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Assess project risk in a financial analysis
discuss steps and explain importance. Will leave a thumbs up, thank you
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Solved in 3 steps
- Project Appraisal and Financing. We have studied the subject under the following headings . Please prepare a flowchart or a table where the features get highlighted. The purpose is to establish that you have understood the concepts in a broad manner. Selection of Project Time Value of Money Investment Criteria Project cash flows Project Risk Analysis Financing of Projecthow to assess financial support project whether there is a need to conduct a financial analysis. What are the possible aspects you will consider in conducting a financial analysis of that project?Your client is evaluating the upside and downside of a potential investment. What stage of the Financial Planning process is this? O Routine Allocation O Indemnification O Assessment
- QUESTION 1 The accounts manager of VM Gym & Sports has been asked to evaluate a potential capital investment of a set of rowing machines. The following data is available for cach project: Machine 1 Machine 2 RM RM Cost (immediate outlay) 500,000 245,000 Expected annual profits (losses) Year 1 I. 80,000 84,000 Year 2 90,000 136,000 Year 3 116,000 126,000 Year 4 146,000 150,000 Annual running costs 30,000 24,000 Annual service costs 36,000 20,000 Estimated residual value equipment 40,000 30,000 *The total annial running and service costs for Machine 2 in the first year is RM 36,000 The committee has estimated a cost of capital of 30% and employs the straight-line method of depreciation for all fixed assets when calculating net profit. The following discount factors are given: Year Cost of capital 10% 50% 0.909 0.667 2. 0.826 0.444 3. 0.751 0.296 4. 0.683 0.198Recommend an asset allocation that matches the Johnsons' financial objectives and their moderate risk tolerance. Make sure you indicate what the asset allocation is and why it meets their needs.The last step in the financial planning process is to Group of answer choices use financial statements to evaluate results of plans and budgets, taking corrective action as required implement financial plans and strategies. periodically develop and implement budgets to monitor and control progress toward goals redefine goals and revise plans and strategies as personal circumstances change develop financial plans and strategies to achieve goals
- Prepare an information memorandum for the project to be presented to the potential financiers. Among others it should contain the following: 1. The full business description of the project 2. An analysis of the key risks facing the project and the ways of mitigating the risk. 3. The proposed financing structure and justification for using that particular structure.Prepare an information memorandum for the project to be presented to the potential financiers. Among others it should contain the following: 1. The full business description of the project. 2. An analysis of the key risks facing the project and the ways of mitigating the risk. 3. The proposed financing structure and justification for using that particular one.Discuss and explain in details the five most typical and common mistakes when making assumptions for and preparing cashflow projection for investment project proposal?
- Financial analysis is very important factor for a successful project, discuss its strength and weakness in the financial management control. You may discuss any technique with suitable example and identify the financial management. create any example which is related to this task. . Give appropriate reference and citation for your answer.Why should a client provide their investment manager with an investment policy statement? Be specific. Edit View Insert Format Tools TableDefine “the stand-alone principle” applying in evaluating projects and discuss the types of cashflows in project evolution.
