Ask a question from expert

Ask now

Managing Financial Principles and Techniques - Assignment

9 Pages1976 Words46 Views
   

Added on  2021-02-22

Managing Financial Principles and Techniques - Assignment

   Added on 2021-02-22

BookmarkShareRelated Documents
Managing Financial Principlesand Techniques - 5 (InvestmentAppraisal)
Managing Financial Principles and Techniques - Assignment_1
Table of ContentsMAIN BODY...................................................................................................................................1A) Method of project Investment Appraisal................................................................................1B) Evaluation of different project by investment appraisal.........................................................1C) Recommendation for the selection of project.........................................................................4D) Sources of finance...................................................................................................................4E) Component of working capital ...............................................................................................4REFERENCES................................................................................................................................6
Managing Financial Principles and Techniques - Assignment_2
MAIN BODYA) Method of project Investment AppraisalInternal rate of return : The IRR method is used for the capital budgeting to identify orestimate the profitability of the company in particular accounting period (Pozzi and et.al., 2015).It is used to calculate the expected return rate of the project or investment. Accounting rate of return : It is used to identify the risk associated with the investmentor the project and help the investor to take the decision of investment in particular project. Payback period : It refers to the time required by the company to recover the initialinvestment or amount invested in the project (Harris, 2017.). Shorter pay back period refers thatthe company financial position is good and asset make the good profit.Net present value : It refers to the difference between the present value of cash inflowand outflow in particular time period (Li and Trutnevyte, 2017). It is used to measure theprofitability of the project that weather the project is suitable for the company or not. B) Evaluation of different project by investment appraisalCalculation of net cash inflow for Project AProject AYear 1Year 2Year 3Year 4 Year 5Year 6EBIT 200040005000500050006400LessDepreciation 216721672167216721672167EAT-16718332833283328334233AddDepreciation 216721672167216721672167CashInflow (in£)200040005000500050006400Calculation of net cash inflow for Project BProject BYear 1Year 2Year 3Year 4 Year 5Year 6EBIT 400020002000200010001000LessDepreciation 216721672167216721672167EAT1833-167-167-167-1167-1167AddDepreciation 216721672167216721672167Cash Inflow (in 4000200020002000100010001
Managing Financial Principles and Techniques - Assignment_3

End of preview

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

Related Documents
INVESTMENT APPRAISAL (CAPITAL BUDGETING) TECHNIQUES
|13
|2010
|26

Online Exam - Accounting for Business: Income Statement, Financial Position, Payback Period, NPV, BEP Analysis
|11
|1494
|460

Financial Management and Decision Making
|15
|2884
|388

Accounting For Business: Income Statement, Balance Sheet, Investment Analysis, Financial Ratios
|10
|1574
|298

Online Exam - Accounting for Business
|8
|648
|155

Investment Appraisal Assignment
|15
|1817
|41