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    12 views26 pages

    DocScanner 07-Apr-2024 1-12 PM

    Uploaded by

    ashish2965610

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    zt E-UNeT_f : Sk Financia Manayemerch Be © Refer to thy ehti ch mde ond effective Mawaqerneud od maney Crund) tn sud a mmanney oy to accomabie h dhs objective of th Sdgani zation T+ i, maindy concerned wrk the pepe Managemen of funds,» = Brondd defined oy athe actividy concerned uidh Penning enaising corrtarali ns and adminis Storing of funda, used in business According do Guthman and Dovaad. Financial Management — deallg with prrocuncmend of funds and Abele efecttue Utiliaation in, dine buciness — S.e- KueKhad. Xe Financia Manoa — eReler to enyone. uo tg syesponsi le for & Sariktcant- — fnveetment an Rirancning ein a Seop of financial Manage me wt 2 Fitonciad Plonning and — Ponk adr e Analysts and Regeonck of Binemelah state ment 2 Cabetad — shawedurn mMonasgrnent 2 Raising cubital t Long erm Shoat her < Trvesring Calitall © Yana \n9) and mordhossing Dinance. and uick, + Weolking Capital Management. * Dividend Monagemend , Me Signi flcarce / Tmbosrlance of, BnrancioQ Managemend- a * TS Promote. Saleg # TE meek Cont} Agencies © Te avail business opportunities = ObKmum aMocatton and Us zation of MERON CER & Basic of Panning , Soandination and Contact *& aby ecktvne Le Biot Mastmizadton obprvach, | o => Profit Mopimisaton marion ny rin upp Troome. of fim, ; : SD Trcthe economic theory, the Behaviouy at fi nore analysed Wn term “od pref — moximizadton A > whale maeVntstg, proper» @ ftom either Prociuceg moasirwm audput for 9 qiven armour of (input OA USE minimum apUd fem Preduciay a given owput => Logic of porefid- magintsadion i, efficiency . => Profi& maximization approach says that ove ackivi'ty facton events) -lyansactions should be ainection +e board maypimgtation of profit of business . => So only those detongacdion | events / aediary / activities” should be daken indo aneenteaton which Increases fhe poredit ef business trderpouke *# Advantage And disadvan dege of LM & - Pach Os dest of economic efficiency ° gd tg easy to understand ° r+ ig ver ) Simpse do cakculate.. 2D Disadvandage — + TH Ip vague . ; no did- mroximication ab poreach | tk Confusing then Sy net clean on which pret tk bo be Manimize hen wu many vadanee of prehie Wit hamar Gwsiess good and neh poodle before torn pratt and after Wye pregit Amount and sate grotit. : 4 Accounting and economic parogit « oat iqrosts He valug eq4_money + Tt ignora Risk | 7 1 1 ' » ' ’ , ' ' rn Ab Wealth Mayimizatien appear, a As per wealth — Moyimizatian apfoarf only these acdividies | acten / orangac'oy [event should be dake, indo Consiorodtac, whike Incuases dhe weblth do thy Staeke holdeng there for~ al) ¢hoge doranpochiang whith mnerult indo declined ef weal, — sheula net be Consiolertal in business interpol Be. D> wealth mavim'cation abpoach 1, algo eng QZ vrelue manlnu'zationy 2 => Wealth ov value 7 wealth or value ia a quatitatve berm and ue do baeyht sence valut -cloeg not mean porot' (be only but fA trcluole value Can ned be sect poecisedy but we Cam quatdy i" by wing the formula - Ch LL Fa" _ Per | velit = aes +a ~ Faves} ment | cost : a Ga outAlow ‘ 1 ‘ ‘ ‘ « ‘ ‘ ‘ 4 ~= +-—-—— Grant ‘ 4 ‘ ‘ -~--7r eyes wevevwvwvweweseye when, — CF cr, Sha) a gea= -— —CF ou Annual cast tnt Sows . Ke in discounting Factan [cost off Capri all [fat af Undene. N- jx the novel years. a= = 2es ) eVIFE Cash Phous DCE bee sent valux ae brchoenst- factor woonod . a u0000 goeo° ‘ a Boosoe , \ Ueooo ‘ velus = SOCE] = gFiso8o — [roe ? ; = Mode xf dHrent vallut ts positive HY dau TF caw acespt wealth pray imzahtor « 4 Calculoen PYTe = t of lof. = lee i cAhen = \ele rash yeah = L1G Ae q we > 30g Same — Nerf yey = 5 ak Scope od dinanciad manag emer’ 3: i- DNelerminad ion of fore wugutre mond ii- Cafordal Shouedet jii- arpid af budlgting fv- Frnane'n decivion Vi ~ Deviclerd decision vi- werk Gapital Mauayement— Vii Assessment of Resid i watt= othe finance related qo Hed ae Parctions of finance | Fiirence Managers {— fond’ Kequice mat Determination . Vs Asset mire Clare pled mnce Puts) @® Tevestront Decision @® financing pecision ® Dpuidand DeIHOr © Preparation of budget ®© Ascessmant of Risk, ae. @ viointainity M iguilily amd Pnofitalailidy Sp Financial thening financial Sameng ik an angrng toes tohellp gee make sensiily olecizten about money hat Gn help gon achieve you gee th dife Pp Steps | firauelal flannel © Evlabbish youn go ® rather data @ Evalucte your cument position ® pevelop a pew © Inplemmnt gov pla ® — monifar and sreubaly soviews a Law yout finances for the future you Wate — what axe you gos din Life tn hore, medion and dong term 2 otis Gan yee |e How 1 what ts fh ilkely cot of there goats anol when yew need the money ¢ let's do gome finavcial planiris as ee Le what i Important fo you flranciably Sho: , Loager cream. 4, Do you Krow how muct, “yeu spend every month? Seeeceeceeeéeeee oe Ee 2K Time Valug of _meney 3 Basic foreblom do delexrirt value todo} of. cash Pees thot gn dia pater? How asc eopected an g FF ene volut of mow} xr fOS go the fact fet a dalle, in Aauol pats iB ares oat dala promised gem gt => which would go vecather “have — teve decay og [ovo in S years ' dod oy aug do use dhe junds pr lave pero » This asncept ls vrefeowad Fo 8 dhe TIME VALUE OF money ! 7 => Money wneceived B00RO7 gather ctmumb On “ne => Tims allows one the opposclunity -fo postpone Consumph and com Lntenest LInsesnest CD Future value and Cornpounching amount af mane Oe + Futur value seafers do dhe srvestamnt will qos fo Over Raw Seng ht- of dime af some given ante nate + ’ se tebe Hs pubou value of 4 Finglh Cosh plows . pengewt valug of the cash plow cev) + Tatenest gate CY , 6 Thea period Formule — FV_ = PVe xCley)™ Ey. rf you. Invested! Qove cteolasy fA an accovsd— that feud 67 intesces#- , with Interest @rpotinded anny , Bow much ull Be tn the account af yy end “ef fwo years iD then, ast noe vecthdsarus salurhorn Ay = ev Ger” z FY = 2000 (I+ 4) = Qooo (1+ 0106)” = deoo (\06)" fensewet™ Vili, onal discounting +—— © The curt velue of futwu Cash flows distouct4 ar fhe abpoopotate, digeourding wate over Romy i Leng ht of dione peursd © Discounting ds thy proces af toeantlabing a putuy valu an a Reb of fudwu cash plug sido @ potmend value. 2 Fe compute poresene valu of & Birnge cnsty flow we nied: : + Fubwu valut ef- dhs cash plow CFV) Trtenest sate Cy ; * Time porod Ln) ") Hl ‘ f ‘ ‘ formula —— Vv. ev PV0 = en Evempl Agsuew chat got need to have exacd. i Prom now. How muck, paved 40 yours & rat thot PHS 4-sve . \ Ale you depesite todeny 10 on ue 7 iioceat? | Compaoncled aaa Ro we seach pour 7 of Fs saluhiorn , pve = ten” = 40g rog)'° (Vo = 4 ore - QL338 i @ Ke Frequsncy f- Gempoweding AS forrutr_, mom rn = PU (l+ Ove] whee = n- Number eg years ‘ [jms Con ound Pertool pur ye * HA — Annual Interest fate. E Vem — FV ak the om of Yee n “ mY = fv at the aagty jie today . Ey , Supper you |ovo mm an accourd ‘thet prs I27- Compaurclad quastels account after eat Pow muct wit Be im dre yeu if dhere axes no withdsraunls F pyr = [eee wl 12 Ay = 3y pe quexterm n= 8% Yo 32 quater Lev = fv Oey" = Jooo (reg = SSS Fe Rrenent vals © Future vate © pengent value factor®, axe socipnocaly of. fubow Valu facdorr, eutes anol futuu valu ase positively ; dlepovit Indene& , N o Erdenest ulated Tnteuge nates and persend valet are negabi related Sgetively o Siew porte wntatedl Thm povied ound poosent volur au ragaicely elated a ancl fut valet ant poritively « Doterminin dha interest orate ! Essentiall we a deuyin do defernun dhe tnderesd gate yee pound cota tevy | future volun (FV) avd doy period Cap iy Tims powtad = (-— dhe dierg ported! Cn) fer whyet, o cwuernst— favested +o a cevdeaulin att, of rndeneat (R) » > . dD » Bg dDedernunin 4 Beterminin > amount PV) necels to be » — fixtun volun CF) giren » x Fabwu value of mulher Uneven Cash ples — , Gornpute fhe peter velur of cath ingle cash + ' flew using fubure value fermuba anal add thera! UP ever att dhe cash plows » ’ , ’ , ’ op Persent value of multe Uneven cagh flu 2 fenset valet od mutlih Qepute the persent volut of each, Gingl Cosh Ww Lyn preset valu formula and adof thon over all dle Cash, fpleus- 2 Annuities Xe A Series of Devel feven{ equal” Hired cash plous odfbotk- cceun at thr end Af each, dou pedal for 4 fui How ported ' Pp Evannphs Annuticg —— \ * Cant Looms, + House mast gages + Ingunance Pobuciex + Forme LHe ries * effyemont- R nis UNET-E ae Tovestmect_ Declan DTnvestment deci we very tnapowrtcrnt form oat enterprise 08 they dleferruiar the futur, Og emterepruge wsually investment dlecisvons aw sefere do a Seog Henm investment decision - op “Tybes of. investment i wer tes dypes of awedtmend- on hy baste og Not ug of ob amd dies pened ts Long dorm Investment ® a. Shert term Invest mend * ge Types ef Inveotment Propet 5 a D Mutual exclugive ee ae : crud bley Onclunve poteye eR {ix the Thoze prreect vobted serve and Compte wlth each ether only ony ect wilt be accepteol and steyf— will be discorded + SS Ero ples IneQuds = Afra brwrol of TT 5 Biffount bonds ed Cr , Rare purposes @ Mukwat incluave anopect=3 + rately 1 \atlstve — propects of there Bmepeck FUER Pomme défixent — patopect PUrgeses Grd clmat- Compele. wuld, each ednor, af then in ne acancity o4 Hirred fund more than ort perce Con ‘ee. accepteol. ®@® G@nh mea eropect 3 +— Can igen propect- a4, dependent peg cod Crepes ad | , , ; , | EB . piftfount bands od TY , , , , , axe alae Known ths enitence of- Cantigant dependent on exitence of Bem other tnasporr preg ech 4 , 1 © Canteen 7 Liohsany > tosbidal 7 Mankteh ete 4K tmbontance og lnvestmaxt deciaon 36 + They Invedve — Comitmenct- of use amen : of Rnd . . ‘thay delerming the future Ond goousth of ¢ business ewt-repuu'ze, : they ae aber trrevernbaly deaston ox vuvergibt: at — subsentiaf cost ov Sods > Tin Light of dt above point investerant a decielean thoy do he deken very ems becour, totire pusura and sucess of erdre- peize és Joygally dependent en nvegt ment deeisiar . FE Capital Budgeting Cafertal budgehing 5 sulodtedl adh Jom cterm Invest mend decivtan, ita SS dhe process oF idendifieadion — Pseleminasrs sasuending Svalush' /Ppsiachal samking selecding Anal émplinent investerend=y capital Budgeting - Prepect are Knsun a4, 7 He Process of cobital Budgeting | steps 3K, . rdentitication 2 putfesmary — Butininany Scseentny . Coser . Evahuating { Aprocksf ‘ Pomieing ° Sdecting . ienplmerd-ing HeTectniqus ef _Calertal buogerng fe t. Taclidrenel Techiniquek OR Gratuation of investment _prapect 7 —— - Accounting Rate of Aetunn prsthod (ARR) — Accounting wade. of Retire medtod of Js algo mewn aS — avasig< ade of oretusin mathod this mathed s4 Sout on avarging of profits ove peod of Bima . The formula for dlus method uf | ARR = TCCCCCCCECEE Avg: Anquad Rrofi} _ J 0 Lavestment . it conrad devuty given effebie { ef dieu (20) no: ef years Cn) Ary: Pinna foof't = Poof & Advowtage of ARR) Method .— ARR wy vow eary 4o calewate . . T+ wy v simple +o umMenstard, o Tt Aased on pooh aut Gs teat of 2conomt, efficiency ye Disadvomtores RAMedhod 2— » ee TH _ignenesg dew valu af money (e Te lynoreg gc and uaterbatindy Step —} Jo O00 +JovHe+Gewoss sGeoeo% S0Oe , SS SS = Poooo Shep -2, Se fay back Ne _Eavead met Pirnucty jomnod =e hep rcordllna, yo Bwnutdy Helos. Tr 3 yeah foo at 3-332 ob Ctendahioge of ZAR in Cove at — Daw Z— of wa$ur Uneven ash _; Ghep at pind out Avesiage Annu Cntr plow Ge a2 Catculete fay beck value Cane Stal esting = poew vs Annutey Cost. Step-3 See the Annuity deh De aud doy to Yooate value Closet to fury ab for du Sife og dhe pougeed- C42 year) the Cosocespo wdiing Rate would be song esd "rahe od ERR . ee aan rere hep Ye r Su breed vey we. by Adqust the IRR Catered By Sep3 adding femt pen tentag| Bf cask flow dn Gritial ~yean one high, or Sabduneting Boney 7s ew Wr inp dal Hore. Step fai — Calle lotr, phe TRA Cabauladed un percomtaye id Cath, yond ae righ NPV iy wring. Aes SPY, Step-6 fepeat the ref proces under MV Co mes do Zero Example — Calloudote ERR Traresbment —— Je eeere Cas cos 7 300000 " Zoao0e00 BE Q00d yeane] @D 290000 C AGEOOS Qeoeto whet wore ‘Le = Lower hake = * Interpolation _§ » of neval Le see = eLE +a, 4 vv at Lp — NPVed He ERA * asst epomee bolurrers dwe nate, He a Higher Ratt wae for Mar caheutode Ex, Engeeni os fr The cost of a new be dolfer Adecco Note, They goremula, Actual tek hegh electsrom'c’ estimde vafev bash mactane to Hu machine JE eerectco! do tad in followings Mlobuste ctrnd Madesur ot aut ' . —— yeor [42 8 if e| 3 | re Cash sek | BOK OK hy Sonings Yold i iF Got Hoe Go | Yale | Yold rmaR = Accepd- 8 hepect af TKR E— @ Accept dhe poreyect ip cee > Requires Rede of Resume @ Regect he propect Tf TRAE hequivee fate 64 feturn , oF Patefitalriity Trdes medhed Pace fii baba li by inde Bh dhe kedodive moq ene of vm pussent valuy at abso Knows oh PT Mrathed ~~ =F FFPCSTCECCCRCI ESTEE SE C “pl = imeticent™ CFn eb) Trv

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