Question: 2. The organisation reviewed in question 1 is considering 2 possible investment opportunities which are: - Implementation of a new enterprise resource planning (ERP) system
2. The organisation reviewed in question 1 is considering 2 possible investment opportunities which are: - Implementation of a new enterprise resource planning (ERP) system - Expansion of the current operations into another geographical location As an organisation, management need to have an understanding of the financial viability of the potential investments in order to make an informed decision. a) Explain how you would go about evaluating the proposed investment using at least three different evaluation methods in order to obtain an understanding of the financial viability of the investment so that you can make a decision. In your explanation describe any three of the different methods. Evaluate which one of these methods used is the best for this particular decision. Motivate your answer. (20 marks) b) Describe any potential negative issues of the chosen method which you should be aware of. (10 marks)
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