Business Decision Making Report: Finance Module, Semester Analysis

This report provides a comprehensive analysis of business decision-making, focusing on capital budgeting techniques and financial ratio analysis. The report begins by calculating and comparing the payback period, accounting rate of return (ARR), net present value (NPV), and internal rate of return (IRR) for two machine models, Dysn and Texla. It then evaluates the advantages and disadvantages of each capital budgeting method, including NPV, IRR, ARR, and payback period, to aid in strategic decision-making. The report concludes with a recommendation for Dolapo Plc. on which machine model to invest in based on the calculations. Furthermore, the report extends its analysis to Tesco's financial performance, evaluating various financial ratios such as gross profit margin, return on total assets, ROCE, liquidity ratios, efficiency ratios, and gearing ratio. It discusses the limitations of ratio analysis and factors impacting Tesco's financial condition, offering insights for improvement. The report provides a detailed overview of the financial metrics and their implications for business strategy and investment decisions.