Essays on Investment Decision

BUSINESS MANAGEMENT AND DECISION-MAKING PROCESS: CAIFU

Executive Summary Caifu, in an effort to maintain its growth and sustainability, looks to invest its money in a credible organization that has a sound management system and trustworthy leadership. Currently, the companies at its disposition include H&M and Next. Prior to committing any initial capital outlays to one of these companies there is a need for a very thorough analysis in relation to what choice would be lucrative to Caifu especially in the long run. As an employee affiliated to Caifu and its interests, I have been asked to come up with a management report to forward to ...

Problem Statement: While the equity investment decision in HydroFruit, Inc. is expected to be extremely profitable, it has to be weighed against the ethical considerations that the tomato farm may employ an immigrant workforce, as well as the legal considerations that may result in fines and imprisonment for businesses that knowingly hire undocumented workers .

After 2005, employers are required to verify to the best of their ability, that the seasonal workers they hire are legally authorized to work within the U.S. HydroFruit, Inc.’s voluntary participation in the Immigration Reform and Control Act (ICRA) reduced the company’s liability ...

Part A – Company’s Background 3

Part B – Comparative Financial Data of Last Three Years 3 Part C- Comparative Financial Performance Analysis from 2013 to 2015 5 Current Ratio 5 Inventory Turnover and Receivable Turnover 6 Total Debt Ratio 7 Net Profit Margin 8 Key Findings and Investment Decision – Conclusion 9

References 10

Comparison of Financial Performance between PepsiCo and Coca-Cola from 2013 to 2015 Part A – Company’s Background This research aims to compare financial performance of PepsiCo and Coca-Cola Company from 2013 to 2015. These two companies are actually market leaders as well as largest competitors to one another in the global beverage industry. Both ...

Chapter I. Firm foundations and castles in the air

The chapter focuses on the two investment theories, the castle in the air and the firm foundation. According to the firm foundation theory, investing involves knowing the real value of the investment and make decisions based on the real value. One of the examples to explain the concept is investing in Coca-Cola Corporation wherein investing in the company’s stocks requires determining the actual value of the company. In terms of the castle in the air theory, the concept implies that investments should be a response to what others are doing, and the returns for such investment can be ...

Introduction

Definition of Managerial Accounting Businesses must implement effective decisions at varying phases of growth through management accounting for a chance of a future. According to an article on the Harvard business Review, businesses mainly go through two main phases of growth: the start-up phase or the mature phase. According to Churchill and Lewis, each of these phases demand and rely on differing strategies that fulfill a need and/or takes the business to the next phase. The techniques used or applied to haul business through these phases are referred to as managerial accounting techniques. The parties responsible for reinforcing managerial ...

Question No. 1 - Statement of the Incremental Cash Flows over 8-Year Period

Based on the given information and data, the following statement is extracted to reflect incremental cash flows for each year accompanied by a table showing calculation of depreciation expense using straight line method:

Question No. 2 - Payback Period (PBP) and Net Present Value (NPV)

Payback Period (PBP) The period within which the initial investment in project could be recovered represents the Payback Period (PBP). The criteria of making investment decision in case of this capital budgeting technique is that any project that has a Payback Period (PBP) beyond the one “required” by the business is ignored. In the same manner, only those projects are accepted that help an organization recover ...