This report presents a financial analysis of Garden Enterprises, encompassing cash flow projections, break-even analysis, and investment appraisal. The analysis begins with a cash budget for the final quarter of 2019, detailing cash collections, payments, and the resulting cash balance. It then proceeds to a sales mix analysis, comparing the original sales mix with a revised one to determine break-even points and contribution margins. The report further evaluates investment proposals using Net Present Value (NPV) and payback period methods, providing recommendations to management based on the findings. The analysis highlights the importance of considering the time value of money and the impact of different cost of capital scenarios on investment decisions. The report concludes by offering advice on accepting or rejecting the investment proposal based on the payback period and NPV calculations.
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