Business Finance Report: EEL Working Capital and Investment Analysis

This report examines the financial state of Excellence Electrics Ltd (EEL), highlighting the difference between profit and cash flow, the impact of working capital, and capital budgeting processes. The analysis reveals EEL's cash flow challenges, primarily due to outstanding customer dues and excess inventory. The report details the steps of capital budgeting, emphasizes the importance of formal documentation, and compares different methods like Net Present Value (NPV), Internal Rate of Return (IRR), and payback period, with a focus on NPV for project selection. The report includes a financial analysis of potential investments in Leeds and Bristol, using the NPV and IRR methods to determine the most viable option. Recommendations include strategies to improve cash flow, manage working capital, and make sound investment decisions. The report also includes an executive summary, table of contents, findings, and conclusion.