Premium Essay

Managing Financial

In: Business and Management

Submitted By leduy1088
Words 1149
Pages 5
Executive Summary

This report provides main analysis Maxwell Ltd and Punggol Limited how to use investment appraisal techniques to evaluate a project’s viability and compare the difference of NPV and IRR.

The team have to select and use appropriate forecasting methods to enable cost and revenue of cash flows forecasts to be constructed for Maxwell Ltd, adjusting for expected movements, on the basis of both Strategic Option 1 and Strategic Option 2. Then, the team has to select appropriate sources of funds for Maxwell Ltd and make recommendation on the best ways of raising sources of funds for the selected strategic option.

Punggol Limited mini-bus investments within three years and director of the company has considered the two financing options. Company must use the authentication method to make investment decisions. must choose the appropriate financial information and make strategic investments. Then the company must be audited in accordance with the Investment project decisions.

1. Introduction for Maxwell Ltd Investment Project
Evaluation Method.

Maxwell Ltd produces a mobile phone model known as the IMobile. Maxwell Ltd's board of directors meet in order to discuss business strategy for the coming year. The sale director advocates an aggressive strategy (strategy option 1), involving new investment, high inventories and an expansion of sales. The finance director advocates a conservative strategy (strategy option 2) involving no new investment, minimizing inventories and the adoption of a 'TIGHT' credit policy on sales.

The team have to select and use appropriate forecasting methods to enable cost and revenue of cash flows forecasts to be constructed for Maxwell Ltd, adjusting for expected movements, on the basis of both Strategic Option 1 and Strategic Option 2. Then, the team has to select appropriate sources of funds for Maxwell Ltd and

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