£ 948.38£ 987.89£ 1,022.97£ 1,053.88£ 1,080.90£
Net Present Value 4,065.76£
IRR 16%
DiscountedPaybackPeriod
Discounted Cash Flows 5,000.00-£ 673.08£ 739.64£ 800.10£ 854.80£ 904.12£ 948.38£ 987.89£ 1,022.97£ 1,053.88£ 1,080.90£
Amount Recovered 5,000.00-£ 4,326.92-£ 3,587.28-£ 2,787.18-£ 1,932.38-£ 1,028.26-£ 79.88-£ 908.01£ 1,930.98£ 2,984.86£ 4,065.76£
Discounted Payback Period 0 1 2 3 4 5 6 0.08
DiscountedPaybackPeriod 6.08
PaybackPeriod
Cash Flows 5,000.00-£ 700.00£ 800.00£ 900.00£ 1,000.00£ 1,100.00£ 1,200.00£ 1,300.00£ 1,400.00£ 1,500.00£ 1,600.00£
Amount Recovered 5,000.00-£ 4,300.00-£ 3,500.00-£ 2,600.00-£ 1,600.00-£ 500.00-£ 700.00£ 2,000.00£ 3,400.00£ 4,900.00£ 6,500.00£
Payback Period 1 2 3 4 5 6 0.42
PaybackPeriod 6.42
AccountingRate of Return Average Annual Profit/Initial Investment
Average Annual Profit 1,150.00£
Initial Investment 5,000.00£
AccountingRate of Return 23.00%
SensitivityAnalysis
Period Year 0 1 2 3 4 5 6 7 8 9 10
Project A 5,000.00-£ 700.00£ 800.00£ 900.00£ 1,000.00£ 1,100.00£ 1,200.00£ 1,300.00£ 1,400.00£ 1,500.00£ 1,600.00£
Discount Factor 1.00 0.93 0.86 0.79 0.74 0.68 0.63 0.58 0.54 0.50 0.46
Discounted Cash Flows 5,000.00-£ 648.15£ 685.87£ 714.45£ 735.03£ 748.64£ 756.20£ 758.54£ 756.38£ 750.37£ 741.11£
Net Present Value 2,294.74£
IRR 16%
b) Project B
Investment Appraisal Techniques | Financial Analysis | Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Investment Appraisal Techniques: Payback Period, NPV, ARR, IRR
|29
|1953
|20

Capital Budgeting - Techniques and Methods
|5
|681
|282

Corporate Finance
|5
|749
|341

Comprehensive Report of Goodfellow PLC
|9
|1425
|67

Managing Financial Resources Assignment- Victoria Babies Ltd
|11
|2644
|32

Techniques of Project and Investment Appraisal in Financial Accounting
|14
|3215
|82