International Financial Management Report for BA Business Management

This report provides a comprehensive solution to an International Financial Management assignment, addressing key concepts such as Net Present Value (NPV) and investment appraisal techniques. The report begins with an introduction to the importance of financial management in business growth, followed by detailed calculations and analysis related to NPV, standard deviation, and project evaluation under different scenarios. Question 1 focuses on calculating the expected NPV and standard deviation of a project, while Question 2 delves into the evaluation of a project to buy English lignite mines, including NPV calculations under optimistic, pessimistic, and RJW's estimates, and the probability of avoiding liquidation and the probability of occurring. Question 3 examines the NPV of different projects, comparing it to the Internal Rate of Return (IRR), and determining the highest achievable NPV given resource constraints. The report concludes with a discussion on the superiority of NPV over IRR and provides recommendations based on the financial analysis. All calculations are supported by clear explanations and relevant financial principles.