The Financial Planning and Decisions for the Business of Taktical.Com

Topics: Net present value, Discounted cash flow, Internal rate of return Pages: 11 (2919 words) Published: November 8, 2009
The financial planning and decisions for the business of


Part 1
Explain the purpose of the financial planning for Taktical’s project Page 2 Describe the information needs of the investment makers
Page 4 Part 2
Assess the viability of the project using investment appraisal techniques Page 5 Part 3
Calculate unit costs of the product
Page 8 Produce a flexible budget of three years which will achieve each year’s profit Page 9 Make appropriate pricing decision

Page10 Use the breakeven analysis counting the minimum numbers of units Page11 Conclusion


Frank Drake, who is a keen racing sailor, is planning to set up a company to market the software form of CD to help racing sailors scheme their tactics for race. Before the decisions are made, it is necessary to assess and evaluate whether the hi-tech project feasible. This paper summarizes everything I have learned from the financial decision making course and practices how to combine it all into a financial business plan that can be presented to Frank Drake’s project. The paper gives assessment criteria for budgeting and pricing decision a hi-tech project at the planning stage, including investment appraisal techniques, flexible budget, and breakeven analysis and financial pricing strategy. Also find out about choosing the information needs of the investment makers and were to go to explain the purpose of the financial planning for Taktical’s project. Part 1

Explain the purpose of the financial planning for Taktical’s project Explain the importance of the financial planning for Taktical's project Financial plan also act as a budget in business.A project budget provides a basis for financial approval. Once approved it provides baseline of reference for managing the cost aspect of the project. Budgets should encourage thinking ahead and help managers to understand whether their product to create a profitable . i. To ensure the achievement of the organisation's objectives One of the most important skills of any entrepreneur is the ability to prepare budgets and accurate financial forecasts for the business. Your ability to set financial goals for sales, expenses and profits is a true measure of your ability to succeed in business. ii. To compel planning and decision making

The act of budgeting for the business forces Frank Drake to think through all the important numbers and to develop a picture of what your business is going to look like in the future years. A budget is a powerful business tool that will help him make better decisions and set out detailed plans for achieving the targets for each participator. It enables manager to develop a thorough understanding of the internal financial workings of his business. iii. To communicate ideas and plans

You can according to the budget to order sub-ordinateds, or they are dialogue and exchange of ideas. iv. To co-ordinate activities
All activities should base its budget on the firm needs to ensure maximum integration of effort towards common goals. v. To provide a framework for responsibility
The budget should reflect the planning of the whole organise and the control systems require that managers of cost and profit centres are made responsible for the achievement of budget targets. vi. To build a system of monitoring and control

Creates a baseline against which actual results can be compared. vii. To motivate employees to improve their performance
This concept of motive that lets the emplyees know how well or badly they...
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