Need an argumentative essay on Project Evaluation. Needs to be 5 pages. Please no plagiarism.Download file to see previous pages… The other option that Salsbury has is to open a health and fitness c

Need an argumentative essay on Project Evaluation. Needs to be 5 pages. Please no plagiarism.

Download file to see previous pages…

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Need an argumentative essay on Project Evaluation. Needs to be 5 pages. Please no plagiarism.Download file to see previous pages… The other option that Salsbury has is to open a health and fitness c
Post Your Own Question And Get A Custom Answer
Hire Writer

The other option that Salsbury has is to open a health and fitness complex and it has a NPV of ?700,000. Furthermore, the report justifies the technique that has been used in order to evaluate the project by comparing it with other project evaluation techniques such as Accounting Rate of Return and Profitability Index. Moreover, the report then discusses other factors that the organization needs to consider while making the investment decision. ANALYSING THE FEASIBILITY OF THE PROJECT Net present value (NPV) is the technique that has been used to analyze the feasibility of the project. NPV shows the net future cash flows of the project after being discounted with the discount rate so that the present value or present worth of the cash flows can be calculated (McLaney, 2009). In the appendix 1 of the report, the forecasted cash flows for the 10 years are calculated and net present value of these cash flows are calculated with the discount rate of 14%. …

is higher than health and fitness complex, therefore the management should invest in opening a retail store than the health and fitness complex as it has higher NPV and projects with higher NPV should be accepted (Jensen, 2001). JUSTIFICATION ABOUT THE METHOD USED TO EVALUATE THE PROJECT The management has used Net Present Value method to evaluate whether the project is feasible or not. Although there are different project appraisal techniques such as Accenting Rate of Return (ARR), Payback Period, Profitability Index, Benefit to Cost Ratio (BCR), Internal Rate of Return and discounted payback period etc. However, the report discusses two of these techniques. ARR ad Profitability Index and compares these two techniques with NPV and justifies why NPV is a good method used to evaluate the feasibility of the project. NPV and Accounting Rate of Return Accounting Rate of Return (ARR) is the average return that the project would yield throughout its time period (Gitman, 2003). It can be calculated using the formula below: By using the above formula, ARR of the project is 27.24% It is better to use NPV than Accounting Rate of Return (ARR) as the NPV discounts the future cash flows whereas the ARR does not consider the time value of money. Therefore it is better for the management to use NPV as it will show the real value or worth of the project by considering the discount rate and even inflation rate but these rates are not considered by using the ARR. NPV and Profitability Index The other method that has been used to evaluate the feasibility of the project is the profitability index. Profitability index is calculated by following formula: The formula shows that profitability index considers the time value of money which accounting rate of return does not.

superadmin (28431)
New York University

Hire an Expert to Help you

Hire Verified Expert

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Have a homework question? Get help from verified tutors now!

Are You Looking For Assignment Help? We Can Certainly Assist You

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • ~Dissertations
  • ~Essays
  • ~All Assignments

  • ~Research papers
  • ~Term papers