How could a financial information system be beneficial

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Reference no: EM131967082

QUESTION 1

Assume that your organisation is looking for a specialist to assist with decisions regarding future investment strategies. Critically discuss whether you would appoint an accountant or a financial manager. In your discussion, be sure to highlight the difference between an accountant and a financial manager, and the roles and responsibilities of both individuals.

QUESTION 2

How could a financial information system be beneficial to a business with respect to strategic financial management?

QUESTION 3

You have been instructed to assist your direct manager, who is extremely risk-averse, to make a decision between two investments, A and B. Both investments require an initial investment of R300 000, and they both have a most likely annual return of 15%.

Your manager has brainstormed three scenarios (pessimistic, most likely and optimistic), and the expected annual returns associated with each possible scenario. The estimated returns associated with the three possible scenarios for assets A and B are detailed in the table below.

 

Asset A

Asset B

Initial investment

R300 000

R300 000

Annual rate of return

 

 

  • Pessimistic

10%

5%

  • Most likely

15%

15%

  • Optimistic

18%

20%

Asset A Asset B
Initial investment R300 000 R300 000
Annual rate of return
- Pessimistic 10% 5%
- Most likely 15% 15%
- Optimistic 18% 20%

Explain to your manager, and demonstrate, how to conduct a scenario analysis. Based on this analysis, discuss which asset is likely to be chosen and why.

QUESTION 4

Obtain the latest financial statements of your organisation (or one you are familiar with) and comment on the firm's liquidity. Be sure to justify your arguments with sound analysis and interpretation of the financial statements. Show all calculations.

QUESTION 5

Research and explain the influence of credit management and debt collection on a firm's financial liquidity. Before attempting this question, revisit the technical requirement and assignment instructions. In this instance, remember that full referencing of all sources, including page numbers in in-text referencing, is essential.

QUESTION 6

An initial investment on machinery of R10 000 is expected to generate cash inflows of R3 000, R4 000, R5 000 and R6 000 at the end of the first, second, third and fourth year respectively. Assist your manager. Calculate and interpret the NPV of the investment if the discount rate is 15%. In addition, calculate and interpret the payback period of the investment.

Verified Expert

This paper reflects some deep-delved knowledge regarding the topic of strategic financial management. Through the progress of this paper, some important questions regarding the topic have been answered in detail. Through the progress of this paper, the key differences between a financial manager and an accountant have been shown. The importance of financial management information systems with regards to strategic financial management has also been analysed. Various scenarios demonstrating different aspects of strategic financial management has been discussed.

Reference no: EM131967082

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Please can you confirm if you can assist with this assignment , attached is the assignment questions , it requires a table of contents ,introduction and conclusion as well Please find guideline You may work on this assignment in a group BUT you must write the assignment individually, and in your own words. If NOT, you will be told you have copied and you will have to do a brand new assignment. The mark will be capped at 60%, and you will have to pay a resubmission fee.

len1967082

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Referencing • Plagiarism is a serious offence. Do not copy directly from any text unless absolutely necessary. Enclose quotes in inverted commas to indicate that they are not your words, and include an in-text reference with each quote. Paraphrase all the reference comments that you use and include appropriate reference and page numbers. • Use the in-text referencing method prescribed by Regenesys under guidelines and policies on the student portal. Consult the referencing mark allocation guide for the minimum number of references needed for this assignment. • Full referencing of all sources, including page numbers in in-text referencing, is essential. For example: (Gitman, 2010:15) in text, and then in your reference list: Gitman, L.J. 2010, Principles of Managerial Finance, Cape Town: Pearson Education.

len1967082

5/2/2018 6:46:29 AM

MARK ALLOCATION GUIDELINES Introduction and conclusion Up to 5% for clear statement of purpose, clear outline of aspects covered in assignment, summarising key issues in the assignment; relevance of summary to assignment Referencing No in-text Minimal Referencing Depending on Perfect in-text referencing or referencing evident but application of referencing, reference list evident inconsistent, referencing reference list, = 0% = 1-4% incomplete, and techniques in variety and fewer than text, in number of required reference list, references = 5% and variety and consulted and number of substantially references exceeding the consulted – minimum substantially number of exceeding the references minimum required = 10% number required = 6%-9%

len1967082

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• Use Arial 11pt, single spacing. • Write your responses in ESSAY AND PARAGRAPH FORMAT. Avoid bullet-type responses. • Appendices may be a maximum of three pages each, with the information in them relevant to the assignment and summarised. Provide relevant links referenced in your appendices so that your assessor can evaluate them. • Respect the introduction, body and conclusion format for answering questions – this counts for marks.

len1967082

5/2/2018 6:46:11 AM

Please refer to the Academic Calendar for the assignment submission dates. TECHNICAL REQUIREMENTS AND ASSIGNMENT INSTRUCTIONS • Ensure that your first name, surname, student number, the course code number and total number of pages appear on the front cover of your assignment. Programme assignment submission guidelines Assignment length – maximum words Assignment length – maximum pages Minimum references required in bibliography Maximum similarity index permitted Masters 5,000 17-20 15 10% Postgraduate diploma 4,000 14-17 10 15% Third year 2500 12-15 7 20% Second year 2500 12-15 5 20% First year and higher certificate 2,000 10-13 3 20%

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