Manufacturing Of Fireworks For Dragon Ltd Essay - 917 Words

1 Introduction 1.1 The report is about the two machines that will suit the purpose of manufacturing of fireworks for Dragon Ltd. One is Clayton Ltd, a local company and the other is Kendall Ltd, an Australian company. 1.2 The purpose of the report is to choose the best suited company with which Dragon Ltd. can pursue their project and also can sort out their working capital issues. 2 Overview 2.1 NPV gives explicit consideration to the time value of money. It is used in capital budgeting of project to analyse the profitability of an investment. NPV is used to make accept or reject decisions. If NPV $0, accept the project. If NPV $0, reject the project. IRR is defined as the discount rate which equates NPV of all cash flow of a project to zero. If IRR is equal to or greater than cost of capital, accept the project. If IRR is less than the cost of capital, reject the project. 2.2 Cost Of Capital is the rate of return a firm must be paid on its project investments to uphold value of their shares. NPV helps us to find out either the cost of capital we invest in a project for long term is feasible or not. If NPV 0, cost of capital is acceptable. If NPV 0, cost pf capital is not acceptable. IRR can be viewed as the maximum cost of capital that a project could sustain and remain conventional. The degree of acceptance increases with the increase in IRR. 3 Findings and recommendations 3.1 Attached in the excel sheet 3.2 On the basis ofShow MoreRelatedComparative Study of Pakistan Chinese Cultures13385 Words   |  54 Pagesusually eat Jiaozi or dumplings shaped like a crescent moon display, visiting and greeting, Yangke dancing, lion and dragon dancing, holding temple fairs and many other great folklore-inspection events. the New Year. It is celebrated in the first day of a year in lunar calendar, usually between on that special day. As for recreational activities during the Spring Festival are fireworks 7 Comparative study of Pakistan and Chinese Cultures 2013 Lantern Festival Chinese lunar month. It is closely