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 20 January 2021].
My Assignment Help. 'Investment Appraisal Energy Storage Systems' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/investment-appraisal-energy-storage-systems> accessed 20 January 2021.
My Assignment Help. Investment Appraisal Energy Storage Systems [Internet]. My Assignment Help. 2018 [cited 20 January 2021]. 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: Data to different managers in an organization: For presenting the interpretation of data used in the analysis, it is necessary to convey the same to various internal parties within the organization and the external parties as well. In this case, the data interpretation would be conveyed to the following three personnel and/or institution: 1. Supervisor: The supervisors tend to look after the profitability of a proposed project or in...
Read MoreAnswer: Repairing and maintenance expenses including fuel cost are allowed as deduction. The fuel bill as well as other vouchers supporting the expenditures must be properly maintained in order to get deduction for these expenses. Using quality control and management system will be helpful in controlling expenditures on wages, vehicles and telephone. The accountants should use clear and specific terms in the recommendation. No vogue words ...
Read MoreAnswer Sustainable finance Overview of ESG priorities for global telecommunications based on SASB standard: The model that is used for scoring and evaluating the companies operating in telecommunication sector is based on ESG factors that are environmental, social and governance factors. Environmental factors accounted for environmental risks, management and opportunities. Social factors on other hand covered the management of human resource...
Read MoreAnswer: Introduction: The proposal of acquisition of a new machine i.e. the robotics systems by Terra Nova Plc requires huge investment of funds amounting £4,150,000. These investments are generally irreversible in nature therefore requires the critical evaluation using different tools and techniques of capital budgeting. Since, such an investment is to be made before taking up the project; the company must evaluate the appropriateness ...
Read MoreAnswer: Part A Transaction Analysis Chart Date Assets Liabilities Owner’s equity April 1 Cash increased by $160,000 Capital increased by $160,000 April 2 Cash decreased by $36,000 Land & building increased by $360,000 Long term loan increased by $324,000 April 3 Cash decreased by $21,600, Prepaid expenses increased by $3,600, Office equipmen...
Read MoreJust share requirement and get customized Solution.
Orders
Overall Rating
Experts
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. If you are unable to calculate word count online, ask our customer executives.
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
Im certain very pleased with the work done.All my requirements were very in detail meet. Thank you
Australia
You wont believe who just got 93% on the first assignment i asked you guys to do for me. Keep up the good work guys. I'm definitely going to tell my friends
Australia
The outcome was very good and satisfactory.I am planning to submit more assignments in near future.
Australia
Work delivered as requested, ahead of the deadline. Fully referenced, could not have asked for more. Thanks guys & gals!
Australia