Financial Management. Investment Appraisal Report of Organique for Archers Organic Foods Plc

1.0Introduction 1.1Archers Organic Foods Plc (AOF) is an established firm of 22 years, specialising in the production of organic foods within the UK. The company has to date, successfully branded their products which are mainly sold via independent quality food retails. To facilitate this, the company also successfully undertakes its own packing and distribution of products. 1.2The present Directors of AOF are now looking to further the long-term success of the company by both diversifying and …

…the following: - Exchange Rates - Fluctuations in exchange rates. These are likely to vary considerably over time and are on the whole difficult to predict. Tax - Foreign investment will be subject to variations in economic policy by the host government that may effect cash flows. The host government may block repatriation of profits to the host country On the plus side, incentives may be offered by the host government to encourage inward investment