Business Development Plan for X Plc

TASK

X plc is the vehicle parts company, trading  in the UK market and in other parts of the Europe. Strategic managers of the organisation are looking for the investment in the new business. They have create a  new business proposals and lastly chosen 2 projects in manager discretion in respect to make final decision. Initial investment needed for the project A is $20000 and for project B is $30000. The rate of return expected to be 10%. The net cash flow for the two projects are given below:

year Project A- Technological project Project B- Mechanical Project

0  ($20,000)                                       ($30,000)

1  $8,000                                            $10,000

2   $10,00                                           $15,000

3  $12,000                                          $17,000

4  $ 15,000                                         $ 19,000

5  $ 19,000                                        $20,000

Write an essay on business decision making and covering the payback period and NPV, and financial and non- financial factors used to aid decision making.