Investment Appraisal, Sources Of Finance & Working Capital Pear Limited Designs And Creates Portable Music Playing Devices: Financial Management Assignment, UCD

Task Summary:

This task requires learners to research the topics of investment appraisal techniques, working capital and sources of finance, and then apply the knowledge gained to the company “Pear Limited” based in Cork.

Part I – Investment Appraisal

Learners will research different capital investment appraisal techniques and apply those techniques and elements to a scenario provided. Learners will include in their report an analysis of both discounted and non-discounted techniques of capital investment appraisal. Learners will be required to create and demonstrate models of capital investment appraisal techniques.

Spreadsheet software may be used.

• Types of Investment Appraisal methods including the advantages and disadvantages of each method. The methods critiqued should include but are not constrained to the following:
  1. Payback
  2. Discounted Payback
  3. Accounting Rate of Return
  4. Net Present Value
  5. Internal Rate of Return

• Evaluation, using the scenario given for Pear Limited, of the following: Apply the Net Present Value Method and provide a recommendation as regards whether Pear Limited should proceed with building the production facility Additionally, provide an alternative computation using the payback method to establish the payback period for Pear Limited Ireland if the production facility is built.