Requirements for the Business Report:

Prepare a report to the board of directors of Photoequip Ltd. that:

1. Analyses and comments on the past performance of Apple-Ready Products between 2019 and 2021 and on the forecast for 2022. The commentary on the performance should be informed by appropriate ratio analysis.
2. Based on the forecast cash inflows provided, prepare an investment appraisal using discounted cashflow models and the non-discounted cashflow payback model of investment appraisal.
3. Recommends an appropriate budgeting technique to apply to the combined entity assuming the acquisition is to proceed in 2023. This recommendation should justify why the recommended technique is appropriate, and briefly discuss any alternative techniques stating why they have been discarded.
4. Explain why the forecast for FY 2021 based on management accounts might differ from the financial statements when they are published.
5. Based on your analysis, the report should make a clear recommendation to the board sub-committee as to whether Photoequip should proceed with the investment with a clear justification for your recommendation.
6. You may include any other elements in your Report that you feel may be relevant to the decision