Accounting and Finance for Decision Making of Carr’s Group Plc
In this report “Accounting and Finance for Decision Making of Carr’s Group Plc” we discuss, Carr’s Group Plc is a company in the global market that focuses on the investment of engineering and agricultural sector.
The company developed various investment opportunities in the key sectors that initiate the business responses and take the valuable plans regarding the instant practices. For determining the business operations and adding the current roles, the business values must be addressed towards future growth opportunities.
This report aims to evaluate the impact of COVID-19 as the major economic issue that affects business performance and takes valuable strategies. The pandemic affects businesses and the economy dramatically so, the current consideration of the business sustain builds the growth practices as the form of the giving terms.
This report evaluates the proposed investment decisions that affect the organizational direction and take vulnerable roles in the future.
By evaluating the Net Present Value, Accounting Rate of Return, and Payback Period, it is analyzed that the company should develop the most operations of the investment. It helps to raise the organizational directions and examine the business possibilities towards future practices.
Analyzing the potential impacts and building reliable sources, the organizational performance is addressed to increase the organizational functions. Assuming the Chief Financial Officer activities, the business roles can be addressed toward the investment opportunities.
CGP company should conduct the proper financial analysis that helps to increase the performance and manage the greater activities towards the business plans.
Short-term returns and the growth of the business are the valuable activities that help to increase the organizational performance and manage the valuable activities in the future. Higher risk-investments may encounter the organizational activities and improve the proposed decisions of the investments.
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Motivation for the proposed investment: Accounting and Finance for Decision Making of Carr’s Group Plc
Why? Purpose:
What is the real problem?
Due to the pandemic of COVID-19 that affects the business and the economic conditions, the Carr’s Group Plc is a performance impacted. The financial progress and the economic concerns of the business have declined impacting the future sales of the company in the operating market. The chances of several risks appear by this problem of the business.
Why is it important to resolve the problem?
It is necessary to resolve the problem because proceeding with the operations of investment helps to engage in the relevant market and build the most valuable activities of the business. Through resolving the current problem, the organizational capabilities can be addressed through the use of advanced values as updated in the business directions.
How? Process:
How is the problem being caused?
This problem is caught by the analysis of the fluctuation of the changes in the cash flow activities that occurred from the initial investments. The financial performance, net income, and gross profitability of the CGP company fluctuate due to the impact of COVID-19 as the major issue of the business’s stability.
How must casual drivers of the problem change?
Due to the economic indicators and the trends of the industry, the causal drivers of the problem change in the CGP company can be observed. The Gross Domestic Product and the Inflation Rate are the current activities that need to be organized to develop the core strategic activities toward the business plans.
What? Purpose?
The purpose of analyzing the causal drivers of the problem change is to build the proper understanding of the investment decision that takes the proposed directions and adds greater repressions. By adding sustainable forms and building reliable planning, the business should take the higher roles.
What capabilities enable necessary changes in drivers?
The capabilities of adaptability and innovation are required to implement the necessary changes in the drivers of the CGP company. The evaluation of proper financial analysis and maintaining the best in-=class services, the organizational supportive plans become valuable at the given or proceeded activities. These types of cash flow activities become attached to get a higher commitment and certain decisions.
Conduct the investment appraisal by hosting both qualitative as well as quantitative information:
Calculation of the payback period for the proposed investments:
| Years | Investment. | Net cash flow from operating activities. | Payback Period. |
| 1 | 790,000 | 176,500 | 4.476 |
| 2 | 220,000 | 3.591 | |
| 3 | 81,000 | 9.753 | |
| 4 | 126,200 | 6.260 | |
| 5 | 182,100 | 4.338 |
Calculate the Accounting Rate of Return for the proposed investments
| years | net income | Initial Investment. | APR |
| 2021 | 0.03 | 790,000 | 0.00 |
| 2022 | 0.07 | 790,000 | 0.00 |
Calculate the Net Present Value for the investment period:
| Years. | Investment. | Annual Cash Flow. | Discount rate 5% | PV |
| 0 | – 790,000 | 5% | – 790,000 | |
| 1 | – | 176,500 | – | 168,095.24 |
| 2 | – | 220,000 | – | 199,546.49 |
| 3 | – | 81,000 | – | 69,970.85 |
| 4 | – | 126,200 | – | 103,825.05 |
| 5 | – | 182,100 | – | 142,680.11 |
| NPV | – | – | – | – 105,882 |
Comment on whether the company should proceed with the operations of the investments:
Based on the market conditions and the strategic alignment operations, the management of the business develops the core areas regarding the greater forms of the business directions. The Net Present Value for the CGP company is (105,882) which indicates that the company should improve the opportunities of the investment by developing greater values and addressing the cleared changes Giving the larger possibles and addressing the better strategic components, the business roles must be analyzed to get the sustainable operations.
In terms the better planning and building the cleared forms in the future. Building the organizational performance and managing the greater directions, the business roles are addressed to take the higher connections. Due to the strategic alignment of the company with the objectives of the business, the business operations become addressed in the future
The violability of the resources and determining the firm’s role that takes the business responses. Net Present Value is a valuable tool for decision-making that increases business operations and maintains the greater forms of business roles. Sensitivity analysis helps to increase the organizational performance and determine the current operations in the future.
The primary objective of the company is to understand the financial performance that will provide better knowledge for the financial growth of the business. As the crucial energy elaboration, the financial health of the business becomes valid till take the valuable responses.
Carr’s Group Plc is a well-known investing company in the engineering as well as agricultural sector that affects the performance of the business. As a well-known company in the global market, the development of the proper solutions is based on the payback period. In the fifth year, there are almost 3 to 4 years required to retain the investment and get the higher profitability of CGP company.
Factors that the company considers about potential investment in this new machinery:
The financial performance of Carr’s Group Plc indicates that the Return-on-Investment is one of the most reliable and valuable processes that address the business responses to achieve higher success. Building the advanced operations and focusing on the return on investment, the net present value of the business defines the positive attitudes towards the investing decisions.
CGP company accesses the technology to focus on the advanced technology that helps to build the effective rate of return investment. To enhance the performance of the business and take the valuable scenario, the organizational functions will be addressed at specific moments. Focusing on the technological and operational feasibility, the evaluation of the business performance becomes addressed in the future.
By adding the organizational performance and managing the current values, the business roles are added to take the higher strategic positions.
CGP company can make the potential investment from the annual cash flows that initiated by the sustainable dates and the organizational core practices as doing the valuable plans in the change management techniques.
Building the organizational success and updating the valuable roles, the business forms can be addressed to improve the change. Financial stability and liquidity are the important parts that help to increase the business performance and take the detailed values to take the higher sustainable operations.
The evaluation of cost-benefit analysis helps to integrate the organizational planning and managing the better activities towards the clear plans.
CGP company evaluates the legal compliances to improve the operations of the proposed investments that increase the business functions and address the greater responses. To enhance the performance of the business and manage the greater values, the business roles can be addressed in the possible activities.
The revenue of the organization can stream to take the advanced operations and build valuable strategies in the future. The company should develop effective prosed decisions on the investment that help to increase the organizational performance and manage the coordinated activities.
With the use of effective plans and addressing the cleared operations, the business roles must be addressed in the strategic positions as examined in the change.
SWOT analysis:
| Strengths: Higher control over the main decisions of the company. The company has an accessible capital. | Weaknesses: The challenges of administrative and accounting. Ideas can be business models and the public can easily be stolen. Weaker protection of the investor. |
| Opportunities: Utilizing the power of social, networks.Positive effect on crowd-forward economy. | Threats: Current legal restrictions.Risky nature of small business. |
Critically discuss the risk and return and its potential impact on its financial performance:
Conducted the sensitivity analysis of the risk:
The sensitivity analysis of the risk and return indicates how the company’s risk affects the financial performance of the business It is one of the best and the most valuable tools to address the organizational practices and take valuable roles in the given forms of the success.
The amount of Net Present Value for the CGP company is – 105,882 which addresses the cash flow statement and the initial investment of the business. The amount of initial investment for the 5 years is 790,000 which is enough to initiate the overall performance of the CGP in the fluctuating economical terms.
The evaluation of how the business can maintain the organizational responses and manage the current operations towards the cleared forms of the business directions. Proceeding with the business roles and managing the current functions, the business planning becomes affected.
CGP company’s Scrap value is 158,000 which indicates the estimated value for the entire project to address the business policies and raise the organizational learning.
Discussion of risk and return and potential impacts on the financial performance and position of the company:
The risk of CGP company refers to the uncertain or unexpected events that relate to an investment. On the other hand, Return is the gain or loss that is generated to evaluate the business performance about the organizational direction.
In finance, Risk is typically associated with addressing the possible actions and maintaining the cleared areas of the success regards the proceeded knowledge.
The business performance of CGP is affected by risk and return in terms of revenue and profitability, market share, and the cost of capital.
Building the effective capital structure, improving the ratings of the credits, and building investor perceptions, the organizational responses become addressed to take the higher sources in the future. So, the business must resolve all the risks that affect the business planning and maintain the core strategic activities.
Discuss any foreign exchange risk and dividend policy:
CGP company relates to international trade and investment so, the subsidiaries are exposed to gain financial insights. It can expect the sales revenue and the cost savings to maintain the reliable activities of the business.
CGP company often uses hedging as the technique of Foreign Exchange Policy against the diverse moments of the exchange rates. The dividend policy of CGP company relates to the shareholder preferences that examine the large growth areas of the business.
