Accounting and Finance Report: Saturn Petcare and ARB Limited Analysis

This report provides a comprehensive analysis of two key areas in finance. Part A focuses on the capital budgeting decisions of Saturn Petcare, evaluating two project proposals for expanding its manufacturing footprint, specifically analyzing the feasibility of investing in the Wodonga site versus the Bathurst site. The analysis includes the calculation of Net Present Value (NPV) and Profitability Index, and addresses concerns related to product cannibalization and sales estimations. Part B assesses the financial performance of ARB Limited, examining its capital structure, using ratio analysis to evaluate the company's financial health, and assessing shareholder wealth using the Capital Asset Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC). The report compares ARB Limited's capital structure with a competitor, Modine Limited, identifies changes in capital structure, and offers recommendations for improving shareholder wealth. The report concludes with insights into capital structure optimization and shareholder wealth maximization.