Assessment Requirements – Part A and B

Prepare a report for Managing Director that evaluates the financial position and performance of the business in relation to: Profitability Efficiency (asset utilisation) Liquidity Gearing Investment Your report must be supported by the calculation of relevant ratios in the five evaluation areas mentioned above. (70%) All calculations should be clearly shown including all appropriate workings Your discussion of the should comment on: changes from year to year their potential implications for the business Critically assesses how each of the following techniques can provide useful information to guide managers in the business responsible for long-term investment decisions: Payback period Net present value You may include illustrative calculations to support your report and help to demonstrate your understanding (These should be clearly shown in Appendices, including all appropriate workings)