Financial Management & Control Final Copy

8/10/2019 Financial Management & Control Final Copy

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1Financial Analysis

FINANCIAL MANAGEMENT & CONTROL

[Name]

[Afliation]



2Financial Analysis

Table of Contents

Part A..............................................................................................................................................3

Financial Analysis Report for the Board of Smithson Plc...............................................................4

Calculating the Working Capital Cycle in days for Smithson Plc assuming 3! days" for the years

#$%3 and #$%#..................................................................................................................................&

Part B.............................................................................................................................................11

Feasi'ility Calculation 'y Capital Budgeting................................................................................%#

()aluating the Benefits and *imitations of (ach of the +iffering ,n)estment Appraisal

-echniues.....................................................................................................................................%

Part C............................................................................................................................................17

/ain Sources of Finance A)aila'le to Business and their Ad)antages 0 +isad)antages.............%1

Breake)en assumptions and Critical ()aluation............................................................................#%

References.....................................................................................................................................24



3Financial Analysis

Part A

Financial Statements Analysis of

Smithson Plc



4Financial Analysis

Financial Analysis Report for the Board of Smithson Plc.

From: Smithson plc.

To: Board of Smithson plc

Subject: Performance Evaluation Report

The financial performance of Smithson plc is evaluated on the basis of its

financial position which explains the details and results we have arrived upon. Following

is a detailed analysis of the financial position of the company.

Profitability Ratio

Profitability can simply be defined as firms potential to generate profit for the firm

!Shimerda" #$%#&.

'ross profit margin ( 'ross profit ) *et sales + #,,

For the year -,# ( /,-,)#%0,+#,, ( 0,.1$2

For the year -,#- ( /,,)#-0,,+#,, ( 0%.3,2

4t shows the profitability of services and goods. 4t explains as to how much it can

cost for producing the product. 4t is calculated as dividing gross profit !'P& by net sales

!*S& and multiplying the 5uotient by #,,. !Savelyeva" -,#-&

6perating profit margin ( EB4T) *et sales

For the year -,# ( -#30)#%0,+#,, ( #0.3$2

For the year -,#- ( 3-,,)#-0,,+#,, ( .1,2



5Financial Analysis

6perating margin is calculated by dividing your operating profit !6P& by your net

sales !*S& and multiplying the 5uotient by #,,. !Siegel et al." #$$%&

*et profit margin ( *et Profit after tax ) *et sales +#,,

For the year -,# ( #,,,)#%0,+#,, ( /.--2

For the year -,#- ( -0%,)#-0,,+#,, ( -,.132

“4t is the percentage of revenue remaining after all operating expenses"

interest" taxes and preferred stoc7 dividends !but not common stoc7 dividends& have

been deducted from a company8s total revenue.9 !4nvestinganswers.com" n.d.&

:i5uidity Ratios

:i5uidity ratio measures a business8s potential to meet its short;

term financial liabilities on time. E.g. the ratio of current assets to current liabilities.

!TheFree<ictionary.com" n.d.&

=urren t ra tio ( =urren t asse ts ) =urren t liabili ties

For the year -,# ( 03,,)1,, ( #.0,

For the year -,#- ( --0)-0,, ( #.-$

4t simply estimates if the firm is capable of paying the debts due within a period of

one year out of the current assets.

>uic7 ra tio ( !=urren t asse ts ? inventory& ) =urren t liabili ties

For the year -,# ( !03,,;0,,&)1,, ( #.1

For the year -,#- ( !--0;-/0&)-0,, ( #.#%

http://www.investinganswers.com/financial-dictionary/businesses-corporations/revenue-5108


http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/operating-expense-2792

http://www.investinganswers.com/financial-dictionary/tax-center/taxes-4567

http://www.investinganswers.com/financial-dictionary/income-dividends/stock-dividend-5151

http://financial-dictionary.thefreedictionary.com/Firm

http://financial-dictionary.thefreedictionary.com/Short-term


http://financial-dictionary.thefreedictionary.com/Finance

http://financial-dictionary.thefreedictionary.com/Obligation

http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/operating-expense-2792

http://www.investinganswers.com/financial-dictionary/tax-center/taxes-4567

http://www.investinganswers.com/financial-dictionary/income-dividends/stock-dividend-5151

http://financial-dictionary.thefreedictionary.com/Firm



http://financial-dictionary.thefreedictionary.com/Finance

http://financial-dictionary.thefreedictionary.com/Obligation




6Financial Analysis

4t is calculated by deducting the inventories or stoc7s from total current assets.

'earing Ratio

4t is the proportion of a firm8s debt to its e5uity. @ high gearing ratio represents a

high proportion of debt to e5uity" and a low gearing ratio represents a low proportion of

debt to e5uity. 4f the gearing ratio is high" it shows that the proportion of debt to e5uity is

also high. 4f the gearing ratio is low" it means that proportion of debt to e5uity is also

low. [email protected]" n.d.&

<ebt ) E5uity Ratio ( total debt ) shareholders e5uity

For the year -,# ( $,,)!%30A#%,0&

( $,,)010, ( 1$.,-

For the year -,#- ( -3,,)1,,A$-0

( -3,,)30-0 ( 0.,

<ebt;to;E5uity ratio is the ratio of total liabilities of a business to its shareholders8

e5uity. !c:aney and @trill" -,#-&

Times 4nterest Earned Ratio ( Earnings before interest and taxes ) interest payable

For the year -,# ( -#30)00, ( .$,

For the year -,#- ( 3-,,)0, (#-.,,

!Brigham and Couston" -,,3&

<ebt Ratio ( total <ebt ) total assets

For the year -,# ( /0,,)##0,+#,, (0/.,2

For the year -,#- ( 3$,,)$3-0+#,, (0#.$$2



7Financial Analysis

D<ebt ratio is calculated by dividing the total debt over total assets.9

!TheFree<ictionary.com" n.d.&

@sset tiliation Ratio

4t represents the ability of management for ma7ing the best use of its resources

for generating revenue. 4t is very useful in a manufacturing concern where lesser capital

assets are used to produce products. !Bdc.ca" n.d.&

@ccounts receivable turnover ( *et credit sales ) @verage accounts receivable

For the year -,# ( #%0,)/0, ( .1$

For the year -,#- ( #-0,,)-1,, (3.%#

!Gandament and Hones" #$$&

@verage collection period ( 10 days ) @ccounts receivable turnover

For the year -,# ( 10).1$ ($%.$- days

For the year -,#- ( 10)3.%# (/0.%% days

DThe approximate amount of time which a business ta7es for receiving payments

owed" in terms of receivables" from the firms clients and customers.9 !4nvestopedia"

-,,$&

4nventory turnover ( =osts of goods sold ) @verage inventory

For the year -,# ( 1%,)0, (#$.0#

For the year -,#- ( 0-,,)--0 (-.##



8Financial Analysis

sually a high number shows a higher sales efficiency. 6n the other hand" a

lower ris7 of loss through un;saleable stoc7. 4t is arrived at by dividing the cost of goods

sold over average inventory. !Gandament and Hones" #$$&

@verage age of inventory ( 10 ) 4nventory turnover

For the year -,# ( 10)#$.0#(#%./# days

For the year -,#- ( 10)-.##(#0./$ days

4t tells the number of days an inventory can be held. The longer inventory is held"

the greater is its ris7 of not being sold at full value. !Gandament and Hones" #$$&

Total assets turnover ( *et sales ) @verage total assets

For the year -,# ( #%0,)I!##0,A$3-0&)-J (#.-

For the year -,#- ( #-0,,)$3-0 (#.

4t indicates that how efficiently the management is utiliing its assets for the

enhancement of sales. !Tennent" -,,%&

6perating cycle ( @verage collection period A @verage age of inventory

For the year -,# ( $%.$- A #%./# ( ##/.1days

For the year -,#- ( /0.%% A #0./$ ( $#.1/days

!Tennent" -,,%&

4nterpretation

http://www.businessdictionary.com/definition/high.html

http://www.businessdictionary.com/definition/sales.html

http://www.businessdictionary.com/definition/efficiency.html

http://www.businessdictionary.com/definition/risk-of-loss.html

http://www.businessdictionary.com/definition/stock.html

http://www.allbusiness.com/finance/insurance-risk-management/820-1.html?lc=int_mb_1001

http://www.businessdictionary.com/definition/high.html

http://www.businessdictionary.com/definition/sales.html

http://www.businessdictionary.com/definition/efficiency.html

http://www.businessdictionary.com/definition/risk-of-loss.html

http://www.businessdictionary.com/definition/stock.html

http://www.allbusiness.com/finance/insurance-risk-management/820-1.html?lc=int_mb_1001



9Financial Analysis

Giewing the profitability ratios it can be seen that although the gross profit has

decreased in the current year" its percentage to sales has increased considerably which

explain the cost efficiencies of the manufacturing division. Further the operating profit

and the net profit has also decreased although in relation to the percentage of sales it

has increased which explains the cost efficiency of the company on the whole. Ke can

see that an increase in the sales lead an increase in the costs but these costs have lead

to more profitable results. =urrent liabilities on the other hand" have also decreased in

relation to the current liabilities in the li5uidity ratios explaining the effective policies and

efficiency of the purchases divisions. The Turnover rate of inventory and Receivables

have also increased while the payables turnover have decreased considerably showing

a remar7able efficiency of the company" also the decrease in operating cycle shows a

positive move towards profitability.

=onclusionL

From the financial analysis of the detailed wor7ing in the above ratios and the

wor7ings it can be clearly concluded that the company has performed better as

compared to the previous year. The ratios on the whole are showing a favorable trend of

the increased sales situation.



10Financial Analysis

Calculatin the !or"in Capital Cycle in days for Smithson

Plc assumin #$% days& for the years '()# and '()'

Kor7ing =apital =ycle( !@verage Kor7ing capital+10&)@nnual sales Revenue

For the year -,# ( !#%,,A/-0)-& + 10 ) #%0, (.-/ days

For the year -,#- ( /-0 + 10 ) #-0,, ( -#.#/ days

The wor7ing capital cycle of the company has decreased by about #,;## days

which leads to the conclusion that it is converting its wor7ing capital into revenue on a

faster rate now. This increased efficiency is the ultimate result of the better performanceof all the other factors that Mointly too7 part in increasing the profitability of the company.

=onclusion

The above ratios and their calculations show the positive trend towards

profitability of the company and efficient policies of management.




Part !

Feasibility Calc"lations by

In#estment A$$raisal Techni%"es

'ones Lt()




F(AS,B,*,-2 CA*C*A-,5 B2 CAP,-A* B+6(-,56

Capital Budgeting is the name of process in 7hich companies decide as 7hat long8term

in)estment should 'e made. A Capital Budgeting is e9pected to put out cash flo7s for se)eral

years. -he decision of accepting or re:ecting a Capital Budgeting pro:ect is dependent on cash

flo7 analysis produced 'y the pro:ect and its cost. ;Wilkes" %&<<=

-he Pay'ack Period

-he pay'ack period is the time period 'et7een the %st payment on a loan and the maturity

of it. ,n this period" the 'orro7er has to pay 'ack the loan. ,n case she or he has no funds to pay

'ack the loan" she or he has to take a different loan for this.

Pay'ack Period > Amount to 'e initially in)ested ? (stimated annual net cash flo7

> #<!"$$$ ? #4#!$#

> %.%3 years

(stimated annual net cash flo7

Year Cash Inflows Cash Expenses Depreciation al!a"e #al$e %et Cash flow

% 1!$$$ %#!$$ 31&!1 33!4#

# 1!$$$ %#!$$ 31&!1 33!4#

3 1!$$$ %#!$$ 31&!1 33!4#

4 1!$$$ %#!$$ 31&!1 33!4#

! 1!$$$ %#!$$ 31&!1 33!4#

1!$$$ %#!$$ 31&!1 4%#!$ <4<&#

%et &1'(''' 7&''' 23374) 412&' 242&'2

<epreciation ( 6riginal =ost ? Residual Galue ) Estimated life

( -/0,,,;!-/0,,,+#02& ) 1

( Rs.%$0%);




4nterpretation

The calculations illustrate a very constructive drift of returns from the venture and

therefore should be accepted.

@ccounting Rate of Return

D@ccounting rate of return shows the earning interest and taxes as a percentage

of the capital employed at the end of an accounting period.9 !Business<ictionary.com"

n.d.&

@ccounting Rate of Return ( @verage @ccounting 4ncome ) 4nitial 4nvestment + #,, ( !-3-0,-)1& ) -/0,,, + #,,

( #3./,2

4nterpretation

The @ccounting Rate of Return is greater than the cost of capital for this reason it

explains a very positive return from the proMect which is favorable for the business and

conse5uently should be accepted.

*et Present Galue

DThe difference between the present value of the future cash flows from

an investment and the amount of investment. Present value of the expected

cash flows is computed by discounting them at the re5uired rate of return.9

!Business<ictionary.com" n.d.&

*et Present Galue ( Present Galue of cash flows ; 4nitial 4nvestment

( #%$/0;-/0,,,

( 3$/0

http://www.businessdictionary.com/definition/capital-employed.html

http://www.businessdictionary.com/definition/accounting-period.html


http://www.businessdictionary.com/definition/present-value-PV.html

http://www.businessdictionary.com/definition/cash-flow.html

http://www.businessdictionary.com/definition/investment.html

http://www.businessdictionary.com/definition/amount.html

http://www.businessdictionary.com/definition/flow.html

http://www.businessdictionary.com/definition/discounting.html


http://www.businessdictionary.com/definition/required-rate-of-return.html

http://www.businessdictionary.com/definition/capital-employed.html


http://www.businessdictionary.com/definition/present-value-PV.html

http://www.businessdictionary.com/definition/cash-flow.html

http://www.businessdictionary.com/definition/investment.html

http://www.businessdictionary.com/definition/amount.html

http://www.businessdictionary.com/definition/flow.html


http://www.businessdictionary.com/definition/required-rate-of-return.html




Year Cash

Inflows

Cash

Expenses

al!a"e

#al$e

%et Cash

flow

Disco$nt

*actor+

12,

Present

#al$e

% 1!$$$ %#!$$ <#!$$ $.1&#& 4<3!

# 1!$$$ %#!$$ <#!$$ $.<&<# !<<&<3 1!$$$ %#!$$ <#!$$ $.<%%1 !%$

4 1!$$$ %#!$$ <#!$$ $.3!! 4$<4

! 1!$$$ %#!$$ <#!$$ $.!<4 4%%3<

1!$$$ %#!$$ 4%#!$ %%3<!$ $.!$ !<#

%et &1'(''' 7&''' 412&' 242&'2 31)-7&

Present Galue ( *et cash Flow + <iscount Factor

<iscount Factor ( !# N !# A i&O;n &) i

( !# N !# A ,.#-&O;n &) ,.#- Khere n is the number of year.

4nterpretation

Since the *et Present Galue of the venture is positive and returns are accumulated

within - years as a result this proMect should be accepted" moreover the rate of return is

also higher than the cost of the capital.

The 4nternal Rate of Return.

Year

%et Cash

flow

Disco$nt

*actor +

12,

%et

Present

#al$e

Disco$nt

*actor +

17,

%et

Present

#al$e

Disco$nt

*actor +

1),

%et

Present

#al$e

$ #<!$$$ %.$$$ ;#<!$$$= %.$$ ;#<!$$$= %.$$ ;#<!$$$=

% <#!$$ $.1&#& 4<3! .1!4< %& .14<! %444

# <#!$$ $.<&<# !<<&< .<3$! !#&% .<%1# !#$<$

3 <#!$$ $.<%%1 !%$ .#44 4!#& .$1 44%#4

4 <#!$$ $.3!! 4$<4 .!33< 31&3 .!%!1 3<3&

! <#!$$ $.!<4 4%%3< .4!% 33$< .43<% 3%&$

%%3<!$ $.!$ !<# .31&1 4434$ .3<$4 4#%33

%P# 43-7& 172'- /14&0




4nterpretation

The 4RR rule is as follows as where 4RR cost of capital ( accept proMect and

where 4RR Q cost of capital ( reMect proMect

From the above calculations 4RR is between #/2 and #%2 both of which are

higher than the cost of capital so according to 4RR we should accept the proMect.

=onclusion

@ccording to the illustrations and explanations the proMect is viable for the

business in every facet as a result additional investigations should be made for

amplification of non;finance factors and a decision should be made for a rapid reply.




()aluating the Benefits and *imitations of (ach of the +iffering ,n)estment

Appraisal -echniues

/ethod Ad)antages +isad)antages

Pay'ack period

,t gi)es an immediate

assessment on much time it 7ill

take to recuperate a cost.

,t is helpful 7here the time

scale is relati)ely less.

,llustrates ho7 uickly the cash

flo7 'ecomes positi)e and isaccommodating 7here firms

ha)e cash flo7 issues.

6i)es an e9tremely

fundamental outlook of the

situation. +oes not take account of

the authenticity that future proceeds may 'e less

imperati)e. ,gnores ualitati)e

position of the option.

A)erage rate of return

+emonstrates the profita'ilityof the pro:ect.

-akes consideration of the

importance of rate fluctuations.

sed to compare 7ith alternate

in)estment pro:ects.

+oes not take account ofthe facts that estimated

profits may 'e not as much

of )alue. Pays no attention to

ualitati)e feature. A)oids thinking a'out ho7

long it may take to restoreoriginal pay out and the

costs of in)estment

reuired.

5et present )alue

-akes financial notice of

interest rates.

Considers the yield of the

undertaking.

Permits for the information" the

future profits may 'e less

)alua'le than at hand income.

,gnores ualitati)e aspect

of the conclusion.




Part C

So"rces of Finance & Critical

E#al"ation of !rea*e#en Analysis




ain Sources of Finance available to Business and their @dvantages <isadvantages

Sponsorship

Sponsorship occurs when a company gives financial support to another company

in exchange for putting on display their company8s promotions. 4t is advantageous in

ways that it reduces the cost of company for promotions and development extension"

further helps out the small scaled business to add details to public side view in cost;

effective manners" also the prolongation of sponsoring companies in events set forth

public everyday Mobs and try to win more productively in opponent to other businesses inthe competition.

<isadvantages include the complicated tas7 to get permission this source of

finance and other individual company problems. !Ec7bo" -,,%&

Ban7 :oans

Ban7s are other good contributors of financial supply of capital. For some

companies" we may be capable of ma7ing safe a loan" for some other setups" wed

have to control properties li7e real estate" large stoc7s by using them as pledge for the

loan. The advantage of borrowing is that it ma7es it possible for us to 7eep cash in hand

and to use as in commission income or for personal sustained survival during a down

period in the company. 4n addition" if promotion and sales are down" we would be

capable of loo7ing after our most very important private assets by declaring ban7ruptcy.

!=umming" -,#-&

The disadvantages are that we would have to pay interest on the loan. 4n addition

to this" our costs will be due on time in spite of the fact of whether business is bad or

good.

Personal Savings and @ssets




Personal savings ma7e a great source of investment as getting hold of these

expenses is cost free" and we do not be pay interest on ban7 loan or give out proceeds

to investors.

=ertainly" if we invest our own resources into a business" we could lose it all.

Some assets and financial accounts are hidden from creditors and li5uidation benches"

investing of these assets at ris7 may not be good for us" particularly if we are in the near

future approaching retreating age and are running out of time to rebuild worn out

accounts it certainly is not a good idea. !Bhowmi7 and Saha" -,#&

'overnment 'rants and :oans

The 'overnments offer more than a few loans and grant facilities to help

companies set up and help out the readily available proMects in expansion" some state

have similar proMects on a smaller scale. 'rants are for the most part free money" and

government guaranteed loans are with interest rates that are typically far lower than

what we can get on our own.

nluc7ily" grants come with a lot of official procedures politics and may not be

on hand for every type of business. Financial arrangement issues from year to year may

have a conse5uence on the ease of access of finances. @s a final point" a government

assured loan is a loan and we would have to pay bac7 in the face of whether the

business is good or bad. !=rundwell" -,,%&

4nvestors

=ooperate with a group of lenders who can help us lift up problems of

establishing or addition of capital for our own company without adding all of the danger

of loss on one party alone. Such investors may be active contacts in the business" or

they may be still investors who only wait for their profits.

6n the other hand to bring in the investors is to give up a clear;cut part of

administration of the business. Even if we do hang on to a better part of interests" we




still would need to 7eep our investors at ease. 4nto the bargain" if we share the ris7 with

others" well also have to share the profits. !=umming" -,#-&

:easing

:easing companies own the e5uipment and lease it to the lessee. 4t is a fund

which includes strong early investment for new fangled businesses" in addition to these

services of maintenance and improvement" further such asset is categoried as an

expense" as a conse5uence the tax for lessee is reduced. <isadvantage includes the

difficulty that long term leasing is more expensive than purchasing the e5uipment.

!=umming" -,#-&

=onclusion

4nvestment comes from the different types of sources i.e. the internal sources"

which include money from the sale of assets" the control of capital" which includes the

submission of stoc7 to investors paying cash for their shares and ta7e a possession

business enterprise in the company. @nd to conclude" financial support can come fromnon ownership capital" which means grants" loans" lines of credit and outlay from Mob

lenders" who won8t ta7e a possession rights part in the company.




Brea7even assumptions and =ritical Evaluation

Brea7 even

@ research to bring to a close the point at which profits predictable e5uals the

costs associated with obtaining the proceeds. Brea7even analysis is a study that only

analyes the costs of the sales. 4t does not illustrate the demand;price relationship.

@ssumptions

4ts assumptions are as follows

#. Fixed costs remain invariable in total.-. Production e5uals sales.. Selling price is constant.3. =onstant expertise and e5uipments.0. =osts and revenues change with changes in sales volume.

=ritical Evaluation

Brea7even is a short run analysis. 4t assumes that unit variable costs and unit

revenues are fixed which is appropriate for undersied deviations from current

manufacture and sales" and also states a comprehensible division in the middle of fixed

costs and variable costs" even though in the long run all costs are inconsistent. Khen

we assess brea7even it is where we ma7e apparent the position at which there will be

neither profit nor loss which means that the company is under brea7even status.

Brea7even analysis will supply a sales point that can be expressed in either

dollars or units of sales" or whatever else is applicable. 4f brea7even is 7nown" it can be

a target to be achieved and exceeded by carefully planning and implementation of

policies.

This is a wonderful way to test far removed from alternatives. =learly" this is a

one;sided process but so is the rest of business research and analysis. The motive is to




ma7e the business verdicts as profitable as possible. Brea7even analysis can be one of

the most helpful tools available for this reason.

The Brea7 even has restrictions in conMunction with its paybac7s which are its

analysis is only a suppliers side analysis" as it demonstrates not anything about whatdemand is in fact li7ely to be for the manufactured goods at the a variety of prices. 4t

assumes that fixed costs are fixed" even supposing this is perfect in the short term but

an extension in the intensity of production is on the point of motivating the fixed costs to

increase.

@s it also assumes variable costs are fixed per unit of production" at least in the

range of probable 5uantities of sales. The 5uantity of goods produced is e5ual to the

5uantity of goods sold which is extremely improbable as it does no ta7es account of thenon;cost factors of the mar7et that motivates customers to alter their consuming

activities and behaviors. 4n multi product companies" the sales proportion is to be fixed

but in certainly it is understood to be a Must what the doctor ordered position.

Below example shows the wor7ing of the brea7even analysis.

4f the manufacturing cost of a table is 0,. @lso" the fixed cost is #",,,. The brea7even

point for selling the tables shall beL

-, tables" if selling for #,,

Brea7even ( Fixed =osts) !Sale Price;Gariable =osts&

Brea7even ( #,,,) !#,,;0,& ( -, tables

/ tables" if selling for -,,

Brea7even ( Fixed =osts) !Sale Price;Gariable =osts&

Brea7even ( #,,,) !-,,;0,& ( / tables

4nterpretation

4f the product is being sold at a higher price" the brea7;even point shall occur

more 5uic7ly.




=onclusion

Brea7even analysis is a powerful organiational method" noteworthy in setting

up" decision ma7ing" and expenditure management. This analysis is very useful in

determining whether to buy or lease" broaden into new vicinity" build a new plant" and

many other such decisions. 4t can also show the sound effects on businesses of varying

the price ma7eup. Thus it is on businesses on how they ma7e use of this facility for

ma7ing their businesses more profitable.




References

@ccountingtools.com" !n.d.&. Gearing Ratio - AccountingTools. onlineU @vailable atL

httpL))www.accountingtools.com)gearing;ratio @ccessed 3 Hul. -,#3U.

@ccountingtools.com" !n.d.&. Gearing Ratio - AccountingTools. onlineU @vailable atL

httpL))www.accountingtools.com)gearing;ratio @ccessed 3 Hul. -,#3U.

Bhowmi7" S. and Saha" <. !-,#&. Sources of Finance. Springer " pp.1#;;/#.

Brigham" E. and Couston" H. !-,,3&. Fundamentals of financial management . #st ed.

ason" 6hioL Thomson)South;Kestern.

Business<ictionary.com" !n.d.&. What is accounting rate of return (ARR)? definition and

meaning . onlineU @vailable atL

httpL))www.businessdictionary.com)definition)accounting;rate;of;return;@RR.html

@ccessed 3 Hul. -,#3U.

Business<ictionary.com" !n.d.&. What is net present value (N!)? definition and

meaning . onlineU @vailable atL httpL))www.businessdictionary.com)definition)net

present;value;*PG.html @ccessed 3 Hul. -,#3U.

=rundwell" F. !-,,%&. Sources of Finance. Finance for "ngineers# "valuation and

Funding of $apital ro%ects" pp.0,/;;0-$.

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