Campion Pumps are one of Irelands leading pump manufacturer’s in Ireland. Campion Pumps is a family owned manufacturing company based in Tipperary with a new office and factory recently opened in Dublin. Campion Pumps manufactures water pumps for industrial, agricultural and domestic users in Ireland but they also work alongside a company called Lowara who export Campion pumps products worldwide. The company has also supplied pumps to county councils and famous hotels around Ireland which has given Campion Pumps recognition around the country. Considering there is limited capacity to increase its production levels because of customers not realising the advantages of owning their own well and the profitability for the future that a well will
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It shows that as time progresses employees become more efficient at their job resulting in producing products faster. This is a vital tool for manufacturing companies to see how much they can produce over time which will give them an idea on how much capital the company will make.
Net present value is a tool which is used by businesses which allows them to calculate and compare whether an investment will achieve a target profit after they have been discounted by a specified rate of return. If the calculation returns with investments with a positive value then this would mean the companies investment will be successful but if there is a negative net present value, it means there will be a loss and companies should not invest the money.
Payback is a financial accounting tool which allows companies to see how long it will take before the investment is paid off. This method will give them a strong idea of the year and month that the investment will be paid …show more content…
It will allow Campion’s to evaluate and compare different projects together taking into consideration all the variables and it will give an exact figure of the profit/loss that the project will turnover. This is a huge positive giving us the power to have an option on what projects we will go with. Campion’s can compare these projects and rank them from the project that has the most potential to the least potential.
It calculates all the overheads that we are using giving us information on what we are spending most of the money on. From this observation, we will then consider what costs we can cut back on to decrease our overheads followed by an increase in profitability.
NPV - Disadvantages
There are some disadvantages with the management accounting method, NPV concentrates on the information it is given. The company will need to be certain of the overheads otherwise if overheads are not correct then the NPV will not reflect the actual
It shows that as time progresses employees become more efficient at their job resulting in producing products faster. This is a vital tool for manufacturing companies to see how much they can produce over time which will give them an idea on how much capital the company will make.
Net present value is a tool which is used by businesses which allows them to calculate and compare whether an investment will achieve a target profit after they have been discounted by a specified rate of return. If the calculation returns with investments with a positive value then this would mean the companies investment will be successful but if there is a negative net present value, it means there will be a loss and companies should not invest the money.
Payback is a financial accounting tool which allows companies to see how long it will take before the investment is paid off. This method will give them a strong idea of the year and month that the investment will be paid …show more content…
It will allow Campion’s to evaluate and compare different projects together taking into consideration all the variables and it will give an exact figure of the profit/loss that the project will turnover. This is a huge positive giving us the power to have an option on what projects we will go with. Campion’s can compare these projects and rank them from the project that has the most potential to the least potential.
It calculates all the overheads that we are using giving us information on what we are spending most of the money on. From this observation, we will then consider what costs we can cut back on to decrease our overheads followed by an increase in profitability.
NPV - Disadvantages
There are some disadvantages with the management accounting method, NPV concentrates on the information it is given. The company will need to be certain of the overheads otherwise if overheads are not correct then the NPV will not reflect the actual