We would like to acknowledge all the help we have received from our lecturer in collecting the data and using the cases. Besides, every member in our group is contributed in completing the report averagely.
Investment appraisal techniques are adopted to assess whether or not capital expenditure on a particular project will be profitable. This report is able to present the weakness and strength of the techniques according to the wind turbine system project of McCain Foods Company. Payback Period, Average Rate of Return (ARR), Net Present Value (NPV) and Internal Rare of Return (IRR) are used to figure out positive or negative about this project. The McCain Foods decides to invest to wind turbine system through using these investment appraisal techniques. Consequently, the recommendations we proposed in the last part of report to help the firm deal with the weakness of the appraisal techniques.
Our report focus on a company called McCain Foods which produce frozen chips worldwide. The company started working in 1957 and grew dramatically among UK market today. The amount of frozen potato products produced by McCain Foods in UK is around 45 percent. On this basis, the process of transforming raw materials into completed products needs to use energy, so McCain is looking for measures to reduce gas and electricity uses and make it more environmentally-friendly. The project launched by McCain Foods is installing wind turbines system at Whittlesey plant. They need to assess whether it worth doing by using several analysis methods of investment appraisal techniques.
How McCain Foods Company Operates
McCain Foods pay attention to constant innovations and to ensure the diversity and quality of its products. McCain’s products using raw materials, such as potatoes, meet customers’ needs and make them willing to buy. During this process, it may has a certain of costs, for example, raw materials, employment,...