Return on Investment Case Study
Return on Investment case study
Table of Contents
INTRODUCTION ................................................................................................................................. 2 Return On Investment ................................................................................................................... 3 PART 1............................................................................................................................................... 4 Comparison among Payback, ARR and NPV.................................................................................... 4 PART 2............................................................................................................................................... 6 Payback method ............................................................................................................................ 6 Accounting Rate of Return (ARR) ................................................................................................... 8 Net present Value (NPV)................................................................................................................ 9 PART 3............................................................................................................................................. 11 Project Selection for D& J ltd ....................................................................................................... 11 REFERENCE...................................................................................................................................... 12
1
INTRODUCTION
Three different options are taken under consideration by D& J ltd to successfully choose a suitable project. These options are: Option A – No change to technology. Additional manufacturing test systems would be required however. Option B - System redesign to reduce cost, and offshore subcontract Option C - Full custom microelectronics design The financial
Table of Contents
INTRODUCTION ................................................................................................................................. 2 Return On Investment ................................................................................................................... 3 PART 1............................................................................................................................................... 4 Comparison among Payback, ARR and NPV.................................................................................... 4 PART 2............................................................................................................................................... 6 Payback method ............................................................................................................................ 6 Accounting Rate of Return (ARR) ................................................................................................... 8 Net present Value (NPV)................................................................................................................ 9 PART 3............................................................................................................................................. 11 Project Selection for D& J ltd ....................................................................................................... 11 REFERENCE...................................................................................................................................... 12
1
INTRODUCTION
Three different options are taken under consideration by D& J ltd to successfully choose a suitable project. These options are: Option A – No change to technology. Additional manufacturing test systems would be required however. Option B - System redesign to reduce cost, and offshore subcontract Option C - Full custom microelectronics design The financial