Personal Statement : Noble Mineral Resources

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Noble mineral resources
INTRODUCTION
My last name start with ‘N’ as my company name I chosen will be Noble Mineral Resources Limited. Noble Mining is company focusing on the resources, which is searching for and growing high level of gold deposit in the world as its rank mid-row gold producer in West Africa .
Main responsibility of CFO in Noble Mining Resources
The highest position level of fiscal leadership in a company is the Chief Financial Officer, as a member of the organization’s executive leadership and management team, occupies a very crucial and viable position in today’s global business society. The three general areas of responsibility for a chief financial officer (CFO) are as below:
- Investment decisions
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Company’s Dividend payout ratio matters a lot here. A high payout ratio leaves little fund with CFO inducing large borrowings while a small payout ratio may hurt stock price. So CFO needs to find an ideal balance by taking some tough calls. Third vital decision for a CFO is to Manage Firm’s assets. A firm has both Current & Fixed assets. While fixed assets are managed by the Operating managers, CFO’s main focus in on managing current assets. CFO manages current assets like Cash, Mkt securities, Inventory based on business scenarios & goal of the firm.
Above three responsibilities of CFO can affect the Company’s share price and market valuation of the firm. Success of a CFO is judged by the firm’s investing, financing & asset management decisions which create wealth for its owners.
Question 2
Research cost of $300,000 is sunk cost & is not relevant for Cash flow analysis.
Advtg Campaign to Boost sales is assumed to run uniformly over 5 yrs. So Advtg cost of $1300,000 is spread equally over 5 yrs.
Annual Dep using SLN method = (Initial Investment – Salvage)/Life
= (5500,000-500,000) / 5 = $1000,000
Net working capital of $200,000 at Y0 is recovered at end of Y5.
Salvage value of $500,000 is recovered at end of Y5 and is added to CF of Y5.

WACC 10%
Year 0 1 2 3 4 5
New Machine $ (5,500,000)
Salvage Value $ 500,000
Net Wrkg Cap $ (200,000)
Sales Rev $ 1,500,000 $ 2,500,000 $ 3,500,000 $
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