Financial Management

Running head: FINANCIAL MANAGEMENT
Financial management
Name of the student
Name of the university
Student ID
Author note

1FINANCIAL MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Findings......................................................................................................................................2
Findings from the Q-Powerboat project.................................................................................2
Quantitative aspect.................................................................................................................3
Qualitative aspect...................................................................................................................5
Finding and comparison with S-Powerboat project...............................................................5
Cross over rate........................................................................................................................6
Conclusion and recommendation...............................................................................................7
Reference....................................................................................................................................8
Appendix....................................................................................................................................9

2FINANCIAL MANAGEMENT
Introduction
Pentag company is engaged in producing the small power boats and is currently
facing the challenges regarding building and marketing the environment friendly green
powerboat. The objective of the report is to analyse the new project Q-Powerboat that is
expected to leave carbon footprint in water. Apart from that the report will also focus on
another project S-Powerboat that is identified by the entity to be more environment-friendly
(DeFusco et al. 2015).
Findings
Findings from the Q-Powerboat project
Analysis of Q-
Powerboat
Year 0 1 2 3 4 5 6
Cost of
equipment
$ -
200,00,00
0.00
Installation
cost of
equipment
$ -
8,00,000.
00
Sales in units 650.00 600.00 550.00 500.00 450.00 400.00
selling price
per unit
$
30,000.0
0
$
30,000.00
$
30,000.0
0
$
30,000.0
0
$
30,000.0
0
$
30,000.00
Sales revenue
$
195,00,0
00.00
$
180,00,000.0
0
$
165,00,0
00.00
$
150,00,0
00.00
$
135,00,0
00.00
$
120,00,000.0
0
Variable cost
$ -
78,00,00
0.00
$
-
72,00,000.00
$ -
66,00,00
0.00
$ -
60,00,00
0.00
$ -
54,00,00
0.00
$
-
48,00,000.00
Fixed cost
$ -
2,00,000.
00
$
-2,00,000.00
$ -
2,00,000.
00
$ -
2,00,000.
00
$ -
2,00,000.
00
$
-2,00,000.00
Depreciation
$ -
24,96,00
0.00
$
-
24,96,000.00
$ -
24,96,00
0.00
$ -
24,96,00
0.00
$ -
24,96,00
0.00
$
-
24,96,000.00
opportunity
sales revenue
$
5,00,000.
00
$
5,00,000.00
$
5,00,000.
00
$
5,00,000.
00
$
5,00,000.
00
$
5,00,000.00
Cost of
production
$ -
2,00,000.
00
$
-2,00,000.00
$ -
2,00,000.
00
$ -
2,00,000.
00
$ -
2,00,000.
00
$
-2,00,000.00