Abstract:

This study examined the relative effects of investing in technology and its financial impact on the company. The analysis was based on primary data collected from the auditor of Motor Manufacturers (T) LTD which included the cash flow statement and income statements for the years 2015 to 2017. The review also included secondary data from previous researches in order to support the results and findings obtained. The findings of study show that companies investing in technology would bring a positive financial impact for the company. The results indicate that the company can bring higher returns and better liquidity through new technology however needs to maintain it throughout the years in order to bring constant improvement. In order to analyze the impact of investment in technology, the financial analysis would include the ratio analysis, budgeting, benchmarking, risk management and investment appraisal. The constantly changing environment increases the need of investing in technology however the negative financial impact becomes a concern for a company’s management. This therefore causes the management in neglecting the idea of investing in technology which does not bring any positive impact that it could have brought to the company if the management would have forecasted its’ financial and investment appraisal.

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