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Important for stakeholder
Date Submitted: 04/20/2004 10:04:55
Executive Summary
It is important for SREC to recognize the mission and objective, as Sodor Railway Engineering Corporation Plc (SREC) has recently become privatization. The objective which is whether shareholder or stakeholder such as employees, government and customers interests should be taken account, is vital for financial decisions making to take place. The different group will bring SREC different outcomes or benefits.
I would suggest that SREC takes the shareholder into account when making decisions
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rate as well as inflation rate to be low. As lower rates will result in higher Net Present Value and vice versa and even a negative NPV.
In general, the greatest NPV will be given when low real rate, general inflation rate, nominal rate and specific inflation in value of cost but high specific inflation rate in value of revenue with consideration of inflation. The higher the NPV is, the more viable of the project.
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