ATMC ACC211 Task 2 2018: Investment Analysis of SSHA Model
VerifiedAdded on 2023/06/11
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Report
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This report evaluates the profitability of a new SSHA (Smart Speaker and Home Assistant) model using various investment analysis techniques, including the non-discounted payback period, profitability index (PI), internal rate of return (IRR), and net present value (NPV). The analysis reveals a non-discounted payback period of 2.14 years and a PI of 1.65. The IRR is calculated to be 19.77%, and the NPV is $30,548,881.43, indicating a potentially profitable investment. Sensitivity analysis is conducted for both price and quantity changes, showing that the NPV is highly sensitive to changes in selling price and moderately sensitive to changes in selling quantity. The report concludes that Booli Enterprise should proceed with the production of the new SSHA model due to the positive NPV and recommends including potential losses from other products in the cost of investment analysis.
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