Financial Management: Capital Budgeting Decision Report for PENTAG

This report provides a comprehensive analysis of capital budgeting decisions for PENTAG, focusing on the production of Q-Powerboats versus S-Powerboats. It employs both quantitative and qualitative methods to evaluate the financial viability of each option. The report utilizes capital budgeting techniques, including Net Present Value (NPV), Internal Rate of Return (IRR), and payback period, to assess the profitability and investment potential of each project. The financial data used in the analysis is based on market surveys, and the report recommends the best available option for PENTAG. The report also considers qualitative factors such as environmental impact, strategic alignment, employee morale, and future demand. Furthermore, a comparative analysis of both projects is conducted, with recommendations based on NPV and IRR calculations. The conclusion supports the production of Q-Powerboats based on the detailed analysis.