Financial Management and Decision Making
Added on 2020-02-05
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MANAGING FINANCIALRESOURCES AND DECISIONS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1................................................................................................................................................31.2................................................................................................................................................4TASK 2............................................................................................................................................72.1................................................................................................................................................72.2................................................................................................................................................82.3................................................................................................................................................82.4................................................................................................................................................9TASK 3............................................................................................................................................93.1................................................................................................................................................93.2..............................................................................................................................................113.3..............................................................................................................................................11Net Present Value Method.........................................................................................................12Internal Rate of Return Method.................................................................................................12Payback Period Method.............................................................................................................13Average Rate of Return Method................................................................................................13TASK 4..........................................................................................................................................144.1..............................................................................................................................................144.2..............................................................................................................................................144.3..............................................................................................................................................14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONAll the companies of every segment are taking decisions in the business on daily basis aswell as manages the resources effectively. The resources are managing by the management toreduce the risk and increase the profitability of the business. In the present report the RadissonPlc is to be selected. The report describes various internal and external sources of finance whichhelps to the firm in order to raise funds. The report describes about the budgeting such as cashbudget and sales budget as well as about the investment appraisal techniques such as NPV,payback period, IRR and ARR. The report presents about the financial ratios of Radisson andSage group.TASK 11.1Radisson PLC is medium based entity which is currently operating in a technical sectorby manufacturing the computer software which is offered to the variety of customers. Thebusiness operations conducted by the Radisson Plc currently in the London (Chen and Luo,2015). The aim of this business entity is to launch new software Bespoke by taking variety ofsources of finance. The operation's manager are required to emphasis on the existing capabilitiesof an organization by taking new business opportunities by enhancing its actual market share bytaking different sources of finance which are given as below:Internal sources of financeRetained earnings-The radisson plc deals in providing computer software being operating in thetechnological sector (Campbell and Jardine, 2016). The existing business of this entity will allowthem to use retained earning as one of the sources of finance. The amount of profit held with anentity after meeting all the dividends.Personal savings- The savings of an individual will be used in order to fulfill all therequirements of their business in order to acquire this project.External sources of financeLeasing- The computer software can be taken on the lease from external party as themanufacturing of software will be expensive for the business.
Bank loan- The loan can be taken by an entity from the various banks and all other financialinstitutions who lend money by charging specific interest on the amount given to the businessentity.1.2CriteriaInternal Sources of financeExternal source of financeRetainedearnings Personal savingsLeasingBank loanLegalimplicationsIt is legallyrecognizedmode of financeas in thisparticularapproach theexisting capitalof an entity willbe re-invested intheir business inform of capital The savings of anindividual entity willnot get affected dueto any kind of law asit is personalproperty of a personThe legal lawswill affect anenterprise owneras the leasingagreementformed betweenboth thesuppliers and thebuyers will bindeach other in theeyes of law.They areobligatory inorder to complywith all the rulesand theregulationsframed by thelaw in order tocollect intereston the lease,installmentsproperly as theThis approach iscommonly usedmethod offunding therequirements ofthe business asbank will grantloan to an entityby demandingcollateralsecurity.
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