International Financial Management: Case Study and Analysis Report

This report provides a comprehensive analysis of international financial management, focusing on Net Present Value (NPV) and Internal Rate of Return (IRR) calculations to evaluate investment projects. The report begins by examining NPV and its standard deviation for Toughnut plc, determining whether a project is profitable based on the NPV outcome. It then assesses a project for English lignite mines, calculating expected NPV and standard deviation, and offering suggestions to avoid liquidation. The report also explores the probability of rising prices and ranks projects for Alder plc based on NPV. The analysis includes detailed calculations and comparisons between NPV and IRR, highlighting NPV's superiority in various financial scenarios. Furthermore, the report calculates the probability of liquidation for RJW's English operations, considering optimistic, pessimistic, and RJW's estimates. Finally, the report calculates and ranks four projects (A, B, C, and D) based on their NPV, providing a comparative analysis and explaining why NPV is considered a more effective metric than IRR in financial decision-making. The report emphasizes the importance of financial strategies and analytical thinking in overcoming challenges in the competitive global market.