In: Accounting
a) NPV
The same with Excel Formulas shown:
b) NPV is the preferrable choice compared to Payback period because NPV takes the whole life of the project into consideration and also takes into consideration the time value of money.
c) The non-financial factors are:
Compliance with Legislation: The projects that the company is undertaking should comply with any current and future laws and regulation.
Employee Morale: Improving employee morale is one of the important non financial factors to consider. It can result in higher productivity, efficiency and lower employee turnover.
Relationship with Stakeholders: A company cannot function properly without stakeholders. Improving relationship with the varied stakeholders of the company is of utmost importance.
Maintain Competence: A company has to maintain or improve their competence to survive in the changing business environment.