Dimensions International College
AF5001
Financial Management
Financial Management Assignment
September 2024
1
ASSESSMENT DETAILS
Assessment Name: Written Assignment
Programme(s) Higher Diploma in Accounting and Finance
Higher Diploma in Business and Management
Advanced Diploma in Business Management
Class/ Intake: 2023/07 HDAF (26)
2023/09 HDAF (27)
2023/11 HDAF (28)
2024/01 HDAF (29)
2023/07 HDBM (29)
2023/09 HDBM (30)
2023/11 HDBM (31)
2024/01 HDBM (32)
2024/03 ADBM (20)
2024/05 ADBM (21)
2024/07 ADBM (22)
2024/09 ADBM (23)
Assignment Reference:
Lecturer’s Name: Jane Chiang
Assignment Hand Out Date: 2 September 2024
Assignment Due Date: 15 October 2024
MODULE SYNOPSIS AND LEARNING OUTCOMES
Module Synopsis
In the unit, the students will learn about managing finance with the business environment. They will
also learn about the management of sources of funding, working capital investment decisions, risk
and return and business performance using ratios.
Module Learning Outcomes
2
LO1 Explain various concepts, role and functions of financial management
LO2 Demonstrate skills in analysing business performance using financial ratios
LO3 Analyse investment and working capital decisions in a business context
LO4 Evaluate the intermediate and long term financing decisions
3
Question 1:
Investment appraisal is a process of analysing whether an investment project
is worthwhile or not. It includes techniques that assess the profitability of
investing in a long-term project. There are three techniques of investment
appraisal:
a) List out 3 such techniques and provide 3 pros and cons of each. (12)
b) In your opinion, which technique would you best recommend (8)
[Total: 20 marks]
(Learning Outcome Covered – 1 Assessment Criteria 1)
.
Question 2:
a) Happy Company is considering to purchase an equipment to be attached
with the main manufacturing machine. The equipment will cost $6,000 and
will increase annual cash inflow by $2,200. The useful life of the equipment is
6 years. After 6 years it will have no salvage value. The management wants a
20% return on all investments.
Required:
1. Compute net present value (NPV) of this investment project. (12)
2. Should the equipment be purchased according to NPV analysis? (8)
[Total: 20 marks]
b) Soeasy Manufacturing Company is planning to reduce its labor costs by
automating a critical task that is currently performed manually. The
automation requires the installation of a new machine which would cost
$15,000 to purchase and install. This new machine can reduce annual
labor cost by $4,200 and has a useful life of approximately 15 years. The
salvage value of the machine after fifteen years will be zero. The required
rate of return of Smart Manufacturing Company is 25%.
Should Smart Manufacturing Company purchase the new machine if evaluated
using an NPV method? [Total: 10 marks]
(Learning Outcome Covered – 1 Assessment Criteria 2)
4
Question 3:
Calculate the following:
i) Profitability Ratio
ii) Liquidity Ratio
iii) Investment ratios
with the following information: -
Dividend per share = $0.20
Market price per share = $5.00
Annual earning = $100,000
Number of equity shares = 200,000
Stock at start of year: $30,000
Stock at end of year : $20,000
Annual Sales: $50,000
Annual Purchases: $10,000
Total expenses: $5,000
Capital at start: $62,000
Capital at end: $18,000
Trade Debtors: $21,000
Trade Creditors: $15,000
Proposed dividends: $2,500
Bank: $5,000
Closing stock: $9,000
Opening stock: $8,000
a) Based on the ratios calculated above, provide basic analysis of results in term of
i) Profitability (8)
ii) Liquidity (8)
iii) Investment (8)
b) Provide reasons in why the following parties are interested in the financial
performance of the Company: -
i. Shareholders
ii. Banks (6)
[Total: 30 Marks]
5
(Learning Outcome Covered – 2 Assessment Criteria 3)
Question 4:
Companies always seek sources of funding to grow their business. Funding, also
called financing, represents an act of contributing resources to finance a program,
project, or need. Funding can be initiated for either short-term or long-term
purposes.
Provide 3 types of financing and provide pros and cons of each
[Total: 20 Marks]
(Learning Outcome Covered – 4 Assessment Criteria 4)
6
SUBMISSION GUIDELINES
1. All submissions must be in the Turnitin before the due date
2. Late submissions are considered failed
3. You must acknowledge all the sources of information by clearly citing all
materials using Harvard Referencing Style stipulated in Cite Them Right (10th
Edition.) by Pears and Shields.
4. Referencing should be single spaced and hanging indent by 0.5 inches with one
blank line between each reference
5. Word count is allowed to vary +/- 10% excluding the table of contents and
references
6. Report must be typed in black colour on A4 paper size, using a clear 12-point
ARIAL font and 1.15 spacing throughout (NOT single or double spacing).
7. There shall be a margin of 1 inch at all sides
7
ASSESSMENT FEEDBACK: Assignment (WRIT)
Programme
Module Code & Name
Student Name
Student ID
Class/ Intake
No Assessment Criteria Full First Second Feedback
Marks Marker Marker Assessor
Task/ Questions
1 Knowledge and Understanding 20
2 Application 25
3 Analysis and Evaluation 30
4 Structure and Writing 15
5 References 10
Total Marks 100
Overall Comments: (Constructive and useful feedback should allow students to
understand strength of performance, limitations of performance, and any improvements
needed in future assessments. Feedback should be against the learning outcomes and
assessment criteria to help student understand how these inform the process of judging
the overall grade)
Signed Date Final Marks
Lecturer/Assessor
Moderator’s Comments
8
GENERAL RUBRICS FOR MARKING ASSIGNMENTS
Analysis/
Assessment Knowledge and Structure
Application Synthesis/ Referencing
Criteria Understanding and Writing
Evaluation
Break
information
Finding Present the
Present various into parts, Identification
solutions to a work
facts about the present and
problem or appropriately
Description concepts and inferences, acknowledgin
contextual with
interpret the defend g of sources of
issue using acceptable
facts opinions and references
the concepts standards
make valid
judgements
Grade/Mark
20 25 30 15 10
s
Clear Report
Outstanding
evidence of structure with
standard of
an ability to numbered
referencing
apply, extend paragraphs,
within text and
Demonstrates a and figures and
Arguments consistent use
sophisticated transform appendices.
are well of Harvard
(A) knowledge and such Articulate and
developed, referencing
80 - 100% understanding of knowledge fluent
sustained and system.
the subject and academic
substantiated Accuracy of in-
matter understandin writing style.
text references
g. Impressive No
and full details
choice and grammatical
shown in
range of and spelling
Reference list
content errors
Excellent
Strong Report
standard of
evidence of structure with
referencing
an ability to numbered
within text and
Demonstrates a apply and paragraphs,
consistent use
detailed and extend such figures and
Arguments of Harvard
systematic knowledge appendices.
(B) are well- referencing
knowledge and and Fluent
70 - 79% defined and system.
understanding of understandin academic
substantiated Accuracy of in-
the subject g. Content writing style
text references
matter covers all with few
and most
relevant grammatical
details shown
points and and spelling
in the
issues errors
Reference list.
Substantial Report
Very good
evidence of structure with
standard of
Demonstrates a an ability to numbered
Arguments referencing
thorough apply such paragraphs,
are with some in-
(C) knowledge and knowledge figures and
appropriate text and
60 - 69% understanding of and in some appendices.
and consistent use
the subject context to Writing style is
substantiated of Harvard
matter extend it. appropriate
referencing
Content but has some
system
covers have spelling and
9
minor grammatical
omissions errors.
and errors.
Report Satisfactory
Some
structure has standard of
evidence of
Demonstrates a no numbered referencing.
an ability to
sound paragraphs No in-text
apply such Arguments
(D) knowledge and and long referencing
knowledge. are usually
50 - 59% understanding of sentences. but with
Content has substantiated
the subject Has spelling Reference list
minor
matter and and use of the
omissions
grammatical Harvard
and errors.
errors. system.
FAIL
Limited
analysis and
application of Basic report Limited
Demonstrates a such Arguments structure. Not referencing.
basic and partial knowledge. are under- always written Use of the
(F) knowledge and Limited developed, clearly and Harvard
40 - 49% understanding of content or and has many system with
the subject muddled unsubstantiat grammatical errors and
matter understandin ed and spelling inconsistently
g. Lacking errors. applied.
relevant
content.
Little
evidence of
Significant Poor
ability to Inadequate
weakness and structure.
apply such Arguments referencing.
gaps in Muddled work
(F) knowledge are confused Did not use
knowledge and with many
20 - 39% and and clumsy the Harvard
understanding of spelling and
understandin expressed. referencing
the subject grammatical
g. Lacking system.
matter errors.
relevant
content.
Work
contains Poorly written
factual No evidence work, lacking
No relevant
inaccuracies, of an ability to structure and
knowledge and No or little
(F) errors and engage in paragraphs.
understanding of attempt at
0 - 19% misconceptio analysis and Many
the subject referencing.
n. Content is critical inaccuracies
matter
inappropriate evaluation in spelling and
and grammar.
inaccurate
10
STUDENT DECLARATION
I/We have read and understood the University Academic Integrity Framework and declare
that this assignment is my/our group's own work and does not involve:
1. Plagiarism
2. Copying
3. Collusion
4. Submitting false evidence of knowledge
5. Commissioning
6. Fabricating references\sources
7. Publication of data
8. Incorporating material previously submitted
9. Unethical research
Admis staff use only
Student Signature: Admin staff use only
Received by:
RECEIPT
To be filled in by student Admin staff use only
Student’s name Acknowledge
receipt by:
Intake/ Class
Module/ Unit
Date Submitted
11
