Reference no: EM133077851 , Length: word count:1000
Business Decision Making - University of Suffolk
Essay on Business Decision Making
Learning outcome 1: Demonstrate knowledge and understanding on key decision theories and principles and interpret different approach to business decision making processes.
Learning outcome 2: Evaluate and interpret results generated by data modelling and forecasting techniques, including those provided by specialised statistical computer software
Learning outcome 3: Apply, and demonstrate an understanding of, relevant management science techniques.
Task Description: DDK plc is a textile company, operating in the UK and some parts of the Europe. Currently, the strategic managers of DDK plc are looking to invest in a project manufacturing beltsor trainers. They have called new business proposals and have finally, chosen two projects using managers' discretion to make final decision. Initial investment required for project A (belt) is £170,000 and for project B (trainers) is £190,000. The discount rate required is at 14%. The net cash flows for two projects can be summarized as below:
|
Year
|
Project A - Belt Project
Net cashflow £
|
Project B -Trainers Project
Net cashflow £
|
|
1
|
45,000
|
50,000
|
|
2
|
45,000
|
45,000
|
|
3
|
35,000
|
70,000
|
|
4
|
70,000
|
90,000
|
|
5
|
82,000
|
90,000
|
You are required to write an essay on business decision making, comparing the key aspects of the tools like the payback period and NPV, and financial and non-financial factors used to aid decision making.
Attachment:- Business Decision Making.rar