logo

Corporate Financial Accounting PDF

9 Pages1963 Words96 Views
   

Added on  2020-03-28

Corporate Financial Accounting PDF

   Added on 2020-03-28

ShareRelated Documents
Running Head: Corporate Financial Accounting 1Project Report: Corporate Financial Accounting
Corporate Financial Accounting PDF_1
Corporate Financial Accounting 2ContentsIntroduction.......................................................................................................................3Sensitivity analysis...........................................................................................................3Scenario analysis..............................................................................................................5Break even analysis..........................................................................................................7Simulation techniques.......................................................................................................8Conclusion........................................................................................................................9References.......................................................................................................................11
Corporate Financial Accounting PDF_2
Corporate Financial Accounting 3Introduction:Organization is accompanied with the complex set of activities in which various functions are performed with a view to achieve certain level of goals and objective. There areseveral financial tools such as ratio analysis, capital budgeting tools, NPV IRR, profitability analysis. These tools are used by investors or companies to evaluate the best suitable investment option which could be undertaken by organization to make effective use of resources in organization. It is observed that Net present value and IRR are the most suitable financial tools to select the most profitable project in the given options. It is evaluated that if companies could use these capital budgeting tools in effective manner then it will increase theoverall investment value. (Zimmerman and Yahya-Zadeh, 2011). Ideally, these capital budgeting tools are used by organization when long term investment decisions are made. For instance, when Company ABC wants to invest AUD $ 1, 00,000 in particular project. Company is having 5 project options to invest its capital. In this case, project giving higher NPV and IRR will be accepted by the organization. It is considered that Net present value notonly reflects the higher cash outflow but also showcases the present value of the investment or present value of cash inflow and outflow of business which it will have in future. This level of financial tools could be useful to create best value on the invested capital (Bier man and Smidt, 2012). It is evaluated that corporate decision are the key pillar for the success of organization. Investment in the particular project options may result to destruction of business if these are not taken in proper specific manner (Bennouna, et al. 2010).Financial tools such as ratio analysis, capital budgeting tools, NPV IRR, profitability analysis provide deep understanding on the associated financial factors of business. This will increase the overall project effectiveness and business and investment decisions (Gervais, Heaton and
Corporate Financial Accounting PDF_3

End of preview

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

Related Documents
Capital Budgeting: Techniques and Analysis
|8
|1495
|366

Corporate Financial Management | Sample Assignment
|13
|2738
|145

Capital Budgeting and Investment appraisal Technique in an Organization
|13
|2916
|456

Corporate Financial Management Assignment
|10
|2660
|37

Financial Analysis of Company Report Assignment
|15
|2564
|168

Financial Viability of a New Project: Capital Budgeting Analysis
|25
|2866
|486