This report examines the financial decisions of Thomas Cook, a leading travel and tourism company, focusing on investment appraisal and financing strategies. The report analyzes various financial instruments, including long-term debt and equity, and their implications. It explores cost-volume-profit analysis, crucial for short-term decision-making. The report also delves into investment appraisal techniques such as payback period, accounting rate of return, net present value (NPV), and internal rate of return (IRR), emphasizing the importance of time value of money. The conclusion recommends a balanced mix of debt and equity and suggests using NPV and IRR for long-term investment decisions. The report highlights the significance of these financial tools in managing leverage and achieving profitable growth for Thomas Cook.