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MGT201 Financial Management GDB Spring 2020 Solution & Discussion Last Date: 03-06-2020

MGT201 Financial Management GDB Spring 2020 Solution & Discussion Last Date: 03-06-2020

MGT201 Financial Management GDB 1 Solution & Discussion Spring 2020


Due Date : 03 June 2020

 

Question:

I- Why it is important to meet the pre-requisites of a business?

II- How credit sales could be helpful for a businessman to boost his business?


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MGT201 Financial Management GDB 1 Solution & Discussion Spring 2020


 

MGT201 GDB solution idea:

 

I- Why it is important to meet the pre-requisites of a business?

Answer: Because It depends on your reasons for starting a business. By working out and defining the business needs’ first and foremost you get. Following are the main pre-requisites of a successful business.

  • A team working towards the same goals, making the result greater than what the sum of the individuals could achieve.
  • Better efficiency. Less wasted effort on functional requirements that don’t contribute to the business needs.
  • A guide for the entire project. Everyone knows what the business needs are, and when those really detailed functional questions come up, it’s easier to know the answer based on the business need.
  • You get better project estimates and have less time required to get the right solutions.
  • Main pre-requisites of a successful business: Selection, Feasibility Report, Nature of Business, Availability of Capital, Demand of Product, Business Location, Government Policy.

 

II- How credit sales could be helpful for a businessman to boost his business?

Answer: Here are some basic steps you can take to boost your credit sales performance, reduce your cost of selling, and ensure your survival.

  • Clarify your mission. Begin by understanding your business niche.
  • Break the mission into specific goals.
  • Sell to customer needs.
  • Create and maintain favorable attention.
  • Sell on purpose.
  • Ask, listen, and act. ...
  • Take the responsibility but not the credit.
  • Work on the basics.
  • Develop your attitude.
  • Maximize your time.

MGT201_GDB_Solution_Spring_2020_(www.vustudents.ning.com)

GDB-1GDB-1Mgt201
Q1: Calculate the value of both investment options 
Note: Complete Calculations and formulas are mandatory; marks will be deducted on providing just answers). So check them from your handouts once.
Option 1
100000*0.12*2*10 = Rs.240000Total Value =100000+240000 = Rs.340000
Option 2
50000*0.1*10 = Rs.5000050000*0.12*10 = Rs.60000Total Value = 100000 + 50000 + 60000 = Rs 210000
Q2: Based on the calculation of part 1, which option Mr.Ahmed should select and why?Ans: Mr. Ahmed should select option 2 because the Total Value of this option is more than option 1.s

Calculate the value of both investment options

Being able to determine the present value of each potential investment, purchase, or cash flow before committing to it can help you and your company make the best possible decisions.
Calculation Formula
PV = FV / (1 + rt)

Take a closer look at earnings
PV = Present value.
FV = Future value.
r = Rate.
t = Time (in years)
1 = Percentage constant.

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