TASK DD plc is a vegetarian food manufacturing company, operating in the UK and

TASK
DD plc is a vegetarian food manufacturing company, operating in the UK and

TASK
DD plc is a vegetarian food manufacturing company, operating in the UK and some parts of the Europe. Currently, some of their productions such as smoothies and non-diary milk have been outsourced due to lack of available resources. However, strategic managers of DD plc are looking to invest in a project producing smoothies or non-diary milk. They have called new business proposals and have finally, chosen two projects using managers’ discretion to make final decision. Initial investment required for project A (smoothies) is £158,000 and for project B (non-diary milk) is £155,000. The discount rate required is at 15%. The net cash flows for two projects can be summarized as below:
Year Project A – Smoothies Net cashflow £ Project B –Non-Diary Milk Net cashflow £
1 72,000 71,000
2 78,000 73,000
3 82,000 97,000
4 110,000 118,000
5 125,000 121,000
You are required to write an essay on business decision making, comparing the key aspects of the tools like the payback period and NPV, and financial and non-financial factors used to aid decision making.
1000 words maximum.
FORMATTING AND LAYOUT
Please note the following when completing your written assignment:
1. Writing: Written in English in an appropriate business/academic style
2. Focus: Focus only on the tasks set in the assignment.
3. Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard referencing throughout is also provided.
4. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.
5. All referencing should be in Harvard style.8-10 min