Management of Financial Resource and Performance PGD Level, 7. MAY 2011.

Student Assignment Brief

Course Unit Title Lecturer Issue Date Post Graduate Diploma in Business Management Management of Financial Resource and Performance Muhammad R. Bhatti Session April 11- AUG 11 15 /07/ 2011 Submission Date To be confirmend

Martin & Collin Printers

A decision making situation is being faced by Martin and Collin printers. They have a plan to replace the old die making machine with a new hi-tech multi tasking die making machine. For this purpose old business will be closed and new operations will be started. The total financial feasibility of the machine which includes cost of installation would be 4.2 million. The financial plan for the machine is, partially self-finance and partly by selling of the old die making machine. The existing factory (old) which cost 3 million 10 years ago has zero book value and can be currently sold for 3.5 million before taxes. Now new machine, expected sales revenue in each of future years are estimates to increase by 3.6 million, but production expenditures except depreciation will be 50% of the sales revenue. The new printing (die making machine) factory will not affect the firms net working requirements. The depreciation method for the new printing factory will be a straight line method for 5 year useful life of die making machine. The rate of tax on firm will be 30%. The residual value of existing and new printing factory at the end of five useful years will be 0. Martin and Collin printers cost of capital will be 11%.

TASK 1
a). Identify the need for financial resources within a strategic plan in context of printing press project

b).

Appraise methods by which financial resources are allocated, managed and controlled

c).

Evaluate the impact of financial resource decision making on business strategy when there is a decision required whether to go ahead for new machinery or old machinery.

TASK 2
a). b). Identify the data to be used when making decisions about the use of financial resources in context of Martin and Collin printers. Explain NPV, IRR and payback period time and also analyze alternative investments using appraisal methods, like NPV, IRR and Payback period time.

TASK 3
a). Justify with the use of financial resources calculations and also give recommendations about to accept or reject the new machinery.

Management of Financial Resource and Performance PGD Level, 7. May 2011.Student Assignment Brief
Learning Outcome Understanding the impact of financial resourcing on an organizations performance Content for learning Outcome Assessment Criteria

Financial resources: need for resources 1.1 Identify the need for within a strategic plan, budgeting, financial resources measurement, control systems, develop within a strategic plan strategies for identified resource groups (e.g 1.2 Appraise methods by finance, human resources, physical which financial resources), sources of finance available to resources are allocated, managed and controlled organizations, cost of finance. 1.3 Evaluate the impact of Financial Management: treasury financial resource management, (cash management, risk decision making on management, hedging, accounts receivable business strategy management, accounts payable management, banks, investors), financing and control of working capital, tension between financial and strategic objectives

Understand how to use appraisal methods to manage financial resources

Investments: capital, revenue, risk factors, sensitivity. Appraisal techniques: evaluation of projects, payback period, internal rate of return, net present value, inflationary effects, discount rates, taxation effects, cost benefit analysis

2.1 Evaluate how alternative strategic investment opportunities are assessed. 2.2 Identify the data to be used when making decisions about the use of financial resources 2.3 Analyze alternative investments using appraisal methods 2.4 Justify recommendations about the use of financial resources

Important Notes for assignments

Students are advised to submit the hard and soft copy both. Assignment should be between 2200 - 2500 words by using standard formats for the work and Use appropriate software, with (font size -11) and font face Times New Roman. Signing the project declaration form is mandatory, without your signature the assignment will not be assessed. Start your new question or content from next page. Requirements of the colleges assessment policy. Your Focus in assignment should be on appraisal and analysis rather than simple description, If approaches and models are used in assignment the application is more necessary than its description Structure of assignment should be balanced and all area should be given equal attention Write the assignment in your own words, copy paste assignment will be declared failed. You have pass through your assignments from plagiarism turnitin software. If you give the web reference mention the date and time of access.

Each Assignment should have contain

Title page with LWC and ABP logo Table of contents. Numbered pages and diagrams A summary of the report including reasoned conclusions and recommendations. Bibliography/ Referencing should be the Harvard style and should be mentioned within the report to check the authenticity of statement provided, In case of book reference write the ISBN number along with other information Appendices - if appropriate.

Main Points Plan: this is perhaps the most important part of the process. You may find it useful to begin
by brainstorming ideas and sources of information essential for successful completion of the assignment with other students. It is always useful to receive feedback on the initial plan from your tutor.

Read: you are expected to show evidence of reading relevant texts and journals to support
your arguments and demonstrate an awareness of appropriate sources of information.

Experience: the significant practical element of your assignment should be informed by

drawing on your own experience, expertise and opinions.

Debate: it is vital that your assignment is not merely descriptive. You will need to: debate
any theory you introduce, reflect on your methods of gathering and analyzing evidence to draw out findings, and discuss any impact on your practice.

Style: your writing style should be clear, accurate and succinct. The style of writing should
flow and paragraphs should be linked. You may choose to use appendices if inclusion of data in the main text would disturb the flow of the report. The presentation of the assignment should be of a high standard with accurate spelling, punctuation and grammar. The use of relevant tables, diagrams and charts is encouraged, and these should be correctly labeled and numbered.

References and bibliography: any references to books, journals, articles or web

research should be referenced accurately and included in a bibliography using the Harvard system.

Review criteria: you will find it very useful to re-check your assignment against the
criteria to ensure that you have included everything that will be assessed. Maximum Words: 2500