Discuss About The Investment Appraisal Energy Storage Systems?
From the overall evaluation of the calculation mentioned in question 1, adequate NPV and IRR of the project would be identified. The relevant NPV of the project is mainly calculated at $2,664,256.18, while the IRR is mainly at 61%. This directly portrays a highly stable project, which could provide higher returns investment. Relevant cash flow is mainly identified by deriving the total sales anticipated for the project, which directly help detecting the overall cash flow. The total sales are subtracted by the raw material cost included on both new product and contract manufacturing. On the other hand, Almarri and Blackwell (2014) argued that the overall viability of the project mainly reduced, when the relevant assumption of inflation or cost of capital is wrong, which directly increases the risk from investment. This overall detection of the raw material cost is mainly helpful in identifying the overall expenses incurred in deriving the gross profit (Locatelli, Invernizzi and Mancini 2016). However, the operating income that is identified from the operation that every positive, which would help in subtracting all the relevant administrative expenses. The relevant administrative expenses directly help in detecting the overall expenses incurred from operations. Hence, after the derivation of the net profit relevant cash flow is detected after adding the deprecation value, which is used in reducing the tax expenses. Baum and Crosby (2014) mentioned that overall derivation of the investment appraisal techniques directly help companies to identify the viable options, which could improve profitability and return from investment.
The second evaluation on the project is mainly identified by deducting the overall income and expenditure conducted on contract manufacturing sales. This relevant deduction of the contract manufacturing sales mainly helps in identifying viability of the new product in providing sustainable returns from investment (Eliasson and Börjesson 2014). The valuation of the NPV and IRR without contract manufacturing sales is mainly essential for deriving the viability of the new product. The NPV of the new product is mainly calculated at $1,741,375.61, while the IRR is detected at 46%. This mainly helps in identifying relevant viability of the new product in providing higher returns from investment in near future. This relevant detection of the viability of the new project could directly help the organisation to adequately support the investment option, which might increase firm value in future.
Therefore, it is recommended that the organisation commences with the project, as it might help in improving the overall return from investment. Furthermore, the project could also help in generating relevant income that could support future operation of the organisation. Positive NPV and IRR is the main reason for selecting the project, as it might generate higher revenue in future (Gotze, Northcott and Schuster 2016). The overall detection of the demand of the product, which is to be evaluated thoroughly by the organisation, as any reduction in revenue could invalidate the project. The second analysis that needs to be conducted is the derivation of cost of capital, which is detected at 15%. This derivation of the cost of capital also allows the organisation to calculate the NPV and detect viability of the project. The current market condition of the product also needs to be evaluated by the organisation, as it might help in detecting viability of the project and demand among potential customers (Hirschi and Selvin 2017).
Almarri, K. and Blackwell, P., 2014. Improving risk sharing and investment appraisal for PPP procurement success in large green projects. Procedia-Social and Behavioral Sciences, 119, pp.847-856.
Baum, A.E. and Crosby, N., 2014. Property investment appraisal. John Wiley & So
Eliasson, J. and Börjesson, M., 2014. On timetable assumptions in railway investment appraisal. Transport Policy, 36, pp.118-126.
Gotze, U., Northcott, D. and Schuster, P., 2016. INVESTMENT APPRAISAL. SPRINGER-VERLAG BERLIN AN.
Hirschi, T. and Selvin, H.C., 2017. Delinquency research: An appraisal of analytic methods. Routledge.
Locatelli, G., Invernizzi, D.C. and Mancini, M., 2016. Investment and risk appraisal in energy storage systems: A real options approach. Energy, 104, pp.114-131.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Investment Appraisal Energy Storage Systems. Retrieved from https://myassignmenthelp.com/free-samples/investment-appraisal-energy-storage-systems.
"Investment Appraisal Energy Storage Systems." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/investment-appraisal-energy-storage-systems.
My Assignment Help (2018) Investment Appraisal Energy Storage Systems [Online]. Available from: https://myassignmenthelp.com/free-samples/investment-appraisal-energy-storage-systems
[Accessed 19 January 2020].
My Assignment Help. 'Investment Appraisal Energy Storage Systems' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/investment-appraisal-energy-storage-systems> accessed 19 January 2020.
My Assignment Help. Investment Appraisal Energy Storage Systems [Internet]. My Assignment Help. 2018 [cited 19 January 2020]. Available from: https://myassignmenthelp.com/free-samples/investment-appraisal-energy-storage-systems.
MyAssignmenthelp.com has appointed best assignment experts who are wizards of words. Our writers know every trick of crafting high quality write-ups within a short period. With years of experiences, we have become one of the most prolific assignment help services in the USA. We deliver custom-made help to students with writing different types of assignments. We guarantee total need-based and timely service, and this is why increasing numbers of students prefer to buy assignment online.
Answer: 1.The scope and nature of budgets are to be ascertained with relevant colleagues, as consultation with them might lead to surprising outcomes. This is because ideas and suggestions could be obtained in relation to waste management, recommendations for improvement of supplier performance and efficient usage of resources (Barr and McClellan 2018). At the time of sharing information, the financial objectives should be related to performan...Read More
Answer: Introduction The report is based on the implementation of a proper ERP system within CLNRecycle Ltd. The company is one of the most owned and highly operated recycling company. The primary purpose of the company was based on providing different solutions for product that would be recycled. The products of the company were mainly sold is Japan, New Zealand and Australia. With the implementation of the various new kinds of processes wit...Read More
Answer: Introduction The objective of the given report is to answer the financial questions with regards to different aspects of NPV coupled with risk and return related discussion. In this regards, reference has been given to the portfolio theory and theoretical underpinnings related to capital budgeting. Additionally, the client investments have also been critically analysed in order to provide advice to the client with regards to the appro...Read More
Answer: Introduction: Investment analysis is crucial factor for the investors to identify the best security or asset to make an investment and get higher returns from the market. Investment analysis is an approach which focuses on various related factors of an equity and other investment products such as bonds and debt to measure the best product to make investment and get higher returns. It is important for the analyst and the professionals ...Read More
Answer: Requirement 1: Payroll management policies: Management of payroll is an important part of overall management of an organization. A standard payroll management system must have the following attributes to ensure efficient management of payroll system (Laudon & Laudon, 2016). Security: The security is of utmost importance in the payroll management system. The information in the payroll system should be secured a...Read More
Just share your requirements and get customized solutions on time.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
Fantastic writing! My professor said that it was one of the nest written papers for this week. Thank you very much for your awesome writing efforts.
Excellent quality assignment and ahead of dateline. Responses effectively when amendment requested. Thank you for the work, freeing me from the emotional journey.
Thank you very much for your wonderful help. I received an excellent mark for my assignment.
This solution was really good and on time delivery thanks for the good work, thanka