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Asignacion1 Fina 2100

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Asignacion1 Fina 2100
Yanira Torres Soto
P00404518
FINA2100
Asignación

Contesta las siguientes preguntas:

1. What is finance? Finance is the management of large amounts of money, specially by governments of large companies. Explain how this field affects the lives of everyone and every organisation. All individuals and organisations earn or raise money and spend or invest money. Finance is concerned with the process, institutions, markets and instruments involved the transfer of money among individuals, businesses, and governments. Most adults will benefit from an understanding of finance, which will enable them to make better personal financial decisions.

2. Describe the field of managerial finance. Managerial finance is concerned with the duties of the financial manager in the business firm.

Why is the study of managerial finance importante regardless of the specific area of responsibility one has within the business firm? Because regardless your job description you need to work with financial personnel to justify labor requirements, negotiate operating budgets, deal with financial performance appraisals, and sell proposals at least partly on the basis of their financial merits. Those managers who understand the financial decision- making process will be better able to address financial concerns and will therefore more often get the resources they need to obtain their goals.

Resuelve el siguiente problema sobre análisis marginal:

The managerial finance function and economic value added (EVA). Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $560,000 (in today’s dollars) over the next 5 years. The existing robotics would produce benefits of $400,000 (also in today’s dollars) over that same time period. An initial cash investment of $220,000

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