Managing Financial Resources and Performance

Managing Financial Resources and Performance

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TABLE OF CONTENT

Page No

Introduction………………………………………………………………………… 03

Requirement 1:

1.1 Identify the need for financial resources within Asda's strategic plan…………… 04

1.2 Assess the Appraise Methods……………………………………………………… 04

1.3 Evaluate the Impact of Financial Resource Decision Making……………………… 05

Requirement 2:

2.1 Net Present Value…………………………………………………………………… 05

2.2 Internal Rate of Return……………………………………………………………… 05

2.3 Difference between Risk and Uncertainty ................................................................ 05-06

2.3.1 How sensitivity analysis and probability analysis can be used to

Incorporate risk into investment appraisal process........................................ 07

Requirement 3:

3.1 Selection of data to use in analysing business performance........................................... 08

3.2 Evaluate performance data to support strategic decision making………………….. 08-09

3.3 Analyses business information to make substantiated recommendations

About improving business performance……………………………………….……..…10-11

Requirement 4:

4.1 Net Present Value of a new project to manufacture and sell a brand new gadget………….11

4.2 Viability of the Project…………………………………………………………….........11-13

4.3 Calculate unit costs of making a gadget.........................................................................…...11

English: Internal rate of return Svenska: InternrÃ...

English: Internal rate of return, two solutions, c...

asda tripod

4.4 Cash Budget…………………………………………………………………………………11

Conclusion………………………………………………………………………………………13

References………………………………………………………………………………..….14-15

Introduction

This assignment is to understand the impact of the financial resources of an organization and evaluate different performance measurement methods with in an organization. The different appraisal method such as Net Present Value and Internal Rate of Return.Net Present value is the most popular appraisal method which gives true answer than the other methods. If in a Net Present Value Calculation value becomes as a positive that means the project should be acceptable. If the Net Present Value becomes as negative that means the project should be rejected (Richard, 2011).

Internal Rate of Return is another important appraisal method which calculates by taking two discounting rates. This is also developed under very logical manner where highest internal rate of return would be acceptable. But in a case of mutually exclusive project, Internal Rate of Return concept would not be...