Accounting and Finance for the Decision Making of Nanoco Group Plc
In this report “Accounting and Finance for the Decision Making of Nanoco Group Plc” we discuss, The selected company is Nanoco Group refers as Nanoco Technologies Limited. As a nanotechnology company, the firm develops valuable strategies to improve the business’s current strategies. And fulfill the expectations of the customers.
The company has its production facility in the UK. Nanoco is unique in the nanomaterials market as a company that manufactures large quantities of higher-grade quantum dots.
Purpose:
This report aims to address the financial performance as well as financial positions by the change of the uncertain events. The impact of COVID-19 on the performance of the business addressed the financial changes and the hurdles for the company’s growth. This report analyzes the possible position of the business in the current technological industry.
The conclusion:
Calculating the Net Present Value, Payback period, and the accounting rate of Returns are addressed to take the business strategies in the possible ways. All of these activities will be taken to proceed with the broad operational forms and manage the current strategies toward the cleared values.
There are almost 4 to 5 years required to return the investment of the Nanoco company and build a higher financial position.
Recommendations:
Nanoco company should closely monitor the financial changes and manage the cash flow projects that address the possible era of the business plans. Contingency planning and risk mitigation strategies are the core directions that affect the business roles towards the cleared operations of the business values through the particular changes. The company should invest in brand portfolios to reach more markets.
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Proposed investment:
Why? Purpose:
Real problem:
Nanoco Group PLC is a world leader company in the development as well as the manufacture of cadmium-free quantum dots and other nanomaterials emanating from the technological platforms that were affected by the impact of the pandemics in the current responsiveness eras.
COVID-19 directly hits the sales, cash flow operating activities, and the business valuable process of the business.
Why is it important to resolve the problem?
Due to the impact of COVID-19, the performance of the Nanoco group is affected in the global market. So, it is important to resolve the problems that address the vital elements regarding business performance. With the change of government rules, the operations and financial performance of Nanco Group affected.
How? Process:
Problem caused?
These advanced resources become effective in taking the higher or sustainable values as leading the best responses in the future. By comparing the financial performance of Nanco Group with its previous position, the current activities of the business can be investigated.
Casual drivers:
The institution and governance system are the key drivers that impact the change of the business and uncertain conditions that take the better-addressed positions in the cleared forms of the business values.
What? Proposition?
What capabilities enable us to make necessary changes in drivers?
With the vision, method, and will, the evaluation of the profitability and the net profitability with the beverage cash flows are the key capabilities that are necessary to build the change in the boundary of the company.
The progress of the business was affected by the change in the cash flow that was required to initiate the operations of the investments. It is one of the important factors to grab the higher attention and manage the reliable progress of the Public and private businesses toward change.
Conduct investment appraisal:
Calculation of Payback period:
| Year | Initial investment: | Net cash flow from each year. | Payback Period. |
| 1 | 838,000 | 193,900 | 4 |
| 2 | – | 247,400 | 3 |
| 3 | – | 377,500 | 2 |
| 4 | – | 268,000 | 3 |
| 5 | – | 167,600 | 5 |
Calculation of Accounting Rate of Return:
| Years. | Net income (2022). | Proposed or initial investment. | ARR |
| 1 | -4395 | 193,900 | (0.02) |
| 2 | -4395 | 247,400 | (0.02) |
| 3 | -4395 | 377,500 | (0.01) |
| 4 | -4395 | 319,300 | (0.01) |
| 5 | -4395 | 268,000 | (0.02) |
Calculation of Net Present Value:
| Year | Investment. | Annual cash flows. | Total cash flows. | 19% | PV. |
| 0 | – 838,000 | – 838,000 | – 838,000 | ||
| 1 | – | 193,900 | – | – | 162,941.18 |
| 2 | – | 247,400 | – | – | 174,705.18 |
| 3 | – | 377,500 | – | – | 224,014.47 |
| 4 | – | 319,300 | – | — | 159,224.93 |
| 5 | – | 268,000 | – | – | 112,305.23 |
| NPV | – 4,809 |
Proceed with the proposed investment according to the Payback period, ARR, and NPV calculations:
Based on the calculation of Net Present Value, Accounting Rate of Return, and the Payback period, it is analyzed that the Nanoco company should proceed with the overall investment that helps to improve the business performance and evaluate the financial growth.
With additional capital for the business expansion and improving the overall funding research, the upgrading of the infrastructure, and expansion into the new markets, the business strategic performance becomes addressed.
Expanding more into the markets and having better manpower, the business values play an integral role. The generation of reinvesting earnings and providing the extra cash flow, the organizational plans will be addressed in the current operations.
For the Nanoco company, developing the core investment opportunities is important. The net present value of the company indicates that there are -4809 average values to proceed with the profit and building success in terms of investing in the particular era can take place.
By adding the large intensive area and taking the best activities, the business roles must be addressed towards the cleared or sustainable positions. The evaluation of the business funding and the investing opportunities becomes raised as the specific era of the success.
The Nanoco Group needs to evaluate the strategic performance that motivates it to address the business processes. The evaluation of the payback period analyzes that there are almost 5 years required to complete the entire performance of the study and maintain the business directions.
These active areas will proceed with the business processes and address the better commitments that take the valid or the core valuable resources. Building the organizational performance and the generation of the advanced areas, the business responses can be addressed. Building the organizational responses and increasing the performance of the development of net present values must be analyzed in the proper way.
From the calculation of the net present value of Nanoco company, the cashflow period of each year is useful to generate the best planning and address the useful; era regarding the greater success. Investigating the large growth networks and leading the best planning, the business classification must be addressed.
An evaluation of financial performance represents the large intensiveness that addresses the organizational growth and takes the detailed presence at doing the sustainable roles of the business. For gaining the competitive edge over the broad competent and possible reasons for the investigation in IT systems there is a proper edge on the fantastic business activities can be taken as the reliable ways of the business processing.
Factors that the company should consider concerning potential investment in this new machinery:
Political:
Nanoco company’s financial performance and investment decisions are affected in the global market by the change of the rates of takes as well as the entire level of the conflicts that addressed the possible era of the business facilities.
Economical:
The evaluation of the level of income as well as the inflation rate of the country in which the Nanoco company decided to expand its operations and proceed with the functions. These are economic forces that affect the business roles through the sustainable era of success.
Social:
The development of a broad education level, the investigation of the lifestyle, and the religions of the sociality enforced to affecting the organizational planning that addressed the business functions. For determining the organizational functions and building growth, the current resources can be addressed in the future.
Technological:
The change of trends to use advanced technology and build improper research and development practices in the management of the business affects the business performance towards the integrated era of success. For boosting the organizational plans to implement the change, the business roles are addressed in the future.
Environmental:
The evaluation of environmental policies, recycling certain trends, and the broad trends of the consumptions with the entire production process are the core natural risks that affect the business strategic plans.
Legal:
Nanoco company’s operations are affected by the address of controlled marketing, building the entire level of regulations, the entire level of the security of the jobs that taken the business valuable trends and addressed the higher roles of the business positions.
Consumptions laws:
Due to the change of rules and regulations by the government of the country, the management of the business developed advanced operations that take better responses and address the most useful era of the business success. Controlled operations of the marketing and proceeded the wages, the current activities become strong in the financial perspectives.
Process of production:
With the change of certain trends, the overall production process of the business is affected that impacts the business intentions and takes the cleared roles in the future. The evaluation of the lifestyle and the certain trends of the business are addressed to take the higher roles in the business process values.
Discussion of the risk and return:
Sensitivity analysis for the risk:
There is a valuable tool that is used to examine the changes in certain variables that affect the results of the particular model or the analysis. The broad contact of the financial analysis, particularly evaluating the investment projects and building the sensitive analyses helps to proceed with the changes in the key part-timers.
In terms of cost of capital, the discount rate over the values shows how sensitive the NPV is to create the change in terms of the cost of capital. It can be done by raising the discount rate by a certain percentage from the base case. The initial investment of Nanco group was 838,000 which indicates the cash flow operations over the certain years that addressed the business practices.
Potential impacts on the company’s financial performance and position:
In the financial management of Nanoco company, the risk and return are the particular values associated with the investments. The company invests a higher amount in the business performance and usually higher risk invested as they yield better financial returns. To proceed with the low-risk investments and gain better financial results.
The particular operations can be organized in the future. It is one of the best and the most processed changes that addressed the business changes. Nanoco company’s financial performance and position become strong or lead to positive value by addressing better change and improving the overall applicable processes.
The concept of risk and return makes the Nanoco company applicable for the possible economic loss or gain. By investing in the key securities and gaining a higher return on investment, the business will be able to proceed with the particular investments.
Discuss any Foreign Exchange Risk and Dividend Policy:
The change of the fluctuation of the currency is the foreign exchange risk that affects the operations and the financial performance of the Nanoco company. On the other hand, dividend policy shows the number of dividends paid out by the firm to its key shareholders and the frequency the dividends are paid out.
Nanoco company “paying the regular dividend” is the dividend policy that addresses the key changes in the financial performance and the position of the business.
