Academic Report and Financial Calculations 04033 Essay

Academic Report and Financial Calculations 04033 - Essay ExampleIts appropriateness is examined and the benefit is extracted so as to decipher whether it is acceptable by the company in the present situation (Schlingemann, Stulz and Walkling, 2009 Valipour, Moradi and Farsi, 2012). This is essential for growth a strong business relation between the suppliers and companies. The suppliers should abide the policies that are followed by the company. Similar baptismal font is seen in the case study of LJC Ltd.LJC Ltd is fruit and veg supplier, who aims at delivering value and good quality handpicked fruits and vegetables to the dwarfish retailers. Though it is a family run business, but it has seen success in the past 80 stratums by dint of their business operation as a constant effort to connect to big companies.LJC Ltd is trying to transact with the small supermarket chain known as Co-share for the past twelve months. The deal is to manage the fruit and vegetable packing and dis tribution of Co-share. Co-share has 160 stores that are operating in South East and Midlands. The company is in truth strict regarding the business ethics and the fair trade policies. For LJC Ltd, the contract will increase the volume of products, which are managed by the business. In order to assist Co-share in their business, LJC Ltd has to use fair trade products and develop outmatch HR practices such as equality policies and staff development. Project A and B is evaluated for identifying the best purge for LJC Ltd.Payback period is the span of time, which is required for recovering cost of investment that is made by a company (Valerie, Cook and Ali, 2010 Mari, Kamberovi and Radlovacki, 2011 Amihud and Mendelson, 2010 Arshad, 2012 Easley and OHara, 2009).As per Appendix 1a, it is observed that the project A will nonplus positive cumulative cash flow in the third year. Therefore, payback is calculated on the stem of the positive cash flow that is incurred from the project. The cumulative cash flow at the end of 4th year is 60500. Therefore, by