Financial Decision Making for Managers: Assignment Specifications

1273 WordsDec 7, 20136 Pages
Unit 6.8 Financial Decision Making for Managers London Churchill College Programme: Unit Number and Title: Unit Level: Module Tutor: Email: Date Set: ATHE- Level 6- Diploma in Management 6.8 Financial Decision Making for Managers 6 Chisomje Ezeaku c.ezeaku@londonchurchillcollege.co.uk 23/09/2013 Learner’s name and statement of authenticity Learner’s Name: …………….. Learner’s ID: Date handed-in: I certify that the work submitted for this assignment is my own. Where the work of others has been used to support my work then credit has been acknowledged. Signature: ……………………. Date: …………… Key dates Distribution date: Submission date: Return date: 23/09/2013 (TBC) 15th week of the term 4 weeks from…show more content…
At the end of November, the business has agreed to pay £135 000 back to the bank to reduce a bank loan. This was before they realised they would need a new delivery van and was based on higher sales predictions for the last three months, which have had to be revised due to national recession. 3 Unit 6.8 Financial Decision Making for Managers London Churchill College Task 3 a) Assess the given projects using accounting rate of return, payback period, Net present values and internal rate of return. (3.2) b) Make recommendations based on calculations and explain reasons for recommended choice. (3.3) Hanley Manufacturing Limited has two potential projects. They can only invest in one project. The following information is available on the projects. Cost (immediate outlay) Expected annual operating profit (loss): Year 1 Year 2 Year 3 Estimated residual value of machinery Project 1 £’000 200 Project 2 £’000 100 58 (2) 4 7 36 (4) 8 12 The business has an estimated cost of capital of 10% and uses the straight line method of depreciation for non-current assets. The business has sufficient funding to meet capital expenditure requirements for either project. Achievement of a pass grade A pass grade is achieved by meeting all the requirements defined in the assessment criteria for each individual unit. Plagiarism and Collusion Any act of plagiarism and collusion will be seriously dealt with
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