Investment Appraisal techniques required for proposed investment on the new digital photograhic printer.

Essay by kemzyUniversity, Master'sA-, March 2007

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Digico Plc has developed a digital photographic printer which the company believe has great potential. It is unique in that it can be adapted for any make of digital camera and will retail at an affordable price.

It is expected that sales would exceed the capacity of their existing factory and the company would require to provide additional production facilities and support staff.

The company will need to raise finance for the project.

You are required to prepare a report to the Managing Director outlining and justifying the steps to be taken before the project finally goes ahead. Figures are not required but it is necessary to spell out in detail exactly what techniques should be used and why these techniques (and no others). The order in which the steps should be taken is also required.

Your report should be of 2,500 words and be supported by academic references.

Marks will be awarded as follows;

Analysis and interpretation 65%

Integration of academic literature 35%

No. 1 New Market Road,




11th December 2006

Attention: Managing Director From: Financial Assistant

RE: Suggested techniques required for the proposed investment on the new digital photographic printer.

In reference to the meeting held on the 6th of November 2006, I have provided you with information below on the investment appraisal techniques and sources of finance that are available for the proposed investment on the new digital photographic printer. To clarify briefly on the information I received, it shows that the photographic printer inconsideration is intended to be unique, adaptable to any model of digital camera and also if accepted will be retailed at an affordable price. It has also been forecasted by the sales manager that product sales will exceed the capacity of the existing factory, therefore additional production facilities and...