On completion of the module students will be able to:
- Demonstrate a critical understanding of investment appraisal tools that are relevant for financial strategy decisions
- Demonstrate a critical understanding of financial strategy theory
- Develop the necessary analytical skills to make financial decisions
Prepare a business report for presentation to the Board of the company.
A) Identify the relevant cash flows and cost of capital for investment appraisal
B) Calculate the payback and the accounting rate of return of the proposed investment.
C) Calculate the net present value of the project and determine the internal rate of return.
D) Evaluate the sensitivity of the proposed investment to the potential variations in cash flows.
E) Discuss the advantages and disadvantages of the payback, accounting rate of return and net present value techniques.