791-217 Financial Management II

Credit Points

Coordinator

Prerequisites

Financial Management I.

Semester

Contact

Subject Description

The objective of the subject is to introduce students to:

• the concepts of development budgeting, investment analysis, and cost benefit analysis to enable evaluation of long term development plans for a farm business. This will also include an introduction of strategies for coping with risk and uncertainty in decision making;
• the Australian Income Taxation system and its implication for a farm business, particularly with respect to investment strategies;
• the sources and types of finance available in Australia for the primary producer.

The content includes: The use of development budgeting for assessing farm plans, the use of discounting techniques such as net present value and internal rate of return, for evaluating alternate investments, strategies for coping with risk and uncertainty in decision making, including an introduction to future markets, the Australian Income Taxation system particularly as it relates to primary producers, and its implications for farm investment, credit facilities available to the primary producer, and the institutions providing finance.

Assessment

2 x two hour examinations (40% each); two assignments of 1000 words (10% each)