SHA Posted November 25, 2013 Report Share Posted November 25, 2013 I am doing my business internal assessment of choosing two different machineries for a company. I am most likely doing investment appraisal but I am not sure what data i need? - Cash flow forecast?- Cost of the productsWhat else do I need? Thank you. Reply Link to post Share on other sites More sharing options...
bluedino Posted December 3, 2013 Report Share Posted December 3, 2013 Well it seems like you should be using investment appraisal tools like the payback period and the average rate of return. A cash flow forecast would probably help you to work out the anticipated financial gain after buying the machinery. So to calculate this the data you'd need would definitely be how much the machinery would cost, as well as perhaps an estimation for how long it's 'life' will be, and anticipated financial gain per year/month. Maybe you could also calculate depreciation of the machineries? If so, you'd also need to know the residual value of the machinery (how much it is worth at the end of its useful life) and/or the rate of annual depreciation of the machinery. Not sure if this is what you were looking for but I hope it helps 1 Reply Link to post Share on other sites More sharing options...
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