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Hello, I am looking for someone to write an essay on Rapidly Changing Technology, New Innovations and Globalization. It needs to be at least 3500 words.On the other hand, having zero investment also m
Hello, I am looking for someone to write an essay on Rapidly Changing Technology, New Innovations and Globalization. It needs to be at least 3500 words.
On the other hand, having zero investment also may not be the best scenario. Therefore, managers should undertake the projects like new technology deployment, knowledge management which may give a sustainable competitive advantage to the businesses. Capital investment decisions normally represent the most important decisions that an organization makes sense they commit a substantial proportion of a firms resources to actions that are irreversible. Expansion of business operations, acquisitions, modernization and replacement of long-term assets and sale of a division or business can be identified as an investment. Normally such investment will take more than one year period and it often includes investments in plant and machinery, research and development, advertising and warehousing facilities. Against this backdrop, this study seeks to explore effective techniques of making business investments and it will analyze the Discounted Cash Flow (DCF) in detail.
Managers apply the different criterion to evaluate investment decisions with the sole purpose of maximizing revenue generation. In current practice, managers use Discounted Cash flow (DCF) analysis to evaluate an investment in financial terms. Also, Payback method and Accounting Rate of Return (ARR) which make no adjustment for the time value of money are often considered. However, the DCF method considers the time value of money which is reduced progressively and it consists of Net Present Value (NPV) approach and Internal Rate of Return (IRR) methods. This could lead to more popularized investment appraisal techniques among the managers. In theory, it could be suggested that DCF method which encompasses NPV, as well as IRR, is superior to other methods. Consequently, NPV is also superior to IRR. Research has shown that the companies which do not practice especially the DCF method of investment in the UK often lag behind. Whilst the DCF technique is widely regarded .as superior, Koller (2006) has however identified some of the most frequent ten errors in the application of DCF model. .
