Financial Management Report: PENTAG Powerboat Project Recommendation

This report assesses two potential powerboat manufacturing projects (Q-Powerboat and S-Powerboat) for PENTAG, focusing on financial management principles. The analysis includes a detailed cash flow statement for each project, calculating Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Discounted Payback Period to determine the most financially viable option. The findings indicate that Q-Powerboat is the recommended project due to its more favorable NPV and lower risk profile compared to S-Powerboat, especially when considering changes in discount rates. The report incorporates both quantitative and qualitative factors, including environmental impact and market share considerations, to justify the final recommendation. Detailed comparisons and further recommendations are provided to support the decision-making process, ultimately guiding PENTAG towards a strategic investment that aligns with its business objectives.