final year like project 4, or fluctuating cash flow like other projects. It shows pretty long-range, stable and safe characteristics. The value of NPV in project 5 is also positive, which means that the enterprise can get excess money over the initial investment. 7.7. Refer to above data analysis and background information, the listed company suffering two consecutive annual losses should apply the project 6. According to ST policy in China, it requires that for the listed company that reported two consecutive annual losses should henceforth be put into ST statue. Under the ST status, the company would be restricted by harsh and strict requirements, such as semiannual auditing report and being unenviable to raise additional capitals. Even worse, the company may be suspended from trading on the stock exchanges market if it reports one more loss. As company managers, we prefer to prevent the company being suspended and maintain the daily trading of company, which means that we need to generate the maximum return in the project next year. On the basis of project free cash flows statement, it shows that the cash inflow in project 6 is $2,200 which is the largest return among the 8 projects. NPV is not the necessary criteria for measuring the decision under this condition, but the priority is to present the positive figure in the following financial statement and offset the loss.
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