ACC211 Report Project: Financial Analysis of Auditizz Electronics

This report analyzes the financial feasibility of a potential investment project for Auditizz Electronics, an electronics manufacturer. It begins with an introduction to the company and the project, followed by detailed calculations of financial metrics including the non-discounted payback period, accounting rate of return, net present value (NPV), and internal rate of return (IRR). The report also conducts a sensitivity analysis to assess how changes in price and demand affect the NPV. Furthermore, it evaluates the project's feasibility based on the calculated metrics, discussing the implications of a positive NPV in relation to the efficient market hypothesis and the firm's market value. The report concludes with recommendations on whether the company should undertake the proposed investment, based on the financial analysis and investment appraisal techniques.