Reference no: EM131243399

DB Responds

Patricia Brown:

After reviewing the assignments for this course, description, type and deliverables, my approach to the research for these assignments will probably be the same with a few exceptions. This weekend is my family's homecoming, in Wilmington, N.C. I also have family in Lumberton, N.C., and usually stop thru there in route from Atlanta, Ga. Needless to say, with the latest weather, there is a lot to consider and getting my homework in on time is one. So here goes.

Discussion Board Unit 2 For the DB this week, I researched the assignments, to see what was required for each one.

Individual Project Unit 2 Understanding Risk Tolerance Levels- as always I check the learning materials, MUSE, and the chat. I then check the reading materials. I will use the school library, (ABI Inform Collection (ProQuest), that covers risk management.

Discussion Board Unit 3 Alternatives for managing risk- for this DB, I check the learning materials, MUSE, and the chat. I will use the library and the web to research business articles on an important challenge facing the financial management of organizations today.

Individual Project Unit 3- Alternatives for managing risk- I will definitely be on the chat for this one, and MUSE. I will use the me library database to research diversification and reallocation of funds.

Discussion Board Unit 4 - Theories of Interest Rate Determination- I will use my previous research methods, and the outline I will use: Outline for Week 5

Interest Rate Risk

Foreign Exchange Risk

Credit Commodity

Operational Risks

How do organizations measure risk?

What global initiatives exist in financial risk management?

Individual Project Unit 4- Theories of Interest Rate Determination- Same research methods. probably try Accounting and Tax Database (ProQuest), along with the other ABI Inform.

Discussion Board Unit 5- Foreign Exchange Risk- I will definitely us the feedback, and the outlines of my classmates to help me do better research, hence learn more, and turn in better work.

Individual Project Unit 5- Foreign Exchange Risk - by week 5, I have pretty much got this paper done. I have identified my resources for research, and I have a rough outline. Thanks Professor!

Micki Lawson:

Within each description of the individual projects, many expectations are required. Each project lists the length of delivery, objectives, and a description of the project. In order to meet the requirements of each project, the student must answer each question in enough detail to sufficiently answer each question. Each answer must be presented in a clear and easy to understand format. When the student is conduction research for a project the information needs to be obtained from a valid source. Sources that are not valid are websites that contain public opinion, such as yahoo answers. Valid resources would be the library, M.U.S.E, and appropriate websites. It is important for students to learn how to write a clear well formatted professional essay. These skills are not just used to write a paper for college, but they will help assist students in their future careers. By doing each project the student will be able to research and preform critical thinking skills on how real life management would face and handle different situations. Each assignment will introduce students to different types of risks and the levels at which risk should or should not be accepted.

In a management position the manager would want to conduct quality research on a potential risk that the company was considering. The manager would want to be able to recognize the risk involved with projects and be sure to analyze them correctly. Covering important details and charting potential risks for the company is necessary to be able to make good decisions. Being able to present a well-organized and professional presentation of a projected project to the manager's team is crucial to the company. The management team and people such as the CFO need to be given accurate information for a good decision to be made. These are examples of how the skills obtained in this class, writing professional papers, and conducting qualitative research will help in the field of management.

Theresa Rardin:

Discussion Board

Theresa Rardin

Risk Management (FINA412 -1604B -01)

The first thing will be to review each assignment, the required chapters (each week), M.U.S.E., live chat (times), discussion boards, and individual project, reviewing due dates, deliverable's and placing everything into a weekly planner can allow for the proper use of time management. The use of AIU's library or trusted websites can be useful in researching for a quality deliverable paper, also creating an extensive outline can help with creating a successful research paper.

Time management is very important when conducting research for the appropriate deliverable paper. Each unit, one through five can help in preparing and evolving time management skills, allowing for properly and thoroughly research information that can help prepare for a career in management. Time management is important for any career; it can also help provide a productive work environment. As I learn to successfully research each discussion board or individual project, this can provide a more accurate decision-making as a manager, along with being very successful on the use of my time management.

IP:

3-4 pages (body of paper)

Assignment Description

BUYU Manufacturing has been contracted to provide SAEL Electronics with printed circuit and motherboards (PC) boards under the following terms:

• 100,000 PC boards will be delivered to SAEL in one month.
• In 3 months, SAEL has an option to take the delivery of an additional 100,000 boards by giving BUYU a 30-day notice.
• SAEL will pay $5 for each board it takes.

BUYU manufactures the PC boards through a process called batching, and manufacturing costs are as follows:

• The manufacturing batch run has a fixed setup cost of $250,000, regardless of the run size.
• The marginal manufacturing cost is $2.00 per board, regardless of the size of the batch run.

BUYU must decide whether it should manufacture all 200,000 PC boards now, or if it should manufacture 100,000 now and the other 100,000 boards only if SAEL decides to buy them. If BUYU manufactures 200,000 now and SAEL does not exercise its option, then BUYU will lose the manufacturing cost of the extra 100,000 boards. BUYU believes that there is a 50% chance that SAEL will exercise its option to buy the additional 100,000 PC boards.

1. Discuss the potential profit of manufacturing all 200,000 boards now.

2. Draw a decision tree for the decision that BUYU faces.

3. If BUYU uses its expected profit as the basis for its decision, determine the preferred course of action.

4. Determine the range of values of the probability that SAEL will exercise its option, making the decision found in part c as optimal, and determine the expected value of perfect information about whether SAEL will exercise its option.

5. Assume now that BUYU is constantly risk averse with a risk tolerance of $100,000, and answer parts 3 and 4 again.